Aug 21, at 4: Michael Allen is Managing Principal at Lateral Link, focusing exclusively on partner placements with Am Law clients and placements for in-house attorneys.
Appendix 1 — Sample business plan equity partnership Introduction I suspect that by this stage in your career it has dawned on you that, in the business of practising law, technical excellence, a brilliant legal mind and a good reputation are not as fungible a commodity as cold hard client contacts.
Whilst the above are rarely mutually exclusive, for most partners your market value and ongoing job security is primarily derived from your book of business.
Defining a following As you will doubtless know determining a client following is often a highly subjective exercise based on a series of assumptions about: As a working definition your following is a per annum estimation of the work for which you are instructed by clients at a given charge out rate in a new firm in the short term.
What to include in your following Your following is not just the work which you or the other solicitors in your department do in your name; it includes work that can be introduced to other departments by you.
It can include work which you are currently outsourcing to other firms. It even includes work which, although in a different practice area to yours, could potentially have been yours, had you been at a firm with the capability or reputation to undertake such.
That being said, firms are generally more comfortable with the bulk of your following being in your own practice area. Although in part this is because your hiring sponsor is often the departmental head and, however obliquely, will tend to need the results from your hire to show up on their bottom line.
The rule works well for most types of transactional law but becomes distorted in your favour by a host of factors including: Your practice area can also work in your favour significantly reducing or even eliminating your need for a following.
In the UK, traditional corporate support practice areas such as pensions and corporate tax rarely require ratios of 3: Moreover the level of certainty required in some practice areas, such as commercial litigation, tends to be far less than that of mainstream corporate thanks to the non-repeat nature of this work.
As many a bemused London-based US hiring partner is aware, this latter example is in stark contrast to the United States where commercial litigation clients are as portable as those in mainstream corporate.
Against this your following is discounted in the following circumstances: Whilst this potential drop off in work can often be more than compensated by your being able to gain other matters higher up the food chain sometimes even from the same clientit is an important variable which you should not under estimate particularly as the issue applies equally to work undertaken by your assistants.
Nevertheless, if the fit is right, most firms will allow for mutually agreeable transitional arrangements. Obviously where you are moving to a firm with a lower charge out rates for example from a City firm to one based outside London the rate differential tends to work in your favour by solidifying your following.
Age discrimination Another factor which seems to work either way is age profile: It is this principle which forms the basis upon which most jilted senior associates are offered partnership at other firms. The need to demonstrate: In these law firms are looking for: It is all very well having a FTSE client but if your relationship rests with one individual and that individual gets run over by a bus, you, and your potential firm, run the obvious risk of losing all the work from their institution.
As much as possible, try and assuage this concern in your business plan or you run the risk of your following being unduly discounted.
List all relevant contacts at a given institution, both legal and business. You should specify their title, position, the length of time you have worked with them and any other factors which demonstrate client loyalty such as if they instructed you in their previous place of work or recommended you to other lawyers.
In most instances potential law firms will want to have evidence of a track record with a given institution and will ask for your client billings over a three year period together with a forecast for the following year.
Although not essential it will help if you can demonstrate potential with an upwards trajectory in billings. Writing a business plan Nearly as important as your potential following is how you present this.
Almost without exception you will need to prepare a business plan. Remember in most firms, partnership, particularly full equity, requires that you are voted in by a cross section of the equity partners at the firm.A Business Plan is a written document that outlines a company's goals and how it plans to achieve them.
It also encompasses several other aspects of a company's future agenda and can serve as a tool for internal decision-making or as a business proposal to pitch to potential investors.
If this is the case, your business plan should focus on the long-term viability of your practice and envision a seamless succession plan to help the firm retain the clients after your retirement. In fact, personal business planning can be as simple as you want to make it, as you can see here with this sample business plan for law practice PDF.
You don't even have to call it a business plan -- call it a career plan if you prefer. Nov 18, · A Business Plan is a written document that outlines a company's goals and how it plans to achieve them.
It also encompasses several other aspects of a company's future agenda and can serve as a tool for internal decision-making or as a business proposal to pitch to potential investors. Creating A Business Plan A business plan is one of the most important tools to explain your practice, relationships, and strategy to another law firm.
and strategy to another law firm. You. Wy'East Law Firm law firm business plan executive summary. Wy'East Law Firm provides legal services to technology firms and specializes in mergers, acquisitions, and stock option plans/5(36).