A law firm is a business entity that is formed by one or more lawyers to practice law. The main service rendered by a law firm is to advise clients (individuals, government, or organizations) about their legal rights and responsibilities. So also, law firms represent clients in civil or criminal cases, business transactions, and other matters in which legal advice and other assistance are sought.
It is important to note that the UK legal services market (including private practice firms, barristers, patent agents, and other legal services providers) was valued at almost £37 billion in 2020, unchanged from 2019. As of February 2022, there are about 9,782 law firms in the United Kingdom employing a total of 108,756 lawyers.
Steps on How to Write a Law Firm Business Plan
John Paddington and Co® Law Firm, LLP is a law firm that will be located in the heart of Prestwich, Manchester. The firm will operate as a litigation law firm and also handle other related aspects of the law. John Paddington and Co® Law Firm, LLP is a client-focused law firm that provides broad-based experience at an affordable fee that won’t in any way put a hole in the pocket of our clients.
We will offer a complete range of legal services to our local, state, national, and multi-national clients and we will ensure that we work hard to provide the legal services and counsel needed by our clients to accomplish their business goals and objectives. John Paddington is the founder and CEO of John Paddington and Co® Law Firm, LLP.
a. Our Products and Services
At John Paddington and Co® Law Firm, LLP, our services will cover; breach of contract, securities-law breach, class-action lawsuits, antitrust actions, employment-related problems, white-collar crimes, and any other related cases.
b. Nature of the Business
Our law firm will operate the business-to-consumer model (B2C) and business-to-business model (B2B).
c. The Industry
John Paddington and Co® Law Firm, LLP will operate in the legal services industry.
d. Mission Statement
Our mission is to establish a world-class law firm that will provide professional and trusted legal services that will assist businesses in operating sustainably.
e. Vision Statement
Our vision is to establish a law firm that will become the number one choice for both individual and corporate entities in and around our locations.
f. Our Tagline (Slogan)
John Paddington and Co® Law Firm, LLP – John Paddington and Co® Law Firm, LLP, The Law Firm You Can Trust!
g. Legal Structure of the Business ((LTD or Ltd), PLC, LLP)
John Paddington and Co® Law Firm, LLP will be formed as a Limited liability partnership (LLP), in which the attorney-owners are partners with one another, but no partner is liable to any creditor of the law firm nor is any partner liable for any negligence on the part of any other partner.
h. Our Organizational Structure
- Senior Partner (President)
- Admin and HR Manager
- Legal Secretary
- Legal Assistant
- Front Desk Officer
i. Ownership/Shareholder Structure and Board Members
- John Paddington (Owner and Chairman / Chief Executive Officer) 52 Percent Shares
- Dennis Wembley (Board Member) 18 Percent Shares
- David Holmes (Board Member) 10 Percent Shares
- Charles Philips (Board Member) 10 Percent Shares
- Irene Williams (Board Member and Sectary) 10 Percent Shares.
- Ideal location for a law firm business
- Highly experienced and qualified employees and management
- Access to finance from business partners
- Excellent customer testimonials.
- A reliable and efficient method of executing cases.
- Financial Constraints
- A new business that will be competing with well-established law firms in and around Manchester.
- Inability to retain our highly experienced and qualified employees longer than we want
- A rise in the number of people who want to engage the services of law firms due to legal awareness
- Online market, new services, new technology, and of course the opening of new markets.
i. How Big is the Industry?
The legal services industry in the United Kingdom is a big and thriving industry. The industry is worth over £37 billion and with over 9,782 active law firms.
ii. Is the Industry Growing or Declining?
Yes, the law firm industry in the United Kingdom is growing. The turnover of the legal services sector in the United Kingdom grew more than twofold since 2000, reaching a value of 36.8 billion British pounds. Despite the coronavirus pandemic, the legal services sector was not negatively impacted, unlike many other sectors.
iii. What are the Future Trends in the Industry
The future trends when it comes to the legal services industry will revolve around technology. Law firms are going to start leveraging modern telecommunications to operate from remote locations and provide their services to international clients, avoiding the costs of maintaining physical premises with lower overheads than traditional law firms.
This lower cost structure allows virtual law firms to bill clients on a contingency basis rather than by billable hours paid in advance by retainership.
iv. Are There Existing Niches in the Industry?
Yes, there are loads of niche ideas when it comes to law firm business, and here are some of them;
- Corporate Law
- Complex Litigation
- Tax Law
- Intellectual Property
- Civil Rights
- Sports and Entertainment
v. Can You Sell a Franchise of your Business in the Future?
