284 Chapter 12
and how these funds will derive from project revenues, costs, and profits. Developing financial statements
assists in understanding the cash flow of a business, its break-even point, and the sensitivity of the busi-
ness to fluctuations in product costs and market factors. The financial plan would ideally consist of:
- a 12-month profit and loss projection
- three- to five-year profit and loss projection (optional)
- one-year month-by-month cash-flow projection
- projected balance sheet
- break-even point
- personal financial statement of owner
Together they constitute a reasonable portrayal of your company’s financial potential. In all cases,
it is strongly advised to consider seeking legal counsel to be sure the plan and business venture are le-
gal and meet your requirements. In addition, the service of an experienced accountant is important. Un-
less you are prepared to construct spreadsheets and graphs explaining how you intend to use your
money and your projections for the future, you might want to hire someone who knows all the financial
ins and outs of a business.
Factors for Success.
There are many factors that will impact the chances of a new company’s success. They all require de-
voting considerable effort in personal networking with attorney groups and other potential clients in your
area. Some of these factors include:
- Extensive network: A single contact may yield a lucrative contract, but it takes a strong network
to yield a continuing stream of work. - Excellent communication skills: Most executive-level professionals have excellent verbal skills,
and this ability is one of the primary determinants for achieving success. Writing skills are an en-
tirely different matter and can be a major challenge to those who largely depend on others to put
pen to paper. - People skills: Fundamental to any successful business is relating effectively to others—clients,
employees, suppliers, and consultants. Successful businesspeople invest in developing their
communication and interpersonal skills. - Hard work: In private practice there is some flexibility in work hours, but this is no eight-to-five
job, and hard, focused work and effort are needed to build the practice. - Self-direction: Some people have great difficulty in working on their own initiative and need a
structured environment to perform. Independence can be freeing, but it can also be lonely; some
people require daily, face-to-face interaction. This is especially true of individuals, who work out
of their home office instead of renting space in a corporate office park. - Marketing skills: Some people are shy and introverted, but if you are not willing to engage in re-
lentless self-promotion, you may not be able to bring in sufficient new business to succeed. Iden-
tify your target market. There should be specific target markets that will need your services and
be willing to pay for it. Outline a marketing strategy with a competitive edge that draws cus-
tomers to you and your company rather than the competition. Clients can come from a number