2018,

1ST
OCTOBE
R.

BUSINESS PLAN

LEGAL PRACTISE MANAGEMENT

KAMAU ANN, 096972

[COMPANY NAME] | [Company address]

EXECUTIVE SUMMARY.
AWK and advocates law firm is a new law firm established on August 28, 2013. The firm’s
attorneys are :
a. Ann Wairimu
b. Paulina Mugure
c. Felistas Ndunge
d. Brian Maninga
e. Brandon Maina
The firm’s partners are not in this start-up alone, but wish to memorialize the help and efforts of
friends and family in making AWK and advocates law firm, a reality. The last quarter of 2021
will be spent planning and implementing the start-up phase of the law firm. The firm will be
open for new clients on January 6, 2022. The firm will hold an open house on January 10, 2022.
This business plan is designed to document the planning and implementation information agreed
to by the partners during start-up meetings. The business plan covers the firm’s structure and
governance, financial projections, equipment, software and supplies that will be in place by
opening day. During the start-up phase additional information will be added and this plan will
be updated as a guide for operations of the firm.
The firm will mainly focus on alternative dispute resolution where it will help the clients who
cannot afford the high litigation prices to settle their disputes amicably without having to go to
court through processes such as mediation, arbitration and negotiation. This will involve a lot of
sit ins with the parties both your client and the person who they are suing. This, however, is not
the only service to be provided. The firm will also provide services such as legal advice, criminal
law litigation, commercial law litigation and family law litigation. In family law we will deal
with people such as couples who want a divorce or are fighting for a child’s custody, in
commercial law we will be dealing with businesses deals such as amalgamations, mergers and
receivership.
To start the law firm we will need around ten million capital. The five firm partners will
contribute fifty percent of the capital which will require each partner to contribute approximately
one million shillings. To get the other fifty percent we will get a loan from the Kenya
Commercial Bank and each partner will give their title deeds as security for the loan so that we
can all work hard to ensure that the loan is paid off as soon as possible and the burden does not
fall on one person.

COMPANY DESCRIPTION.
OWNERSHIP
The law firm will be a partnership operated by five partners: Ann Wairimu, Paulina Mugure,
Felistas Ndunge, Brian Maninga and Brandon Maina. All the partners have an undergraduate
degree in law, have been admitted in the bar and have at least five-years’ experience in law

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having been admitted in the bar. Ann Kamau will be the managing partner while Paulina Mugure
will be incharge of the family law department , felista Ndunge will be in charge of the
commercial law department,Brian Maninga will be in charge of the criminal law department and
Brandon Maninga will be the one in charge of the alternative dispute resolution department.
The five will work in corporation to make sure the members of the departments cooperate to
ensure there is smooth flow of information in the firm. The other four will be required to make
weekly reports to the managing partner on the progress of their respective departments including
the activities carried out in the departments over the week. Each department will be required to
have fifteen lawyers to carry out the daily chores of the departments and be supervised by the
partner in charge of the department.
STRUCTURE AND GOVERNANCE.
The firm has five partners working in firm. The firm is organized as a professional association,
and there is an elected managing partner who serves a term of two years. The managing partner
is elected by the rest of the partners in an annual general meeting after every two years. This
helps to make sure that each partner is involved in management of the firm. This is shown in the
following organogram:

legal non legal

department departmet

accounting
managing partner
departnment

senior partners record keeping

depaertment

junior partner receptionist

lawyers cleaning lady

research assistant

LEGAL SERVICES OFFFERED

Each partner has three years of legal experience in the areas of practice of their respective
departments, in addition to two-years’ experience as associate attorneys in private practice. As a
group, the partners have solid working experience in the areas of criminal litigation; commercial
law; family law and alternative dispute resolution. These services will be offered to new clients.
It is a goal of the partners to have 400 active client matters by the end of the second year of
operation.
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 It is possible that the firm’s partners may be asked to assist clients with matters in practice areas
not listed above. Acceptance of work for prospective clients in practice areas not listed above
requires the approval of all the partners to ensure the firm has the expertise to handle the work in
the client’s best interests. At this time, the firm has no defined referral network, but sees the
need to develop one during the first year of operations. In the alternative, prospective clients the
firm cannot serve will be referred to other firms that can handle the client’s issues that are
closely related to the firm.
LOCATION
The law firm will be located in the Garden City Mall, a retail strip center located along Thika
superhighway. The surrounding suburb has a population of over 93, 000 according to the 2009
Kenya census report. The residential population in the immediate area is comprised of a mixture
of single family and multi-family housing who are both in the middle and high income level.
BUSINESS OBJECTIVES
The primary objectives of the business plan for the law firm are bel ow:
- To be the premier alternative dispute resolution law firm in the country.
- To provide quality services to the clients at exemplary prices.
- Achieve high client number who are satisfied with the services of the law firm.
MISSION STATEMENT.
Our mission is to provide unique and satisfying services to clients so that they can wish to come
back and even tell their friends about the firm.
GOALS.
Our mission will be achieved through the following goals:
● Providing excellent and unique services to our clients and make sure their requests are
fulfilled.
● Being mindful of the well-being of our customers and staff by treating each and every one with
dignity and respect.
MARKETING PLAN.
MARKETING OPERATIONS
Given our respective business at hand which is an alternative dispute resolution law firm.
Entry, in to the market will not be a problem as the AWK and advocates law firm will be a
market leading law firm, simply filling in the demand for good, quality and cheap alternate
dispute resolution services which is not commonly provided by law firms. More especially to the
low income earning population who cannot afford the high litigation fees and those who wish to
settle disputes among them amicably without having to go to courts.

