How to Develop a Law Firm Strategic Business Plan

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So, your firm is looking for help in formulating a new law firm strategic business plan to run your practice like a business!

Presented in this article is a step-by-step law firm strategic plan that will allow you to change your practice from selling documents into a service-oriented law firm that abundantly satisfies clients´ needs by utilizing systems, automation through legal "niches" or "specialties." The proposed lawfirm strategic plan will decrease the time you must spend to accomplish your clients´ goals at the same time it will decrease the time you personally must invest – thus leaving you with more time for your family, fun and personal pursuits. Through the "automation" mentioned, you may well also find that your lawfirm strategic business plan will increase your profits even while lowering costs you must charge to your clients.

What could be better than this scenario? So, let´s get started:

Almost all law firm practices can shift some of their productivity resources into estate planning, legacy planning, living trust creation, solving elder care problems and the drafting of wills because knowledge of these areas is almost universal in the legal profession.

Thus, the law firm strategic business plan discussed herein is framed in terms of a classic estate planning practice but it can easily be adapted to many other specialties or types of practice.

What is a Law Firm Strategic Business Plan?

The "classic" business plan consists of an analysis of facts and financial projections. About.Com defines it as "… a document that summarizes the operational and financial objectives of a business and contains the detailed plans and budgets showing how the objectives are to be realized." A different view is found at Entreupreuner.Com, which defines a business plan as a "… written document describing the nature of the business, the sales and marketing strategy, and the financial background, and containing a projected profit and loss statement. A business plan is also a road map that provides directions so a business can plan its future and helps it avoid bumps in the road. The time you spend making your business plan thorough and accurate, and keeping it up-to-date, is an investment that pays big dividends in the long term." Finally, Wikipedia defines a business plan as "…a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals."

Thus, there is clearly a wide range of differences between what a business plan is required to obtain. Some require financials, budgets and projections of future operation while some include only formality in setting forth business goals.

Our discussion of Law Firm Business Plans involves the second type: What we are referring to as a "Law Firm Strategic Business Plan" that shows lawyers in very short order how to convert their practice into highly-automated, very profitable 3-4 day-a-week operations providing greater joy than ever imagined along with more rewarding client involvement.

21st Century Law Firm Strategic Business Plan:

The steps to "become much more than just a draftsman" of living trusts and wills are:

• Become current with your jurisdiction´s estate planning minimum rules of practice. This can be done through, among many others, your Bar´s MCLE courses, or private organizations such as AAEPA, a-lawyer based organization which provides in-depth estate planning education.



• Automate your practice so that repetitious tasks can be completed as quickly, and efficiently, as possible. This is often possible utilizing dedicated-purpose estate planning software for estate planning for law firm business planning.
  
  



• Training your staff to operate the software and master the systems that you have implemented.



• While everything mentioned here can be done on your own, great savings in both time and resources can be realized by joining a training and educational organization dedicated to improving membership knowledge and productivity all the while increasing client satisfaction. Such groups can be found as parts of state or local bar associations or professional trade groups Integrity Marketing Solutions (which provides marketing assistance only) and the American Academy of Estate Planning Attorneys(which provides comprehensive technical and marketing training as well as legal research resources). The Academy's core philosophy is about creating business and workflow "systems" that allow the attorney to have a business—not be the business.
  
  



• After mastering the above steps, consider further refining of your chosen specialty.

For example, an estate planning attorney is confronted daily by the often-complex task of marshalling the assets of a client. If your jurisdiction permits it, and if you have the inclination to further specialize your efforts, you might consider becoming involved in also providing financial services through a program like that offered by the Academy assuming your jurisdiction´s rules permit this. In some cases, attorneys may realize substantial rewards through an affiliation with an established financial services firm.


Assuming your jurisdiction permits it, with proper client disclosures, as a fully licensed financial services provider, or in conjunction with an established firm, you can execute the course of action you have laid out in the estate planning phase while monitoring performance and value in relation to the client´s overall financial plan — a perfect complement to the legal assistance you already provide with an almost unlimited wealth creation potential!

Example: One practicing attorney wrote, "We broke off from our prior down-town firm and joined the Academy in 1996. One of the best things about the Academy that I have seen is the introduction of financial services to our firm. We were able to put both our kids, our daughter through Southern Cal and our son through University of Pennsylvania, solely based on revenue from the financial services, which is a part of the firm but it´s an add-on with very little intensive work by us in the law firm."

