A personal injury law firm represents people who have been physically, financially, or emotionally harmed because of another person’s or organization’s negligence, wrongful conduct, defective product, unsafe property, or other legally actionable behavior.

Unlike many law firms, plaintiff-side personal injury practices commonly work on a: Contingency fee.

This generally means the client does not pay an ordinary hourly attorney fee while the claim is pending. Instead, the law firm earns an agreed portion of a successful:

• Settlement
• Judgment
• Other recovery.

This creates a very different business model from an hourly-billing law firm. John McPherson® LLC may spend significant amounts on:

• Employees
• Medical records
• Investigators
• Expert witnesses
• Depositions
• Litigation
• Marketing

months or even years before a major case produces revenue. For that reason, a successful personal injury practice needs considerably more working capital than the cost of simply:

• Renting an office
• Buying computers
• Creating a website.

John McPherson® LLC will therefore be managed as both: A professional legal practice and: A carefully capitalized portfolio of contingency-fee cases.

Entrepreneurs reviewing the broader process of establishing a legal practice can also read our guide on how to start a law firm.

Steps on How to Write a Personal Injury Law Firm Business Plan

1. Executive Summary

John McPherson® LLC is a proposed plaintiff-side personal injury law firm headquartered in New York City.

The firm will be founded by: John McPherson, Esq. an experienced New York attorney whose practice will concentrate on representing injured individuals and families.

The firm will initially operate from approximately 4,500 square feet of professional office space in Manhattan. The office will contain:

• Reception
• Client consultation rooms
• Attorney offices
• Paralegal/case-management workspace
• Intake center
• Conference/deposition room
• Records and settlement-account workspace
• Administrative office.

John McPherson® LLC will initially handle matters including:

• Motor vehicle accidents
• Pedestrian accidents
• Bicycle accidents
• Premises liability
• Slip-and-fall accidents
• Construction accidents
• Third-party workplace injury claims
• Catastrophic injuries
• Wrongful death
• Defective products
• Dog attacks
• Selected medical-malpractice matters.

The firm will not attempt to accept every inquiry. Personal injury profitability depends heavily on:

• Case selection
• Liability
• Damages
• Available insurance or assets
• Litigation cost
• Timing
• Staff productivity.

The firm will therefore decline matters that:

• Lack a viable legal theory
• Have insufficient damages relative to expected litigation expense
• Present unmanageable conflicts
• Have expired or dangerously compromised deadlines
• Cannot be handled competently with available resources.

John McPherson® LLC will differentiate itself through:

• Selective case intake
• Fast client response
• Strong litigation preparation
• Modern case-management technology
• Detailed client communication
• Professional medical-record and lien management
• Willingness to litigate appropriate cases rather than settling every file prematurely.

The initial staff will include approximately:

• John McPherson – Founder/Managing Attorney
• Senior Trial Attorney
• 2 Associate Attorneys
• 3 Paralegals/Case Managers
• Intake Manager
• 2 Intake Specialists
• Medical Records/Lien Coordinator
• Office/Finance Manager
• Marketing/Community Relations Manager
• Administrative Assistant.

The firm will require approximately: $2,400,000 in startup capitalization. The substantial capital requirement reflects:

• New York City office expense
• Professional payroll
• Case acquisition
• Case disbursements
• Long contingency-fee collection cycles.

Projected financial performance is:

Revenue will be inherently uneven. One large settlement can materially affect a particular month or fiscal year.

Management will therefore avoid operating the business as though every signed case produces predictable monthly revenue.

2. Company Profile

a. Our Legal Services

Motor Vehicle Accidents

The firm will represent eligible clients injured in:

• Car crashes
• Taxi accidents
• Rideshare accidents
• Truck accidents
• Commercial vehicle crashes
• Multi-vehicle collisions.

Cases may involve issues such as:

• Negligent driving
• Distracted driving
• Unsafe lane changes
• Failure to yield
• Commercial-driver liability
• Vehicle ownership liability.

