Why every law firm needs a strategic business plan
Running a law firm without a clear plan is a bit like setting off on a journey with no destination in mind.
You might have a rough idea of where you want to end up, but without a proper route, you are bound to take detours, hit roadblocks, and waste valuable time and resources.
Some firm partners start with a plan, but not all plans stand up to the twists and turns of reality.
That is where strategic planning makes all the difference.
More than a checklist
A strong business strategy is not just a collection of ideas.
It is a well-defined roadmap that outlines not just where you want to go but how you are going to get there.
It should include clear, achievable targets and the tools you need to reach them. Often, there will be both short-term and long-term goals that you plan to work towards.
A good way to set your goals is to use the SMART principle, which stands for:
- Specific – For a goal to be effective, it needs to be specific, not vague.
- Measurable – Clearly quantifying goals makes it easier to monitor progress and lets you know when they are achieved, or guides what needs to be done to achieve them.
- Achievable – Make sure your goals are realistic. There is no point in setting yourself up for a fall. Once one goal is achieved you can look to aim higher.
- Relevant – Take a look at the bigger picture.
- Time-Bound – Set deadlines and try to stick to them. If you don’t you can easily lose track of where you are supposed to be.
The best plans shift and grow as your firm does, allowing you to respond to challenges, make the most of new opportunities, and stay ahead of the competition.
To maximise the performance of your business, you should regularly review your business strategy and make changes where necessary.
You will need to create a clear set of Key Performance Indicators (KPIs) and monitor them through regular management accounts.
This way, you’ll be able to track what is and isn’t working for your firm and make adjustments accordingly.
Taking a step back to move forward
Getting stuck in the day-to-day grind is one of the biggest challenges faced by partners.
Managing staff, looking after clients, and handling endless admin can make it feel impossible to take a step back and focus on the bigger picture.
However, firms that do not plan ahead often find themselves treading water, or worse, falling behind while others surge forward.
A well-structured strategy gives you focus, helping you allocate resources wisely, improve efficiency, and set the foundation for sustainable growth.
Where to begin
Strategic planning does not have to be complicated. Start by asking yourself:
- Where do you see your firm in five years?
- What obstacles could slow you down?
- Which opportunities should you be prioritising?
- How can you strengthen cash flow and profitability to fuel your growth?
Once you have the answers, the next step is to put the right financial and operational strategies in place to bring your vision to life.
At Moore Thompson, we have a wealth of experience in advising clients in a wide range of sectors and industries.
Our team of expert accountants can help you build a practical, well-structured business plan that removes uncertainty and sets you on the right path.
We’ll give you constructive advice and help you develop solutions to potential problems, so that you can strengthen your business plan and give yourself the best chance of success.
With our financial, accounting, and tax expertise, we’ll do everything we can to ensure you achieve your business goals.
Ready to prepare a bulletproof business plan for your firm? Get in touch with Moore Thompson today.