Appendix 4 - Developing a Paralegal Firm Business Plan
Developing a Paralegal Firm Business Plan
The Following worksheet leads you through each of the categories of a basic law practice business plan.
- EXECUTIVE SUMMARY
- Description of the Law Firm
[brief summary paragraph]
- Firm Goals and Strategy
[brief statement]
- Partners and Key Staff
[brief statement]
- Practice Areas
[brief statement]
- Unique Characteristics of the Firm
[brief statement]
- Types of Clients to be Served
[brief statement]
- Firm Economics and Profitability
[brief statement]
- Financing Requirements
[brief statement]
- THE MARKET FOR LEGAL SERVICES
- The local Economy and the Need for Legal Services
[detailed analysis – may be additional pages]
- The Firm’s Marketing Plan
[detailed analysis – may be additional pages]
- The Firm’s Practice Areas
[detailed analysis – may be additional pages]
- The Firm’s Start-Up and Growth Strategy
[detailed analysis – may be additional pages]
- MARKET RESEARCH AND ANALYSIS
- Current and Potential Clients
[detailed analysis – may be additional pages]
- Market Size and Trends
[detailed analysis – may be additional pages]
- Competition – Other firms
[detailed analysis – may be additional pages]
- Future Practice Areas
[detailed analysis – may be additional pages]
- FIRM ECONOMICS
- Start-up Expenses
[detailed analysis – insert chart or spreadsheet]
Expense Items
|
Estimated Cost
|
Cash or Credit
|
Source of Cash or Credit
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Start-Up Expenses
|
|
|
- Billing Summaries
[detailed analysis – insert chart or spreadsheet]
Projected Revenue
|
Per Month
|
Per Year
|
Hourly Fees
|
$
|
|
Contingency Fees
|
$
|
|
Flat Fees
|
$
|
|
Retainer Fees
|
$
|
|
Other Fees
|
$
|
|
Other Revenue
|
$
|
|
Projected Revenue
|
$
|
|
- Expense Summaries
Payroll:
|
Monthly
|
Annual
|
Partners
|
$
|
$
|
Associates
|
$
|
$
|
Law Clerks
|
$
|
$
|
Assistants
|
$
|
$
|
Other Staff
|
$
|
$
|
Sub-total Payroll Expenses
|
$
|
$
|
Taxes and Benefits:
|
Monthly
|
Annual
|
Payroll Taxes
|
$
|
$
|
Insurance
|
$
|
$
|
Parking
|
$
|
$
|
Other
|
$
|
$
|
Sub-total Taxes & Benefits
|
$
|
$
|
Office Expenses:
|
Monthly
|
Annual
|
Advertising
|
$
|
$
|
Bank Charges
|
$
|
$
|
Books
|
$
|
$
|
Other Library Expenses
|
$
|
$
|
Client Development
|
$
|
$
|
Equipment Rental
|
$
|
$
|
Insurance-Gen. Liability
|
$
|
$
|
Insurance-Excess
|
$
|
$
|
Maintenance/Repair
|
$
|
$
|
Office Supplies
|
$
|
$
|
Periodicals
|
$
|
$
|
Professional Fees/Dues
|
$
|
$
|
Rent
|
$
|
$
|
Taxes
|
$
|
$
|
Telephone
|
$
|
$
|
Travel Expenses
|
$
|
$
|
Utilities
|
$
|
$
|
Sub-total Office Expenses
|
$
|
$
|
Total Expenses
|
$
|
$
|
- Revenue/Net Income per Partner
Partner Name
|
Gross Revenue
(total fees)
|
Net Income
(fees-expenses)
|
Partner
Compensation
|
|
$
|
$
|
$
|
|
$
|
$
|
$
|
|
$
|
$
|
$
|
|
$
|
$
|
$
|
- MARKETING PLAN
- Overall Marketing Strategy
[detailed analysis – may be additional pages]
- Billing Rates and Alternative Billing Policies
[detailed analysis – may be additional pages]
- Client Service Initiatives
[detailed analysis – may be additional pages]
- Advertising and Solicitation Plan
[detailed analysis – may be additional pages]
- FIRM PERSONNEL
|
Name
|
Brief Biography
|
A. Partners
|
|
|
|
|
|
B. Associates
|
|
|
|
|
|
C. Key Staff
|
|
|
|
|
|
- FIRM PERSONNEL
- Income Statements and Balance Sheets
[detailed analysis – insert chart or spreadsheet]
- Pro Forma Income Statements
[detailed analysis – insert chart or spreadsheet]
- Pro Forma Balance Sheet
[detailed analysis – insert chart or spreadsheet]
- Pro Forma Cash Flow Analysis
[detailed analysis – insert chart or spreadsheet]
Mitchel L. Winick, J.D., Texas Center for Legal Ethics and Professionalism, Austin, Texas, 1 800-204-2222 ext. 2161, mwinick@airmail.net