Law firm business plan
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Law Firm Business Plan
Provision of legal services.
· Return on investment - from 2 to 4 months;
· Net profit of the project - from $ 4,000 to $ 8,000 per month.
Two lawyers in a small rented apartment in a residential neighborhood will provide counseling services to the population and deal with company registration. These are the most popular areas that can generate income from the first day of the firm's operation. Only additional advertising costs will be required, for which even a newspaper ad is suitable.
The usual activity of a law firm is the provision of consulting services to the public and legal entities. A person comes to the office with his problem or question, and a lawyer advises him in the legal field, suggests ways and opportunities. Further legal support in court is possible. Another area is registration and re-registration of enterprises. In addition, there is legal outsourcing, when a lawyer solves the profile cases of other companies for a fixed monthly fee. The latter direction appears to be the most profitable. A package of several dozen companies "sitting" on a monthly fee is a pleasant crown of the legal business, on which the business plan of a law firm should be guided.
Classification and characteristics of the target audience
The population turns to lawyers for a wide variety of assistance. These are problems in obtaining an inheritance, and real estate issues, consultations on the opening of enterprises, and so on. People always turn to lawyers when life brings them face to face with the state bureaucracy. The most indicative here is the registration of enterprises - here lawyers are contacted in 93 cases out of 100. Large enterprises wish to focus on their core business in order not to lose their core competence. Therefore, they prefer to outsource their legal activities to third-party companies.
Every lawyer sooner or later asks about the possibility of opening his own legal services firm. This type of activity is not subject to licensing, therefore, anyone can do it. The task of an entrepreneur is to hire intelligent staff and competently draw up a business plan for a law firm. An example with calculations is given in this article, it will help you organize your business correctly in order to count on a quick return on the project and a stable income.
A law firm is an organization that provides legal services. This type of activity can have both a narrow specialization and a wide range of services.
The firm's clients can also be individuals or organizations. To determine the direction of work and strategy, the entrepreneur must study the demand market and competitors.
A more interesting direction when opening a legal business from scratch today is the service of legal entities. This niche can be occupied due to the absence of a large number of competitors. In the long term, it is expedient to offer a wide range of legal services to clients.
Moving from a narrow specialization to a wide range of services allows you to minimize costs at the initial stage of starting a business, otherwise the company will need a large number of qualified specialists.
Formalities and Documentation
Starting a law firm from scratch does not require a license. Exceptions are provided for advocacy in criminal law, private detective and notarial activities. The legal form of activity that is suitable for the provision of legal services is an individual entrepreneur or LLC. Economic activity code - 74..
Premises and equipment
Before opening a legal office, you need to rent a suitable premises. This type of activity does not imply the presence of specific or production equipment, therefore there are few requirements for the office - a convenient location for clients' access, compliance with fire control standards. The following items will be required as necessary equipment:
- Work furniture for 2-3 employees - tables and chairs, wardrobes, cabinets, shelves and shelves for storing documents;
- Furniture for visitors - chairs , hanger, coffee table;
- Safe for special documents and printing;
- Computers with software and Internet access. You will also need specialized programs and office equipment;
- Phones, including landline;
- Specialized literature - textbooks, codes, articles.
The standard service by a law firm to individuals on general issues has its pros and cons. Legal marriage and related issues, support of real estate transactions, legal problems and other services are always in demand.
The desire to open your own law firm sooner or later comes to every lawyer. This type of activity is not licensed, therefore, anyone can engage in this entrepreneurial project. The main task of a businessman is to hire competent personnel and correctly draw up a business plan for a law firm with calculations. In the example below, we will look at how to properly organize this type of business in order to get a stable income and a quick return on the project.
Market and Competitor Analysis
First of all, it is very important to understand what a law firm is. A legal company is an organization that provides legal services to the public. This type of activity can be both highly specialized and aimed at broad activities. The clients of the company will be individuals or organizations. If you want to determine the direction of work correctly and without mistakes, as well as a business development strategy, study the demand market and competitors.
The modern legal services market is very wide. It covers a lot of areas, therefore, before starting the registration of an entrepreneurial project, it is recommended to choose the type of activity. The first thing you should understand is that a start-up company will not be able to cover the full range of types of legal assistance. There is no specific advice regarding the choice of the number and focus of the services provided. Some experts believe that when entering the market, one should not be scattered into several directions.
It is better to acquire a good business reputation in one or several types of activities, and only then expand the range of services. This is a good development strategy that will allow you to establish yourself in the market and occupy your own niche. However, it is important to understand that by opting for just such a strategy, you run the risk of facing a large number of competitors.
When choosing a highly specialized law firm, most clients will prefer experienced organizations. In this regard, it would be advisable for a young company to give preference to versatility. The company's specialists can provide services in traditional directions:
- legal assistance to large and small businesses;
- legal assistance to individuals;
- debt collection;
- resolving legal issues;
- tax assistance.
