The Business Plan and Budget
Money. We hate talking about it, but without it, opening a new law practice is just a dream. Jay Foonberg, in his best-selling book, How to Start & Build a Law Practice, recommends having enough cash to support yourself and your family for one year. But where do you get the money? You may be fortunate enough to have cash reserves to launch your new office. But if not, Foonberg recommends you have some combination of the following: a working spouse; a bank loan for living expenses; and a wealthy relative to lend/give you money or guarantee your bank loan.
The bank loan option is by far the most difficult. A bank will usually want to see a business plan before loaning you money.
Decide whether you will go into practice with another lawyer or lawyers, or on your own. Then turn your attention to the business plan.
Develop a Business Plan
A business plan is a concise and organized summary of how you intend to start and remain in business. It is composed of four main areas: a general description of your business, your financial plan, your management plan and your marketing plan. From A Business Plan and Budget: The foundation of a successful and profitable practice by Dave Bilinsky and Dan Pinnington
- Purchase The Lawyer's Guide to Creating a Business Plan: A Step-by-Step Software Package (get 20% off by purchasing online at www.ababooks.org and using SC Bar discount code PAB5ESCB)
- Managing the Finances of Your Practice booklet from LawPRO
- Estimate expenses and revenue using a cash flow plan. Don’t know how? See Chapter 15 “Creating the Financial Plan†and Appendix A of Attorney and Law Firm Guide to the Business of Law by Edward Poll – available in the lending library of the Bar
- Business Planning for Lawyers
By Edward Poll - Small Business Administration Business Plan Basics
- Launching A Small Firm Or Solo Practice by Art Italo
- Hire a certified public accountant (CPA) for assistance with:
- Deciding firm structure (Sole proprietor or incorporating as P.A., LLC, or other)
- Tax issues
- Preparing a business plan and budget
- Determine the amount of start-up capital you will need