Pedestrian Accidents

New York City creates substantial pedestrian exposure because of:

• Dense intersections
• Delivery vehicles
• Taxis
• Buses
• Bicycles
• Commercial traffic.

The firm will investigate:

• Traffic signals
• Vehicle movement
• Witnesses
• Video evidence
• Police records
• Medical evidence.

Bicycle and Micromobility Accidents

Potential matters may involve:

• Bicycles
• E-bikes
• Delivery riders
• Other micromobility users.

Premises Liability

The firm may represent people injured because of allegedly unsafe property conditions involving matters such as:

• Slip-and-fall accidents
• Trip hazards
• Defective stairs
• Unsafe flooring
• Falling objects
• Inadequate maintenance
• Other dangerous premises conditions.

The intake team will investigate:

• Property ownership
• Control
• Notice
• Maintenance records
• Photographs
• Video
• Witnesses.

Construction Accidents

Construction injury litigation can involve complex relationships among:

• Workers
• Property owners
• General contractors
• Subcontractors
• Equipment companies
• Insurers.

Potential cases may involve:

• Falls from heights
• Scaffolds
• Ladders
• Falling objects
• Unsafe equipment
• Site conditions.

These matters may require experienced litigation counsel and substantial discovery.

Third-Party Workplace Injury Claims

John McPherson® LLC will distinguish between:

• Workers’ compensation issues
• Potential third-party liability claims.

Where necessary, the firm may coordinate with separate workers’ compensation counsel while prosecuting an appropriate third-party case.

Catastrophic Injury

The firm will selectively pursue high-value cases involving injuries such as:

• Traumatic brain injury
• Spinal cord injury
• Amputation
• Severe burns
• Permanent neurological injury
• Major orthopedic disability.

These cases may require experts in areas including:

• Medicine
• Life-care planning
• Vocational rehabilitation
• Economics
• Accident reconstruction.

Wrongful Death

The firm will represent qualifying estates and family representatives in cases involving fatal injuries.

These cases require particular care because clients may be dealing simultaneously with:

• Grief
• Estate administration
• Financial uncertainty
• Litigation.

Product Liability

The firm may pursue selected cases involving allegedly defective:

• Consumer products
• Industrial equipment
• Vehicles
• Machinery
• Safety products.

Because product-liability cases can be expert intensive, the firm will be selective.

Dog Attack Cases

Potential cases may involve:

• Bites
• Knockdowns
• Scarring
• Other serious injuries.

Selected Medical Malpractice

Medical-malpractice cases will be accepted selectively. Potential matters may involve:

• Surgical errors
• Diagnostic failures
• Birth injuries
• Medication errors
• Other serious alleged departures from appropriate care.

These cases are expensive and expert intensive. The firm will not accept a medical-malpractice claim merely because:

• A patient is unhappy with an outcome
• A medical complication occurred.

The case must receive appropriate professional review.

b. Nature of the Business

John McPherson® LLC will operate as a:

Plaintiff-side contingency-fee litigation practice.

The majority of clients will be:

• Individuals
• Families
• Estates.

The firm will not operate as:

• An insurance-defense firm
• A general corporate law practice
• A criminal-defense practice.

c. The Industry

The company operates in the:

• Legal services industry
• Plaintiff litigation sector
• Personal injury and tort litigation market.

d. Mission Statement

“At John McPherson® LLC, our mission is to provide injured New Yorkers and their families with disciplined, ethical, compassionate, and determined legal representation through careful case selection, thorough investigation, strong litigation preparation, responsive client communication, and advocacy focused on obtaining the recovery each client’s individual circumstances justify.”

e. Vision Statement

“John McPherson® LLC envisions becoming one of New York City’s most respected independent plaintiff-side injury firms, known for trial readiness, ethical marketing, excellent client service, strong case results, disciplined case economics, and a team capable of handling serious injury litigation at an institutional level.”

f. Our Tagline

“John McPherson® – Serious Injuries. Serious Representation.”

g. Legal Structure of the Business

The public-facing brand in this plan is:

John McPherson® LLC.

