A Guide to Business Development Of A Law Firm

Whenever you search for the exact meaning of what exactly Business Development is, you would see a plethora of different answers. Some definitions are simple, while some are an assortment of complicated business world lingo. According to some famous writers, Business development is sales, at times a partnership or what they say, “hustling”, especially for startups. It sounds like scientists seeking to explain what the universe is, doesn’t it?

Let’s cut to the chase and understand what exactly business development for a law firm, is in a simple yet comprehensive manner.

What is the Business development of a law firm?

As per the static definition, business development involves identifying strategic prospects for your law firm that may lead to future contact with a prospective client or an additional influx of business from an existing client. It is expected that a law firm expands its revenues sustainably.

But is Business development restricted to businesses only? No, it is all about focusing on customers, markets, and relationships to create long-term value. Let me explain how. The value here would refer to the essence of business, including access and market reputation, and everything required for a company to stand strong and grow. However, one thing you must keep in mind, is that it is not about quick earning but rather about the deliberate and cautious generation of long-term value. You should bear in mind, that it is the only method to continually grow a company and thereby succeed.

You must be thinking that -” what is the need to focus on customers, markets, and relationships” Don’t worry, I want to emphasise on that and make things much clearer for you. See, it is only natural that your business cannot survive unless customers purchase commodities or services you offer. Customers are the reasons why you consistently improve your services and products and make them best suited, isn’t it?

Now, when I talk about relationships, I want to take the simplest and purest example possible. You and your friend are able to get through any predicament, for the only reason is that the underlying element is a strong relationship. You have built and managed your relationship with each other with respect, affection, trust and mutual recognition. The same goes for businesses, the most victorious business development plans are the result of such strong relationships. Now, this relationship is of paramount importance to business and must be maintained between the employers-employees, among employees, the customers of your business etc.

How to make a law firm business development plan?

Following a certain procedure here may sound a bit complicated. But you should trust us on this. It is really simple. All you have to keep in mind is the following small steps:

1. Firstly you should establish your goals: List out your annual or maybe monthly business objectives first. It may include what products/services or maybe a new practice area, you would like to launch.

2. It is a must to create strategies: In order to achieve something or proceed with something, you should make a course of action/ strategy of how you are planning to achieve something. This includes the ways to channel funds, the working strategy of the firm, client management etc.

3. You should define your goals: Now once you have decided on strategies, you must give them a ranking according to priorities considering your efforts, time and resources.

4. Clearly specify how you intend to carry it out: How will you use networks? How cross-selling will work? All these questions must be answered after assessing all the paramount elements of the firm’s business development.

5. Ultimately, you need to examine everything: This is the review stage. Here, all the above steps are examined quarterly or annually and especially when your business experiences a huge change (this change can be both negative or positive). In short, analyse what is futile and what is successful.

Most importantly!!! Do the following analysis:

1. Executive Summary: Your Executive Summary introduces your business plan, even though it is the last section you draft it summarises every significant section of the plan. It works as a prospectus and is used to show the position and operations of your law firm.

2. Analysis of Company: Through this, you must analyse the type of law firm you are whether corporate, banking, litigation etc. With this, you must also state the background of your law firm, milestones, its legal structure and similar other aspects.

3. Analysis of Industry: This is of paramount importance. You must know the industry, you must research who are your competitors. Industry analysis can help you in improving your strategy and knowledge of market trends. You should know the industry so well that you are able to answer questions like who are key competitors/suppliers, whether the industry is going uphill or downhill, its forecast over a decade or less etc.

4. Know your customer: It can be households, individuals, governments or other businesses too. You must know each section of customers and their requirements. Naturally, they will have different requirements and you should be able to handle each and all efficiently. You may be confused as to what exactly should you know. Well, you should assess income levels, need and utilisation of services, age and even locations.

How does business development help in growth?

Growth is important, whether it is for humans or a business. Business development aids in the expansion and improvement of your company's sales, revenues, product offerings, talent, customer service, and brand awareness by serving as the thread that connects all of a company's divisions or departments. You, the in charge of business development can contribute to transformation and departmental growth in a number of crucial areas. Here are four justifications, we want to give for the significance of business development.

1. It creates vital connections: If you are skilled, you can focus on the connections that require the greatest care. Making connections with customers, coworkers, and other people in one's network can be crucial for seeing new business prospects, generating leads, and making crucial hiring. Additionally, fostering existing connections will help bring in repeat business or present a chance to develop internal talent. It's a crucial tactic for increasing sales and cutting expenses.

2. It is a crucial tactic for increasing sales and cutting expenses: The goal of business development is growth. Precisely, for your firm’s development, you have to develop ways to earn more and spent less. You have to use your prudence to determine which markets and products have the most profit potential and which deals to pursue first by concentrating on business development. Making calculative decisions to reduce expenses, identify potential growth areas and calculate resources required to support such expansion are all part of successful business development.

3. The overall reputation of your firm increases: A good business development plan will assist your firm to develop a strong brand name because marketing is essential to a company's growth. Your business developers closely collaborate with marketing departments to create campaigns that expand the company's target market and attract new clients. Understanding the inner workings of a company's products and services, as well as its consumers, is a key component of business development.

4. Expansion to other markets made easier: Business development must keep up with opportunities and trends in the marketplace. A business developer discovers strategies to enter these markets and access new consumer segments by examining demographics and customer data.

Simple steps to follow for business development

The details of implementation of your business growth strategy is described in a document called a business development plan. You many include the plan for an individual, a practise, or the entire company, whatever it suits you and makes your goals achievable. You must follow these simple and basic steps to create a business development plan.

1. Target Audience - Identify who do you want to reach out to as new clients.

2. Research Of Target Audience And Competitiors - Once you know about your target audience, you will be better prepared to grab their attention and explain how you can help them.

3. Competitive Advantage - Know your USP, know what makes you different. You, through your strategies must be able to answer,why should your target audience choose you? why should you lead the industry? The answers must be accurate, verifiable, and pertinent to the prospect while they are deciding which firm to partner with.

4. Overall Strategy - Now you should go on to selecting one or more broad techniques to connect with, interest, and persuade your prospects. Identify approach which best suits your target audiences' requirements and preferences, assess which ones are most effective in communicating your competitive advantage, most efficient etc.

5. Monitoring - Implementation and its impact determine success or failure. Strategies that aren't put into practise fail. Therefore, you should always observe your actions and subsequent impact.

There are plethora of opportunities and strategies for you to grow in best and sustainable way in your business. All you need is to utilize these as much as you can. Best of luck!