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We will take advantage of the location of our law firm which is a popular mall and this in turn
will enable us to originally build our clientele. A start up amount has been set aside for the
marketing plan at hand.
Given the law firm market today, it is imperative to have a mixed marketing strategy so as to
reach all our respective clients which is the desire of AWK and advocates law firm. We intend to
hire a public relations firm to handle the relations between AWK and advocates law firm and the
general public including its clients and employees. This is with the expectation that this will save
money by outsourcing the costs and in prospective will increase business due to their expertise.
Ideally, we shall use marketing strategies such as;
● Public Relations, so as to bring awareness to our law firm, we shall work effectively with our
public relations firm so as to market our law firm.
● Online marketing, whereby we shall enter an online zip code where we shalladvertise our law
firm using online banners and pop ups and according to the regulations put in place by the law.
● Social media marketing, social media sites such as: Facebook, Instagram, twitter and google
plus will be used to expand our network and bring in more guests using key word advertising
placement and using websites such as wakilicms to build our brand identity and in turn spread
through word of mouth advertising.
OPERATIONAL PLAN.
The law firm will be open for approximately twelve hours per day for six days a week with the
exception of Friday and Saturday. Each partner will write the work schedule of the lawyers
working in his department. This schedule must be in accordance with the requirements of the
applicable law. It must also be in a manner that will allow the increase and decrease of hourly
labor according to the client volume in order to maintain a consistent labor cost control. Proper
communication and interpersonal relationship skills will ensure that high quality services are
offered to clients in a satisfactory manner. The law firm layout including the lobby, boardrooms
where negotiations between clients will take place and pre- trials in case of a trial case and the
reception desk have been designed for efficiency, effectivity and the comfortability of the clients.
The office layout will be an open layout which will allow for lawyers working in the same
department to freely interact, exchange knowledge and save time at the same time. The senior
official such as the senior and junior partners will have enclosed office all located in the same
floor for easier accessibility.
Upon arrival of a new client, the guard at the door will direct him or her to the reception desk. At
the reception desk the receptionist will ask the client how he would like to be assisted and
precisely to know the department to direct him or her. After knowing the department to direct the
client to, the receptionist will then call the partner in charge of that department and inform him or
her of the new client. The partner will receive the client and then assign one of the lawyers
working in the department the case and in case of a serious matter handle the case himself. The
lawyer assigned the case will be introduced to the new client at the first instance and after that it
is up to him to set subsequent meetings with the client to ensure they are well informed about the

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progress of their cases. At the conclusion of the case, the lawyer will be required to write a
detailed report to the partner to fill him in on how the case goes.This is well demonstrated
through the following physical layout:

entrance

Reception desk

offices offices
Common area

Conference room

G
Lavatory/washrooms Filing room Staff lounge
kitchenette

PESTLE ANALYSIS : POLITICAL

There are political factors that will affect our law firm mostly given the fact that politics and law
interplay. Some of this factors include: the political stability in the country and the power regime
at the time in the country since the different leaders have different policies and the structures put
in place for settling disputes.
ECONOMIC
These factors will include: the level of income of the majority of the population in the country,
prevailing prices of legal services in the country, economic growth and development of the
country’s economy.

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SOCIAL.
This will include the relations among people in the society including how people settle the
disputes among them seeing that the firm will focus on dispute relations. This will help the firm
to know which part of society to target to get clients.
TECHNOLOGICAL.
Technology is not constant but will change from time to time. The firm should be able to keep
abreast with the technological advancements in the economy to avoid being obsolence.
LEGAL
Considering the main area of focus of any law firm is the law. The law firm will make sure that
all the legal staff in the firm is well aware of all the applicable in the areas of practice of the law
firm. There also be a small library in the law firm that will have books of reference which the
associates can access in case of a legal matter they are not well conversant with
ENVIRONMENT
The environment have a great impact on the location where to set up the law firm. The place
where the law firm is set should be secure, have clean and pure air, close to clients and free of
any other pollutions like noise and water. This will go a long ago to attracting clients to the firm.
RECORD MANAGEMENT
Clients information will be recorded in a file which will be open upon first visit of the client to
the firm. The most vital information will also be required to be stored online in folders to be
created on the computers to be given to the lawyers in the firm. Each department will have its
own file room with restricted access to the record management personnel to ensure order is
maintained in the file room. The files will be arranged in a numerical order in the order in which
the clients are enrolled in the firm. The files will also be distinguished by color. Unwanted and
irrelevant documents will be shredded to ensure they do not land in unwanted hands. Clients files
will be physically stored for a maximum of ten years after which the office will hold a born fire
in the yard of the company and burn them off. The online files will however not be destroyed.
In managing emails between lawyers and their clients and between the lawyers themselves the
two will be required to be stored separately and individually by the lawyers. They will be
separated in files and will be stored for a maximum of one year upon which they will be
discarded. However, a printed softcopy is required to be made of every email and stored in the
clients’ files. In the case of text messages each lawyer will be given a company smart phone
which is to only be used for communication with clients. There will be penalties to those who
use the phone for personal communication. Th airtime and internet for the phones will be
provided for by the firms’ financial department.
BILLINGS AND PAYMENTS
Charges made on clients will be in accordance with the Advocates Remuneration Order and
billing will be based on time spent working on the clients’ case. Payments will be collected by