However, the practice of law is a professional service in New York. Before launch, the entity will therefore be organized through a structure authorized for attorneys, such as a:

• Professional Service Limited Liability Company
• Professional Corporation
• Other lawfully permitted professional law-firm structure.

If the professional LLC structure is selected, the firm’s final legal name and filings will comply with New York’s professional-service entity requirements.

For example, the registered entity may need to use an approved form such as: John McPherson® Law PLLC while retaining John McPherson® as the principal brand.

The firm will not rely on an ordinary commercial LLC structure if that structure does not satisfy New York requirements for the practice of law.

h. Organizational Structure

The initial organizational chart will include:

• Managing Attorney
• Senior Trial Attorney
• Associate Attorneys
• Paralegals/Case Managers
• Intake Manager
• Intake Specialists
• Medical Records/Lien Coordinator
• Office/Finance Manager
• Marketing/Community Relations Manager
• Administrative Assistant.

i. Ownership Structure

John McPherson will initially own: 100 percent of the law firm. The firm will not raise startup equity by selling ownership to non-lawyer investors. New York’s professional-conduct rules restrict:

• Sharing legal fees with non-lawyers
• Non-lawyer participation in ownership arrangements that compromise professional independence.

Future ownership interests may therefore be offered only in a structure permitted by New York law and professional-conduct rules.

Eligible attorney partners may eventually be admitted into the firm. Non-lawyer employees may receive lawful:

• Salaries
• Performance bonuses
• Permitted retirement/profit-sharing compensation.

However, compensation systems will not improperly give nonlawyers ownership of client legal fees.

3. SWOT Analysis

a. Strengths

• New York City Market: The firm operates in a densely populated market with substantial transportation, construction, commercial, and pedestrian activity.
• Contingency Model: Clients can retain the firm without paying ordinary hourly attorney fees upfront.
• Trial Capability: Cases are prepared with litigation in mind rather than solely for quick settlement.
• High-Value Case Potential: Serious injury matters can generate substantial legal fees when successfully resolved.
• Referral Potential: Satisfied former clients and attorneys can become valuable referral sources.
• Technology: Modern case management can improve deadlines, communication, document management, and reporting.

b. Weaknesses

• Revenue can take years to collect.
• The firm must fund payroll before cases mature.
• Case expenses can be substantial.
• Not every accepted case produces a recovery.
• New York legal advertising is highly regulated.
• Attorney and paralegal payroll is expensive.
• Client acquisition in New York City is highly competitive.

c. Opportunities

• Motor vehicle litigation
• Pedestrian cases
• Construction accidents
• Catastrophic injury
• Multilingual client intake
• Attorney referral networks
• Digital intake
• Client education content
• Additional New York offices.

i. Industry Size and Demand

Personal injury litigation represents a substantial segment of legal services because accidents and negligence occur across many areas of daily life. Potential claims arise from:

• Transportation
• Property ownership
• Construction
• Healthcare
• Consumer products
• Commercial activity.

However, a large theoretical market does not mean every accident produces a viable case.

The firm’s real addressable market consists of people whose matters have sufficient:

• Liability
• Causation
• Damages
• Ability to recover compensation.

ii. Is the Industry Growing or Declining?

Personal injury litigation is a mature legal practice rather than a new industry.

The major change is how potential clients find and evaluate lawyers. Clients increasingly research firms through:

• Search engines
• Online reviews
• Video
• Attorney websites
• Social media
• Referrals.

