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Written by Norman Clark
Published: 16 December 2013
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business man sitting in a field at sunrise, framing a scene with his hands

For law firms operating on a calendar year basis, a large part of the next 20 to 30 days will be (or at least should be) consumed by putting the finishing touches on the business plan for 2014.

While you're at it, why not write a 2-year business plan?

Of course, some of the details of the plan for 2015 might be a little hazy. That is to be expected, but even an imprecise vision of months 13 through 24 is far better than none at all. If your firm has even a mediocre set of financial records and even if your partners are only barely conscious of the economic, political, and regulatory trends that are likely to shape the demand for legal services in your market, you should be able to construct a reasonably plausible structure of your firm's expected performance and investment priorities for the next 24 months.

This time next year, you would update your original plan for 2015 (the one that you wrote this month) and extend it to include the first draft of your business plan for 2016.

There are numerous advantages to multi-year business planning. Some of the most practical benefits are:

In short, a business plan that includes forecasts, objectives, and budgets for 2015 will help your firm make better-informed decisions about 2014.

Norman Clark