The above are the main popular areas of work of legal organizations. It should be noted right away that one of the most interesting areas is servicing legal entities. An aspiring entrepreneur can fill this niche quickly and successfully due to the low level of competition. The most popular and profitable services of a law firm are: solving court issues, problems with the tax service, inheritance issues. The presented practices occupy more than 50% of the entire legal structure.
With the development of information technology, new types of services appear. If you want fast development for your company, you can give preference to one of these areas. For example, a very promising legal area is helping entrepreneurs who are engaged in e-commerce. Other areas are also in demand, for example, migration, business restructuring, and intellectual property. Analyzing the situation in your city and region will be the best option for choosing a direction. If you offer a customer a unique service, you can expect rapid demand.
Any modern legal organization tries to establish long-term contracts with its clients, therefore it is ready to offer consumers a wide range of legal services and the possibility of subscription services. This will help protect their interests and promptly resolve controversial issues. This will become available with the gradual expansion of the company's services with a focus on customer requests.
Don't think that you can open a law firm only if you have a specialized education. A legal organization is a good type of business for entrepreneurs without such education. However, in this case, you must deal exclusively with administrative matters. If you do not have a specialized education, be prepared for difficulties. Firstly, it will be very difficult for you to control the quality of staff work and to be tightly within the business processes of your company. Secondly, this is not a line of business that will operate independently, this also needs to be understood.
Organizational and legal issues for opening a legal firm
The dream of any lawyer is to have your own business. To make this possible, you need to make some effort and create a step-by-step and well-thought-out business plan for a law firm. In this case, an individual entrepreneurial strategy and accurate financial calculations will be required. With proper preparation for opening, a business will have a high level of profitability.
Composition and features of the project
The essence of the future law firm's activities is to provide comprehensive services of the appropriate direction to individual clients and organizations on all existing legal issues.
The project is a plan of an organization and a legal firm with a financial turnover for a period of 2 years.
Key financial indicators presented in the calculations of the business plan
Main sections of the business plan
In the video: How to open your legal business correctly
First, it is worth considering the strategically important parameters of the future business. Including choosing a suitable direction of legal services: working with organizations or individuals. Also, as an additional service, you can offer options for restructuring the debt of citizens and protection from collectors.
According to this project, the following customer groups belong to the target audience:
- - individuals - citizens of the country and foreigners;
- - organizations - residents of the Russian Federation and foreign companies operating both in Russia and abroad ...
There are several main goals of the business plan:
Investments Profit Payback 403. 00150.00 per month10 months
In this article we will consider a business plan of a law firm with all the necessary calculations. This niche is always in demand and even in a small town you will always have some kind of customer flow.
The law firm offers clients services related to the legal relationship between clients and professionals. The effectiveness of cooperation depends on the understanding of the services themselves, the laws on the basis of which the legal business market develops. This is taken into account when organizing your own business. Before opening a law firm, you should understand what the niche is. This will help you assess your capabilities and prioritize.
Legislation is quite changeable and contradictory, while most of the population does not have a high level of legal literacy. It is not surprising that the business of providing quality legal services is actively flourishing. This relevance is dictated by modern life. Various situations may arise when professional help is urgently needed. In the near future I want to open a law firm, so they collect all the information regarding such activities.
Specialists who are attentive to their clients, know the legal framework, are in demand. They are approached with the most sensitive questions. Timely professional help helps to avoid tragic situations.
The activity is based on the provision of qualified legal assistance. Experts are ready to meet the needs of customers. Cooperation is carried out on mutually beneficial terms with all persons. Services are provided for a fee, prices are formed taking into account the professionalism of the specialist, the complexity of the case. To quickly open a law firm from scratch, you need to study the market for such services. After that, draw up a business plan and start implementing it.
The modern market dictates its own requirements. As a result, lawyers appeared with a technical, medical, financial, and accounting bias. This allows each client to find a suitable specialist for themselves who will help resolve a difficult situation, taking into account the legislative framework.
This is how a lot of players appeared on the market who do not have a legal education to work. They offer their clients a range of services, which include legal assistance, services related to real estate trade, work related to finance, taxes, registration. They began to be called informals. These are the players who were able to take a leading position in the modern market. As a result, they took away some of their clients and earnings from lawyers and small law firms. Such informals now represent the interests of clients in court proceedings, in various institutions, government agencies. They are ready to advise any client, help to draw up documents, select software. There is high competition among lawyers, which is the reason for the search for new conditions for the provision of high-quality and affordable services. The winners are mainly those who improve their knowledge, constantly attract customers, use advertising, a creative approach, and marketing.
The situation looks like a young law firm is able to develop and take a leading position. To do this, you need to collect an extensive client base, select qualified personnel. This is the only way to get a good profit. It is important to adhere to standard business requirements and have a commercial acumen.