The strongest modern firms therefore combine:

• Legal capability
• Technology
• Fast intake
• Strong digital reputation.

iii. Future Trends

Important trends include:

• AI-Assisted Case Management: Technology can assist with document organization, summaries, chronology preparation, and internal workflows.
• Human Attorney Review: Attorneys will remain responsible for professional judgment and legal work.
• Faster Intake: Potential clients increasingly expect immediate responses rather than waiting days for an attorney callback.
• Data-Driven Case Management: Firms increasingly track case age, acquisition channel, value, expense, stage, and expected resolution.
• Digital Client Communication: Secure messaging and electronic document execution will become increasingly common.
• Cybersecurity: Personal injury firms hold medical, financial, and settlement information that requires strong protection.
• Marketing Compliance: Aggressive online advertising creates continuing ethical and regulatory risk.

iv. Existing Niches

Personal injury contains numerous specialties, including:

• Automobile accidents
• Truck accidents
• Construction accidents
• Premises liability
• Medical malpractice
• Product liability
• Catastrophic injury
• Wrongful death
• Mass torts
• Defective drugs and devices.

John McPherson® LLC will initially focus primarily on:

• Motor vehicle/pedestrian claims
• Premises liability
• Construction injuries
• Catastrophic injury
• Wrongful death.

v. Can You Sell a Franchise in the Future?

A conventional retail franchise model is not appropriate. Law practice depends on:

• Attorney licensing
• Professional independence
• Ethical rules
• Law-firm ownership restrictions.

Expansion will therefore occur through:

• Additional attorney-owned offices
• Attorney partnerships
• Mergers with other law firms
• Properly structured co-counsel relationships.

d. Threats

• Heavy competition
• High advertising costs
• Unsuccessful litigation
• Attorney malpractice claims
• Cyberattacks
• Missed deadlines
• Ethics violations
• Changes in tort law
• Staff turnover
• Cash-flow shortages.

i. Who are the Major Competitors?

Competition includes:

• Large national plaintiff firms
• Major New York trial firms
• Regional personal injury firms
• Small boutique litigation practices
• Mass-market advertising firms.

John McPherson® LLC will not attempt to outspend every national law firm on advertising. The firm will compete through:

• Attorney accessibility
• Case preparation
• Client communication
• Referrals
• Reputation
• Selective digital marketing.

ii. Policies, Regulations and Compliance

Legal compliance will be one of the most important operating functions of the firm.

Attorney Licensing

Every attorney practicing New York law through the firm will maintain the authority required to practice in New York.

New York attorneys must maintain their applicable biennial attorney registration.

Professional Independence and Ownership

John McPherson® LLC will not:

• Sell ownership to unqualified nonlawyer investors
• Share legal fees improperly with nonlawyers
• Permit marketing companies or finance providers to control professional legal judgment.

Debt financing may be used without giving lenders control over:

• Case strategy
• Settlement decisions
• Client relationships.

Contingency Fee Agreements

Personal injury contingent-fee arrangements will be documented in writing.

For qualifying ordinary personal injury and wrongful death matters, New York rules permit specified fee schedules.

A commonly used arrangement can provide for a fee not exceeding: 33⅓ percent under the applicable schedule, subject to the governing court rules and properly drafted retainer agreement.

The firm’s retainer will clearly explain:

• How attorney compensation is calculated
• How litigation expenses are treated
• What happens if there is no recovery
• The client’s selected expense method where applicable.

Medical Malpractice Fee Schedule

Medical, dental, and podiatric malpractice contingency fees are subject to a separate New York statutory sliding scale.

Medical-malpractice files will therefore be modeled separately from ordinary personal injury cases.

Retainer and Closing Statements

Contingent-fee personal injury matters subject to applicable First and Second Judicial Department requirements will have the appropriate retainer statements filed with the Office of Court Administration.

Required closing statements will also be prepared and filed when cases conclude. The firm’s case-management system will create:

• Retainer-filing reminders
• Closing-statement tasks
• Attorney compliance review.

Settlement and Client Funds

Client and third-party funds will never be treated as ordinary firm cash. The firm will maintain appropriate:

• Attorney trust
• Attorney escrow
• IOLA accounts

where required. Settlement proceeds will be handled separately from:

• Payroll
• Rent
• Marketing
• Other operating expenses.

