Drafting a business plan
Produced in partnership with DG Legal
Drafting a business plan

The following Practice Compliance guidance note Produced in partnership with DG Legal provides comprehensive and up to date legal information covering:

  • Drafting a business plan
  • What is a business plan?
  • Why have a business plan?
  • Who should write the plan?
  • What should be included in the plan?
  • Budget and cashflow forecast
  • Action plan
  • Monitoring and review

This Practice Note provides information about preparing and implementing a successful business plan. The Solicitors Regulation Authority (SRA) has made it clear it expects strong business management from firms but there is very little in the way of detailed regulation.

What is a business plan?

A business plan is a document that explains how a firm will achieve its objectives.

Precedents that can be used as a starting point to prepare the firm’s business plan are available. See Precedent: Business plan—consumer for consumer law firms or Precedent: Business plan—commercial for commercial law firms.

Why have a business plan?

Regulatory requirements

The SRA Handbook includes ten mandatory SRA principles. SRA Principle 8 is the most relevant to business planning which requires you to run your business or carry out your role in the business effectively and in accordance with proper governance and sound financial and risk management principles.

For information about regulatory requirements relevant to business planning, see Practice Note: Business planning—regulatory requirements.

Business benefits

Business planning confers several benefits to the firm, eg:

  1. increasing the likelihood of achieving the firm’s objectives

  2. demonstrating to others, eg banks, that the firm is moving forward

  3. keeping management and staff focused

  4. increasing the likelihood of recruiting and retaining talented staff

  5. increasing profitability

Business planning is a key consideration when starting a new business. However, all firms should

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