John Paddington and Co® Law Firm, LLP has no plans to sell franchises in the nearest future.
- The arrival of new law firms within our market space
- Unfavorable government policy and regulations.
- Steady wage expenses will reduce industry profitability.
- Economic uncertainty
- Liability problems
- The government could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses like ours.
i. Who are the Major Competitors?
- Allen & Overy.
- Clifford Chance.
- Freshfields Bruckhaus Deringer.
- Slaughter and May
- DLA Piper
- Hogan Lovells
- Norton Rose Fulbright
- Herbert Smith Freehills
- Eversheds Sutherland
- Clyde & Co
- Pinsent Masons
- Simmons & Simmons
- Bird & Bird
- Womble Bond Dickinson
- Taylor Wessing
- Osborne Clarke
- DAC Beachcroft.
ii. Is There a Franchise for Law Firm Business?
Yes, there are franchise opportunities for law firm businesses. Here are some of them;
- Tayne Law Group
- Pacific Divorce Management
- Legal Value Firm
iii. Are There Policies, Regulations, or Zoning Laws Affecting Law Firm Business?
No zoning law directly affects law firms in the United Kingdom, but it is important to state that The Solicitors Regulation Authority (SRA) is the regulatory body that regulates solicitors in England and Wales.
a. Who is Your Target Audience?
i. Age Range
Our target market comprises adults above 18 years old who have the finance to hire our services.
ii. Level of Educational
We don’t have any restrictions on the level of education of those who we are ready to do business with.
iii. Income Level
There is no cap on the income level of those who will hire our legal service.
There is no restriction when it comes to the ethnicity of the people we will work with.
There is no restriction when it comes to the language spoken by the people we will work with.
vi. Geographical Location
Anybody from any geographical location is free to hire our legal services.
John Paddington and Co® Law Firm, LLP will not restrict any customer from hiring our legal services based on their lifestyle, culture, or race.
b. Advertising and Promotion Strategies
- Deliberately Brand Our Business.
- Tap Into Text Marketing.
- Make Use of Bill Boards.
- Share Your Events in Local Groups and Pages.
- Turn Your Social Media Channels into a Resource
- Develop Your Business Directory Profiles
- Build Relationships with players in the key industry.
i. Traditional Marketing Strategies
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Broadcast Marketing -Television & Radio Channels.
- OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
- Leverage direct sales, direct mail (postcards, brochures, letters, fliers), print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.
ii. Digital Marketing Strategies
- Social Media Marketing Platforms.
- Influencer Marketing.
- Email Marketing.
- Content Marketing.
- Search Engine Optimization (SEO) Marketing.
- Affiliate Marketing
- Mobile Marketing.
iii. Social Media Marketing Plan
- Start using chatbots.
- Create a personalized experience for our clients.
- Create an efficient content marketing strategy.
- Create a community for our target market.
- Gear up our profiles with a diverse content strategy.
- Use brand advocates.
- Create profiles on the relevant social media channels.
- Run cross-channel campaigns.
c. Pricing Strategy
When working out our pricing strategy, John Paddington and Co® Law Firm, LLP will make sure it covers profits, insurance, premium, license, and economy or value and full package. All our pricing strategies will reflect;
- Cost-Based Pricing
- Value-Based Pricing
- Competition-Based Pricing.
Sales and Distribution Plan
a. Sales Channels
Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances, and freelancers to help refer clients to us.
John Paddington and Co® Law Firm, LLP will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted to our customers.
b. Inventory Strategy
The fact that we will need office supplies and stationery means that John Paddington and Co® Law Firm, LLP will operate an inventory strategy. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.
c. Payment Options for Customers
Here are the payment options that John Paddington and Co® Law Firm, LLP will make available to her clients;
- Payment via bank transfer
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Return Policy, Incentives, and Guarantees
Our return policy, incentives, and guarantees will be on a case-by-case basis. Plus, we will offer pro bono services from time to time.
e. Customer Support Strategy
Our customer support strategy will involve seeking clients’ feedback. This will help us provide excellent customer service to our clients and investors, it will help us to first understand their needs, experiences, and pain points. We will work with effective CRM software to be able to achieve this goal.
Regularly, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.
We plan to expand our revenue by 45 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting partnership and retainers deals that will enable us to boost our law firm and support revenue growth.
a. What Happens During a Typical Day at a Law Firm Business?