The firm will maintain detailed settlement ledgers identifying:

• Amount received
• Client
• Case
• Attorney fee
• Case expenses
• Liens
• Client distribution.

No Commingling

Operating money and client money will not be commingled. Settlement funds will not be used temporarily to:

• Make payroll
• Pay advertising
• Cover business cash-flow shortages.

Advertising

Advertising must remain:

• Truthful
• Accurate
• Non-misleading
• Compliant with New York professional-conduct rules.

The firm will not advertise statements such as:

• “We guarantee $1 million.”
• “We always win.”
• “The best injury lawyers in New York.”

unless a statement is legally permissible and supported in the manner required by applicable rules.

Specific-Incident Solicitation

The firm will not use prohibited targeted solicitation immediately after a particular accident or disaster.

New York imposes restrictions on solicitations relating to specific incidents involving personal injury or wrongful death, including a waiting period that generally prevents covered solicitation during the first 30 days after the incident.

The marketing department will maintain procedures preventing employees or vendors from attempting to circumvent this restriction.

Lead Generation

Marketing vendors will be paid through ethically permissible arrangements. The firm will not enter into disguised arrangements under which:

• Nonlawyers receive an improper percentage of legal fees
• A lead generator controls which settlements the firm accepts
• A marketing company exercises legal judgment.

Attorney Referrals

Fee divisions with other lawyers will only occur where permitted by professional-conduct requirements. Required client disclosures and consent will be documented.

Confidentiality and Cybersecurity

The firm will maintain protections for:

• Medical records
• Social Security numbers
• Financial information
• Settlement details
• Attorney-client communications.

Security controls will include:

• Multi-factor authentication
• Device encryption
• Secure backups
• Restricted user permissions
• Phishing training
• Incident-response procedures.

4. Marketing Plan

a. Target Audience

The primary market consists of people injured in New York City and surrounding markets because of potential third-party fault. The firm will not target clients primarily by:

• Income
• Education
• Luxury purchasing power.

A plaintiff-side contingency practice is more concerned with:

• Liability
• Injury severity
• Available recovery
• Legal deadlines.

i. Motor Vehicle Accident Victims

The firm will target appropriate inquiries involving:

• Drivers
• Passengers
• Pedestrians
• Cyclists.

ii. Construction Workers

Construction injuries can create significant third-party claims and will be an important practice category.

iii. People Injured on Commercial Property

Potential clients include people injured at:

• Apartment buildings
• Stores
• Commercial properties
• Public-access premises.

iv. Families Facing Catastrophic Injury or Wrongful Death

These matters will receive senior-attorney review because of their:

• Complexity
• Potential value
• Emotional sensitivity.

v. Multilingual Communities

New York City’s diverse population creates a practical need for multilingual intake.

The firm may initially provide staff or qualified language support for commonly requested languages.

b. Advertising and Promotion Strategies

i. Search Marketing

Digital campaigns may target people searching for services such as:

• New York City personal injury lawyer
• Car accident lawyer
• Construction accident lawyer
• Slip-and-fall attorney.

All campaigns will undergo attorney compliance review.

ii. Search Engine Optimization

The website will publish educational content addressing:

• Types of injury claims
• What happens after an accident
• How contingency representation works
• What information an attorney may need to evaluate a case.

Content will educate rather than guarantee outcomes.

iii. Former Client Referrals

Satisfied clients can become an important acquisition channel. The firm will earn referrals primarily through:

• Communication
• Professional treatment
• Competent representation
• Reliable settlement accounting.

iv. Attorney Referral Network

The firm will build relationships with attorneys practicing in areas such as:

• Criminal law
• Family law
• Real estate
• Immigration
• Estate planning
• Workers’ compensation.

These attorneys may encounter clients who need personal injury representation.

v. Community Education

John McPherson® LLC may sponsor or participate in:

• Safety education
• Community legal-information events
• Bar association activities
• Professional networking.

vi. Reputation Management

Management will track:

• Client reviews
• Complaints
• Response times
• Communication quality.

c. Pricing Strategy

The firm’s primary pricing model will be:

Contingency compensation.

