8 Imperatives for a Paralegal Business Plan
Making a living as a freelance or independent paralegal is essentially the same thing as running any small business. Being a professional in the legal field, however, does not necessarily mean you will prosper as a small business owner. There is a completely different skill set that one must possess, or learn, to run a profitable freelance paralegal business.
More than half of all start-up businesses fail due to poor business planning or the failure to correctly identify and manage potential risks, making a business plan vital even to an already established business. There is a very common myth that only startups need a business plan. In actuality, you should be reviewing and updating your business plan on an annual basis. Many big, well-known companies call this an operational, strategic, or annual plan. No matter what you chose to call it, your freelance paralegal business cannot afford to not have one.
What should be included in your annual business plan?
Executive Summary
The executive summary is the first page of a business plan but it should always be written last. It sums up everything else and tells the reader what and where your company is, where you plan to take it, and why your company will be successful. The executive summary should be extremely persuasive. It is the part of a business plan used to help investors, employees, advisors, and others quickly understand and support your plan.
2. Elevator Pitch
An elevator pitch is a brief description of your business. Your elevator pitch should include the nature of your business, your target audience, they need your services will meet, and what makes your freelance paralegal business unique. An ideal elevator pitch should be 20 to 30 seconds in length; lasting about as long as a short elevator ride.
Take your time when crafting an elevator pitch for your freelance paralegal business. Your elevator pitch should be compelling and memorable. You can use your elevator pitch in many situations, for instance, to tell people what you do for a living or to introduce your organization. Practice your elevator pitch on a regular basis. The manner in which it is delivered is as important as the words that you use. You want it to sound natural. Be aware of your body language as well.
Tips
Tailor your elevator pitch for different audiences.
Practice in front of a mirror or deliver your pitch to family and friends.
3. Mission Statement
A mission statement very briefly states the purpose of your business and reflects its values. The ideal length of a mission statement is two to three sentences. A mission statement may seem unimportant, however, it is an extremely significant element of any successful business. A good mission statement should convey the value of your business, lead employees in the right direction, and inspire potential clients. It should be an accurate representation of your company culture; a sense of identity.
Tip
Keep your mission statement short and sweet.
4. Goals and Objectives
Setting and reaching short and long-term goals is the hallmark of any thriving business; making business goals and objectives a key element of an annual business plan. Long-term goals should be much more substantially greater than short-term goals; taking anywhere from five to 20 years to reach. Defining your business goals requires quite a bit of thought and most importantly, honesty. Be as specific as possible to increase the chances of obtaining your goals. As short-term goals are achieved and new ones set, update this section of your annual business plan.
Tips
Set short-term goals that you can realistically reach within a period of weeks.
Set both strategic and financial goals.
5. Strengths and Weaknesses
Strengths and weaknesses are not included in a traditional, formal business plan. But analyzing your strengths and weaknesses each year and including them in an annual business plan will benefit your freelance paralegal business in several ways. Identifying your company’s strengths can help to determine which future opportunities to pursue and where improvement is needed.
6. Key Performance Indicators
Key performance indicators (“KPIs”) are a type of performance measurement that can be used to evaluate the success of a particular activity or overall success of the business. Examples of a key performance indicator include the number of new client acquisitions, the number of visitors to your website, and the number of website visitors that filled out your contact form. By identifying the KPIs that you will track in your business and listing them in this section of your annual business plan, you will be able to see how your business is performing and fix potential problem areas before income is lost.
7. Marketing Strategy
It is recommended that you create a comprehensive marketing plan that explains your marketing strategy in detail. Summarize your marketing plan for inclusion in your annual business plan.
8. Financial Projections
Financial projections are required for small businesses to show financial institutions and potential creditors when seeking funding. Be realistic when filling in projected numbers. It never benefits anyone when financial projections are unrealistic. However, financial projections will also help you to understand more about your business and where it is heading.
Tip
Every month use real numbers from the previous month’s business to update and correct your financial projects.
Creating an annual business plan will enable you to easily re-evaluate the most critical aspects of your freelance paralegal business. By reassessing these aspects of your business on a regular basis you will greatly increase the chances of its success.