- The business is open for the day’s work
- The office facility is cleaned and ready for the day’s business
- Clients are attended to
- Our legal team goes to court to represent our clients
- Administrative duties are carried out
- The business is closed for the day.
b. Production Process
There is no production process when it comes to law firms.
c. Service Procedure
The service procedure for a law firm business starts with a customer requesting the services of a law firm. Once the request is gotten, it will be processed and the case will be attended to appropriately.
d. The Supply Chain
John Paddington and Co® Law Firm, LLP will rely on key players in several industries to refer business deals to us.
e. Sources of Income
John Paddington and Co® Law Firm, LLP will make money by offering its legal services to clients.
a. Amount Needed to Start your Law firm Business?
John Paddington and Co® Law Firm, LLP would need an estimate of £125,000 successfully set up our law firm business in the United Kingdom. Please note that this amount includes the salaries of all our staff for the first month of operation.
b. What are the Costs Involved?
- Business Registration Fees – £12.
- Legal expenses for obtaining licenses and permits – £1,300.
- Marketing, Branding, and Promotions – £1,000.
- Business Consultant Fee – £2,000.
- Insurance – £1,400.
- Rent/Lease – £35,000.
- Other start-up expenses like commercial satellite TV subscriptions, stationery (£500), and phone and utility deposits (£1,800).
- Operational Cost (salaries of employees, payments of bills et al) – £30,000
- Start-up Inventory – £7,500
- Store Equipment (cash register, security, ventilation, signage) – £1,750
- Furnishing and Equipping the Office – £10,000
- Website: £600
- Miscellaneous: £1,500
c. Do You Need to Build a Facility? If YES, How Much Will it Cost?
John Paddington and Co® Law Firm, LLP will not build a new facility for our law firm business; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.
d. What are the Ongoing Expenses for Running a Law firm Business?
- Office supplies and stationery
- Utility bills (gas, internet subscriptions, phone bills, signage and software renewal fees et al)
- Salaries of employees
- Marketing costs
e. What is the Average Salary of your Staff?
- Senior Partner (President) – £85,000 – £100,000 Per Annum
- Attorney- 650,000 Per Annum
- Admin and HR Manager- 40,000 Per Annum
- Legal Secretary- 34,000 Per Annum
- Paralegal- 27,000 Per Annum
- Legal Assistant – 24,000 Per Annum
- Accountant – 24,000 Per Annum
- Front Desk Officer – 22,000 Per Annum
f. How Do You Get Funding to Start a Law Firm Business?
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Source for soft loans from your family members and friends.
a. How Much Should You Charge for your Service?
The legal fee charged by law firms to a large extent depends on the type of case or business deal. For example, a solicitor may charge anything from £400 to £1,000 to set up LPA, depending on the complexity of the arrangement.
b. Sales Forecast?
- First Fiscal Year (FY1): £360,000
- Second Fiscal Year (FY2): £650,000
- Third Fiscal Year (FY3): £1.2 million
c. Estimated Profit You Will Make a Year?
- First Fiscal Year (FY1) (Profit After Tax): £250,000
- Second Fiscal Year (FY2) (Profit After Tax): £450,000
- Third Fiscal Year (FY3) (Profit After Tax): £800,000
d. Profit Margin of a Law firm Business
The ideal profit margin we hope to make at John Paddington and Co® Law Firm, LLP will be between 50 and 75 percent all things being equal.
a. How do you intend to grow and expand? By opening more retail outlets/offices or selling a franchise?
John Paddington and Co® Law Firm, LLP will grow our law firm business by admitting more partners and opening our offices in major cities all across the United Kingdom.
b. Where Do You Intend to Expand to and Why?
John Paddington and Co® Law Firm, LLP plan to expand to;
- Bradford, West Yorkshire
- Little Horwood, Buckinghamshire
- Auckley, South Yorkshire
- Dorchester, Dorset
- Ammanford, Carmarthenshire
The reason we intend to expand to these locations is that available statistics show that the cities have the highest and most thriving market for legal services in the United Kingdom.
The founder of John Paddington and Co® Law Firm, LLP plans to exit the business via merger and acquisition. We intend to merge with an international law firm that has a world spread so that the management of the company can be placed under a trusted hand when the founder retires.
The goal of combining two or more international law firms on a global scale is to try and achieve synergy – where the whole (the new company) is greater than the sum of its parts (the former two separate entities) and with a well-structured management team.