The firm will not use:

• Cost-plus pricing
• Dynamic pricing
• Retail-style bundle pricing

for ordinary personal injury litigation.

The firm will never guarantee:

• Settlement amount
• Trial result
• Time required to resolve the claim.

5. Case Acquisition and Client Intake Plan

a. Lead Sources

Potential cases will come through:

• Search advertising
• Organic search
• Former clients
• Attorney referrals
• Community relationships
• Website inquiries
• Telephone intake.

b. Intake Response

Personal injury leads can be time sensitive.

The firm will target:

• Immediate acknowledgement during staffed hours
• Rapid intake screening
• Attorney review of promising cases.

c. Preliminary Case Screening

Intake employees will gather facts concerning:

• Date of incident
• Location
• Potential defendants
• Injuries
• Treatment
• Insurance
• Existing representation
• Known deadlines.

Non-lawyer intake staff will not independently give legal opinions.

d. Attorney Case-Acceptance Review

Each potential case will be scored using factors such as:

e. Retainer Process

Accepted clients will receive:

• Written retainer agreement
• Required disclosures
• Client-rights information where applicable
• Explanation of expenses
• Contact information for the assigned legal team.

Electronic signatures may be used appropriately.

f. No Guarantee Policy

No employee will promise:

• A particular settlement
• A guaranteed win
• A specific completion date.

g. Client Communication

The firm will establish standards such as:

• Calls returned promptly
• Material developments communicated
• Settlement offers promptly discussed
• Clients kept informed of litigation milestones.

The decision to accept or reject a settlement remains the client’s decision after appropriate legal advice.

6. Operational Plan

The office will generally operate:

• Monday – Friday: 8:30 AM – 6:30 PM.

A staffed or professionally managed intake process will handle inquiries outside normal hours.

a. What Happens During a Typical Day?

Attorneys may:

• Attend court
• Take depositions
• Prepare motions
• Negotiate claims
• Review medical records
• Meet clients
• Prepare cases for trial.

Paralegals and case managers may:

• Communicate with clients
• Request records
• Track treatment
• Prepare document packages
• Maintain case calendars.

Intake employees:

• Answer inquiries
• Screen potential matters
• Schedule consultations.

b. Case Workflow

A typical matter may move through:

1. Lead received.
2. Conflict check.
3. Intake screening.
4. Attorney evaluation.
5. Retainer.
6. Immediate deadline review.
7. Investigation.
8. Insurance identification.
9. Medical-record collection.
10. Damages development.
11. Pre-suit negotiation where appropriate.
12. Litigation.
13. Discovery.
14. Depositions.
15. Expert work.
16. Mediation/settlement negotiations.
17. Trial if required.
18. Settlement accounting or judgment collection.
19. Lien resolution.
20. Client distribution.
21. Closing statement and file closure.

c. Deadline Control

The firm will use centralized docketing. Every case will have documented deadlines for matters such as:

• Statutes of limitation
• Municipal notice requirements
• Court appearances
• Discovery
• Motions
• Expert disclosure.

Critical deadlines will not exist solely in an individual attorney’s personal calendar.

d. Case Management Technology

The system will track:

• Client
• Defendants
• Insurance
• Injuries
• Treatment
• Case value range
• Expenses
• Settlement offers
• Deadlines
• Responsible attorney
• Case stage.

e. Medical Records

The firm will maintain organized procedures for:

• Authorizations
• Record requests
• Billing records
• Medical chronology
• Record review.

f. Expert Network

Outside experts may include:

• Medical experts
• Accident reconstructionists
• Engineers
• Economists
• Vocational experts
• Life-care planners.