Systems to Rely On

Whether you opt to rely on the law practice strategic business plan systems such as offered by the Academy or create such systems on your own, you will likely find having access to the following type of support and products greatly rewarding for both your clients and your law firm business plan implementation:

• Licensing preparation and support—this will include Series 7, Series 66 and a fixed product insurance license



• Step-by-step implementation instructions for adding the Financial Services systems to your practice



• Continuous training and professional growth for attorneys and planners



• Small group and private business coaching on implementation progress



• Attorney support for specific client needs, including "case design" for complex client situations paid for either on a case-by-case basis or some form of monthly subscription – both of which require speedy response time to your inquiries

Services to Which You May Want Access

Whether your jurisdiction permits direct involvement in financial services or requires independent licensed transactions, so long as you are permitted to be involved directly in the transaction itself, you may find the experience rewarding. In such cases, here is a list of services you may find helpful:

• Investment Planning



• Insurance Services, available from various companies (beware of "locked-in financial services that offer only investments from one, or a few, insurers)



• Asset Management



• Retirement Planning Services



• 401k Programs



• Access mutual funds (again, beware of "locked-in financial services that offer only investments from one, or a few, mutual funds)



• Instant information about accounts and quotes, plus illustration software

When to Introduce Financial Services?

Timing your introduction of financial services can easily be determined by analyzing the following areas of your existing practice:

• Review the current law firm financial position. Each number on the firm´s Profit & Loss Statement is reviewed to get a look at the overall financial health of the law firm. The firm needs to be in a stable position with revenue sources working, long-term staff not turning over and workflow systems in place. The timing of introducing any new service should be discussed in strategic planning meetings.



• Decide on your approach.
  
  
  
  
  
  • Own a portion of a financial services company with a veteran financial services expert who handles all aspects of the financial services meetings, product information and financial services maintenance. Fees are split with the other professional you establish this business with. As the attorney, you would conduct the estate planning meetings and "refer" (after appropriate disclosure) to your financial services partner.
  
  
  
  • Be the estate planning attorney and the financial services expert. This is not typically recommended as very few attorneys have the background to be successful in both areas. Just getting your license does not turn you into a financial services expert. Though it can be very successful, mixing the two completely different conversations (estate planning and financial planning) in client meetings can confuse clients and lose both types of business.



• Having an estate planning client base in place is very helpful. Depending on how you incorporate financial services in your firm, the best place to introduce your new service is to your existing client base. Making this introduction needs to be accomplished in a very specific and intentional way including providing your clients free seminars and marketing materials with the objective of laying a foundation of competence and a superstructure of informative details.



• Make sure that you investigate bar rules and requirements in your area. Often the right Broker Dealer can assist you with finding the answers to questions you will likely have about whether or not it is acceptable for a law firm or attorney to be affiliated in any way with a financial services company. You will also need to be very specific in the development of your "disclosure" to the client about the role you play in financial services. Academy members share various tools with each other such as fee agreement and disclosure language.

The 12 Recommended Steps to Getting Started!

The following steps are important to consider when implementing a wealth preservation or creation program through following the law firm business plan set forth above:

Investigate the rules and regulations of your jurisdiction. Such may be found from your bar association, the securities agency of your state and professional organizations such as the American Bar Association or the Academy. Before taking any significant step – including discussing this option with clients – ensure that you are in full compliance with all applicable laws and regulations. You should consider retaining the services of experienced counsel who represent lawyers before bar association proceedings to ensure that you are following all of the rules.

     1.   Investigate the rules and regulations of your jurisdiction. Such may be found from your bar association, the securities agency of your state and professional organizations such as the American Bar Association or the Academy. Before taking any significant step – including discussing this option with clients – ensure that you are in full compliance with all applicable laws and regulations. You should consider retaining the services of experienced counsel who represent lawyers before bar association proceedings to ensure that you are following all of the rules.


     2.   Associate with a Broker Dealer. Look for companies that provide the type of service and support already discussed in this law firm business plan or join a professional firm such as the Academy;


     3.   Order study materials for the Series 7 & 66 through the Academy's referrals or a licensed broker dealer;


     4.   Schedule Series 7 Review Class, 6 weeks prior to your test;


     5.   Schedule Series 7 Exam to occur the week following the Review Class;


     6.   Fill out and submit paperwork to NASD;


     7.   Study and read the book for the Series 7 exam;


     8.   Take the Series 7 Review Class;


     9.   Take and pass Series 7 Exam;


   10.   Sign up for the Series 66 Exam at the Series 7 Exam and schedule it within the next 2 weeks;


   11.   Study for, and then take and pass the Series 66 Exam;


   12.  Immediately take the State Insurance Test;

Remember, finally, to follow through by ensuring that your licenses are activated and that you actually implement your new-found powers of wealth creation to both the benefit of your clients and your law firm.

While the above article presents a law firm strategic business plan for consideration, it is simply one of many possibilities.  You should consider your own situation and capabilities closely before embarking upon any complex lawfirm business plan and should, also, consider discussing your ideas with competent business planning counsel.