You’ve invested a great deal of your time and resources into your education and building your law practice, but are you reaping the rewards that are possible due to all of your hard work?
If you are like most lawyers, probably not.
Your law degree is one of the most valuable resources you have, and with the right business plan, you can make the most of it — and start building a law practice and a life that you love.
Here are 6 steps you can take to gain clarity and develop the ideal law practice business plan for you.
1. Consider your long-term goals:
- Do you want to build your life around your law practice, and not the other way around?
- Do you have (or want to have) children you’d like to be able to spend more time with, being a full-time parent and part-time lawyer?
- Do you want to travel more than you’ve been able to, or desire to spend your winters somewhere warmer?
- Are you hoping to build a practice that you can eventually sell?
- Would you like to make at least six figures annually, while having complete control of your schedule?
- Would you like to build a million-dollar+ a year law practice?
2. Decide how much monthly revenue you need to generate to support your family and business expenses.
3. Consider how much time you have to focus on your law practice – while also having a life.
4. Look at how many clients you need to engage each month, and at what average fee to meet those goals in the time you have.
5. Choose a clientele to serve that values your services enough to meet those goals, and learn how to educate those clients so you are top of mind when anyone in that clientele base needs your services.
6. Create a cash forecast and monthly goals to work your intentional marketing plan and do just the activities necessary to meet those goals.
If you take these 6 steps, you’ll know you are headed in the right direction – directly toward a law practice that truly serves your life today, and that you can even sell and retire from down the road.
If you have uncertainty about any of these steps, and how to take them in your own life, schedule a call with a Law Business Advisor and we will work with you to create the personalized Practice Roadmap.
What will your road to solo law practice success look like?
We’ve found that most lawyers who want to build a successful law practice will fit into one of three different types of practice plans. Not everybody wants to build a million dollar a year law practice, and not everybody should.
Mapping out your ideal practice plan begins with you identifying clearly what you want to earn, and how much – or how little – you want to work, based on the reality of your life circumstances and your desire to learn how to hire, manage and train other people.
Which of these law practice business plans most closely matches where you’d like to go?
- Solo Practitioner: Serve just 3-4 clients a month, at an average fee of $3,000 — $5,000, and have one outstanding team member working by your side. You’ll keep around $10,000 per month (before taxes) and could work very, very part-time with the right automation systems set up.
- Staffed Practice: Serve 12 to 15 new clients a month at an average fee of $3,000 — $5,000 and have a staff of 3 people to support your practice. You’ll take home approximately $200,000 — $250,000 a year, with gross revenue of about $650,000. The best part of this model, it is possible to do all of this while working just 3.5 days a week, if you’ve got great systems for educating your community and automating and personalizing your client services.
- 7-Figure Empire Builder: Serving only 250 new clients a year, or 20 new clients a month, at an average fee of $4,000, makes it possible to build a million-dollar law practice and take home $300k — $400k per year. You’ll likely have 6-7 team members, at least, plus you are likely to be training other of counsel attorneys in your systems. Much of your time will be spent working “on the business” rather than serving clients. Personalized automation is, of course, the key here, to ensure you can maintain a reasonable schedule and be building a law practice you can sell.
None of these law practice plans are a get rich quick methodology! We’re not talking about a do-nothing-and-get-paid way of showing up with any of these. You have to care about your clients for this to work. If you don’t genuinely care, then none of the strategies, techniques, or resources that we have for you here at New Law Business Model will work for you. If you do care, then you have the opportunity to build yourself a law business that makes a difference in your client’s lives, makes you a great living, and gives you full control over your schedule.
Each practice plan will indeed take work to get there, and there will be some significant shifts you will need to make to transform your law practice into one that works for you. However, with the right guidance, systems, and support– it doesn’t have to take that long. Once you have it all in place, you’ll have set yourself up for long-term success – and you’ll love your life and your law practice again.