Experts will remain independent professionals rather than permanent employees unless sufficient case volume justifies otherwise.

g. Settlement Procedure

When a settlement is reached:

1. Settlement authority is documented.
2. Release documents are completed.
3. Settlement proceeds are received into the appropriate attorney account.
4. Funds clear.
5. Attorney fee is calculated.
6. Case expenses are reconciled.
7. Applicable liens/claims are addressed.
8. Client receives a settlement statement.
9. Authorized distributions are made.
10. Required closing compliance is completed.

h. Sources of Income

The principal source of income will be: Contingency legal fees earned from successfully resolved client matters.

The firm may also receive properly structured fees from attorney-to-attorney matters where permitted. The firm will not treat:

• Settlement proceeds belonging to clients
• Money held for medical providers
• Other third-party funds

as firm revenue.

7. Financial Plan

a. Amount Needed to Start John McPherson® LLC

The estimated startup requirement is:

$2,400,000.

This is intentionally far higher than the amount required to merely open a small legal office.

A contingency litigation firm needs enough capital to survive while its case inventory matures.

b. Startup Costs

c. Why the Case-Cost Reserve Matters

Case expenses may include:

• Filing fees
• Medical records
• Depositions
• Transcripts
• Investigators
• Experts
• Trial exhibits
• Other litigation disbursements.

A serious case may require tens of thousands of dollars in expenses before resolution.

The firm must not reach a position where it has a valuable case but cannot afford the next necessary litigation step.

d. Do You Need to Build a Facility?

No. The firm will lease professional office space. Management should avoid unnecessarily expensive prestige office space during startup. The priorities are:

• Convenient transportation
• Professional client meeting space
• Reliable technology
• Security
• Reasonable proximity to courts and business services.

e. Ongoing Expenses

f. Average Salary of Staff

g. Funding Sources

Because professional independence must be protected, startup financing will rely primarily on:

• Attorney-owner equity
• Commercial borrowing
• Credit facilities.

No lender will receive authority over:

• Attorney professional judgment
• Client settlement decisions
• Confidential information beyond what is lawfully permitted.

8. Financial Projection

a. Case Pipeline Forecast

A personal injury firm should not forecast revenue solely by multiplying:

Number of signed clients × expected settlement.

Cases resolve at different times. Some cases may produce:

• No recovery
• Small settlements
• Large settlements
• Trial verdicts.

The planning assumptions are:

These are portfolio assumptions. Actual results could be materially different.

b. Fee Revenue and Profit Forecast

FY1 profitability is deliberately modest. The firm will be building a substantial inventory of cases whose fees may not be collected until future periods.

c. Target Case Mix

By FY3, the firm will aim for a diversified inventory approximately like this:

d. Case Economics

The firm will track profitability by case rather than merely celebrating large settlement figures. For each case, management will monitor:

• Marketing/acquisition cost
• Case expense
• Staff time
• Attorney time
• Gross recovery
• Attorney fee collected
• Time to collection.

A $100,000 attorney fee collected after two years and $40,000 of firm-funded expenses is economically different from:

A $100,000 fee collected after six months with $5,000 of expenses.

e. Marketing Efficiency Targets

f. Portfolio Risk Targets

The firm will avoid excessive dependence on:

• One referral source
• One case type
• One major pending case
• One attorney.

Management will also monitor:

• Total advanced case costs
• Case costs by attorney
• Case costs by practice area
• Cases older than 24 months
• Cases with escalating expert expenses.

g. Key Performance Indicators

Management will track:

• New leads
• Qualified leads
• Cases signed
• Cases declined
• Cost per signed case
• Active case inventory
• Average case age
• Total case costs advanced
• Fee revenue collected
• Average fee per resolved matter
• Client communication response time
• Settlement cycle
• Trial inventory
• Referral source
• Attorney caseload
• Paralegal caseload
• Client satisfaction.

9. Growth Plan

a. How Do You Intend to Grow and Expand?

John McPherson® LLC will grow in stages.

Stage One – Build the New York City Case Portfolio

The first objective will be:

• Strong intake
• Good case selection
• Reliable litigation
• Ethical marketing
• Strong cash management.