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the lawyer at the conclusion of the case. Payments will not be made in cash but will be required
to be made in cheques to be cashed into the bank account of the law firm. The bank account will
be managed by the finance department which will comprise of accounting experts. The lawyers
will only collect the cheques. This will help reduce level of theft in the firm.
Talking of payments, it also necessary to consider the salaries to be paid to the staff in the firm
STAFF AMOUNT
Managing partners 200,00
Senior partners 150,00
lawyers 100,00
Finance manager 120,000
receptionist 80,000
Tea and cleaning lady 45,000
Records staff 60,000
Research assistants 60,000

FINANCIAL PLAN.
Total startup costs will Ksh49, 380, 000, approximately 50,000,000
39, 000, 000 will be contributed by the partners and the remainder will be secured through a
bank loan from equity bank.
START UP EXPENSES AMOUNT
(ksh)
Graphic logo and name 100,000
creation
Premises and leases deposits 490,000
Contingency 10,000,000
Outdoor sign 100,000
Building improvements 5,000,000
Working capital 20,000,000
Preopening expenses 1,000,000
Total startup costs 36,690,000

START UP ASSETS AMOUNT

(KSH)
Artwork 80,000
File room shelves 800,000
Art, décor 200,000
Portioned Wood desks 5,500,00
computers 2,100,00
Smart phones 1,890,000
Files 910,000

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 Printer machines 2,970,000
Boardroom screen 650,000
Lobby sofa seats 1,200,000
Coffee maker 100,000
Cups and mugs 20,000
Receptionist desk 80,000
Air conditioners 100,000
Total startup assets 16,600,000

PROJECTED PROFITS AND LOSSES.

The table below shows modest increases in revenue over the first three years with adjustments to
inflation.
PROFORMA YEAR 1 YEAR 2 YEAR 3
PROFIT AND
LOSS
INCOME
client payments 115,422,028 123,855,235 127,443,161
Advice services 46,708, 554 50,113,179 51,573,222
Gross profit 68,713,474 50,113,179 51,573,222

EXPENSES
auditing 500,000 612,000 810,000
insurance 1,499,035 1,582,069 1,597,325
permits 90,000 93,604 95,262
rent 2,400,000 3,600,000 4,200,000
salaries 2,130,000 2,350,000 2,780,000
tax 19,286,176 20,373,899 20,729,681
Tax expenses 25,905,211 28,611,572 30,212,628

Net profit 42,808,263 45,110,484 45,657,311

PROJECTED CASH FLOW.

YEAR 1 YEAR 2 YEAR 3

CASH
RECEIVED
Client payments 115,422,028 123,835,235 127,443,161
Owners 39,000,000
investments
Additional cash 15,500,000

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 received
Sub-total cash 125,946,071 123,835,235 127,443,161
received

EXPENDITURE
Cash spent 125,946,071 79,418,790 81,016,481
Loan repayment 2, 177, 000 2,481,780 2,829,229
Sub-total cash 128,123,071 81,900,570 83,845,710
expenditure

Net cash flow 41,848,952 41,934,735 43,426,680

RISK MANAGEMENT.
THEFT.
Theft, fraud and burglary is a risk well foreseeable in a law firm. This can be mitigated by taking
an insurance cover to indemnify in case of its occurrence. This can also be managed by fitting all
the entrances, exits and safes in the company will motion detector locks and 1biometric
identification systems in offices to restrict entry to only authorized personnel.
MARKETING RISKS
This include losing of clients and clients being porched by the competing firms. To prevent this
from happening we will ensure that our clients receive quality services and are fairly charged.
We have to maintain a good relationship with clients by trying to always give them the outcome
they expected. This will be managed by outsourcing a public relations firm that will deal with
this lawyer-client, employee-employer and employee-employee relationships.
FINANCIAL RISKS.
This are risks that involve money. The business will not always run at a profit but will time and
again make losses. The senior partners of the firm need to ensure that the firm is always running
even when it is making losses. This can be done by taking an insurance cover for the firm and
saving the surplus profits to be used during difficult times.
RISKS OF FIRE.
This can be managed by ensuring that the building is fitted with fire extinguishers to be checked
and serviced monthly. The firm should also be fitted with fire exits which are easily accessible.

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