The purpose of business planning is to establish a common focus for action. This is done by:

1. Clarifying goals
2. Establishing measures of results
3. Assessing resource distribution needs
4. Unifying the firm to commit to a course of action

Following are the most important steps to take in preparing to write your business plan:

Get the Process Organized

• Why do it?
• What is it?
• Who will do what?
• Evaluation of the planning process

Evaluate Your Competitiveness

• Who are our existing clients?
• What is our fee history?
• Are we using outside services?
• Are we recognizing opportunities for cross-selling?
• How much do we really collect?
• What are we capable of?
• What are our internal resources?
• Who are our competitors?
• What is our market?
• Why are they our competitors (experience, price, speed, etc.)?
• How do they affect our clients?
• What do we do for their clients?
• What is our technology situation?

1. What type of systems do we use?
2. What can we use our systems for?
3. Do we need to upgrade?

• Are there any trends developing which may affect our clients – changing laws, economy, etc.
• Are there any developments affecting current structure of our firm

Internal Strengths and Weaknesses

Consider the following:

• What is our professional reputation?
• How do we deliver legal services?
• What kind of staff do we want in our firm and how do we train them?
• What type of office environment (physical location, appearance, etc.) do we want?
• What is our culture?
• How do we manage our practice?
• Who are the firm leaders and why?
• What kind of support services do we have?
• What are the firm’s finances?

Reassess Your Strategy

• Define primary mission
• Set goals
• Review your strategy

Evaluate Your Resources Objectively

• Office organization and structure
• What kind of leadership and management skills do we have?
• What kind of tools are we using – i.e. technology, support systems, standardized forms, etc.?
• How do we identify the skills we need to recruit, how do we allocate the work among attorneys, paralegals, etc.?
• How are we doing financially, do we collect everything we bill, do we need additional capital?

Business Projection

• What kind of revenue and volume of business do we project – to work at capacity?
• What is our payroll expense now and what will it be in the future?
• How much space do we need?
• What type of technology do we need?
• What kind of transactional expenses are we expecting?
• What are our projected expenses relating to office relocation, computer conversion, etc.?
• What is our capital projection (capital sources less capital needs = net income)?

Prepare Your Financial Plan

• Balance Sheet
• Income Statement
• Cash Flow Statement
• Policies for financial management
• Financing plan

Prepare Your Business Plan Document

• Executive Summary
• Business and Revenue Forecast
• Professional Staffing Plan
• Support Staff Requirements
• Technology Forecast
• Space Requirements
• Organization and Management Plan
• Financial Plan – Operations and Capital

How to Successfully Implement “The Plan”

• Establish a common will and consensus to the plan
• Keep focused on the goals
• Recognize established leadership of the organization
• Make the commitment to proper resource allocation
• Expect to give and receive accountability for results
• Reward motivation
• Overcome inertia and avoid complacency
• Measure and evaluate results and – if necessary, readjust the plan to coincide with new developments