Stage Two – Increase Referral-Based Cases

Paid advertising can acquire clients quickly but can be expensive. The long-term target is for a growing percentage of new matters to come from:

• Former clients
• Attorneys
• Professional relationships
• Organic reputation.

Stage Three – Build Dedicated Litigation Teams

Rather than every lawyer handling every type of file, the firm may eventually establish teams for:

• Motor vehicle
• Construction
• Premises liability
• Catastrophic injury.

Stage Four – Expand Trial Capability

The firm will invest in:

• Trial lawyers
• Mock-jury research where appropriate
• Experts
• Trial technology.

Stage Five – Open Borough Consultation Offices

Additional client-access offices may be considered in:

• Brooklyn
• Queens
• Bronx.

These do not necessarily require duplicating the full Manhattan administrative infrastructure.

Stage Six – Expand Downstate

Potential markets include:

• Long Island
• Westchester.

Stage Seven – Add Attorney Partners

Successful senior attorneys may eventually become equity partners where permitted. Ownership arrangements will remain compliant with:

• Professional-service entity rules
• Attorney ownership restrictions
• Fee-sharing rules.

Stage Eight – Selective Interstate Expansion

Expansion outside New York will only occur through attorneys properly authorized to practice in the relevant jurisdiction. The company may eventually evaluate:

• New Jersey
• Connecticut
• Pennsylvania

before attempting broader national growth.

b. Will the Firm Franchise?

No traditional franchise model is planned. The professional practice of law cannot be expanded like:

• A restaurant
• A retail store
• A cleaning franchise.

Growth must respect:

• Attorney licensure
• Professional independence
• Ethical ownership
• Client confidentiality.

10. Exit Plan

John McPherson® LLC will be built so that John McPherson can eventually reduce his personal involvement without destroying the value of the firm. Possible long-term transitions include:

• Internal succession to attorney partners
• Merger with another law firm
• Sale/transfer structured in accordance with professional-conduct requirements
• Management buyout by qualified attorneys
• Orderly wind-down and transfer of matters where necessary and ethically permitted.

The firm will not plan its exit around selling ownership to an ordinary private-equity buyer or non-lawyer corporation if applicable New York professional rules do not permit that structure.

A potential law-firm merger partner will evaluate:

• Collected fee revenue
• Profitability
• Case inventory
• Case quality
• Advanced case costs
• Referral sources
• Attorneys
• Paralegal team
• Client reputation
• Ethics history
• Malpractice history.

One of the firm’s greatest long-term objectives will be reducing dependence on John McPherson personally. During startup, John may be heavily involved in:

• Major intake decisions
• Case strategy
• Settlement evaluation
• Trial preparation
• Marketing.

Over time, the firm will develop:

• Senior attorneys
• Department leaders
• Standard case-review procedures
• Written litigation workflows
• Delegated financial controls.

Client relationships will belong to the firm rather than existing solely on John’s personal telephone or email account. All matters will be maintained within the firm’s:

• Case-management platform
• Document-management system
• Client communication system.

The firm will also maintain detailed portfolio reporting.

Management should be able to identify at any time:

• Number of open cases
• Case stage
• Attorney responsible
• Expenses advanced
• Expected next milestone
• Known settlement offers
• Major deadlines.

This makes the practice more transferable and less dependent on institutional knowledge existing only in one lawyer’s head. The company will also develop future attorney leaders through:

• Mentoring
• Depositions
• Motions
• Negotiations
• Trial responsibility
• Management training.

Ultimately, John McPherson® LLC will be developed as much more than one lawyer purchasing advertisements and settling accident claims.

The objective is to build a professionally managed plaintiff-side litigation firm with disciplined case selection, strong trial capability, ethical marketing, secure client funds, substantial case-cost capacity, modern technology, dependable client communication, attorney leadership depth, diversified referral sources, and financial systems capable of supporting serious personal injury litigation throughout New York City.