Six Tips for Developing a Business Plan for Uncertain Financial Times
Share
- Six Tips for Developing a Business Plan for Uncertain Financial Times
- Johnson Financial Economist on the Election and the Economy
- Johnson's Ceci sees normalized earnings leading to a sideways market
- Most Corporate Charitable Contributors in Wisconsin, JFG Ranks #16
- Deloitte ranks Wisconsin's 75 largest privately-held companies by revenue
- Retirees, It’s Time to Give Yourself a Raise. How to Keep the Cash Flowing for Decades.
- Notable Women in Wealth Management: Kelly Mould
- Coolest Thing Made in Wisconsin contest now open
- Shaping the future of wealth management with empathy and vision
- Life's financial milestones; expert shares formula to navigate challenges
- What Is the Average Retirement Savings for Gen X?
- Johnson Financial Group's CIO, Tim Brown, Nominated for Prestigious ORBIE Award
- Why one 69-year-old woman initiated a 'gray divorce'
- Johnson Wealth appoints former U.S. Bank exec as its president
- The Power of Money with Kyle George
- Johnson Financial Group Expands Wealth Management Team with David Dauchy and Brad Mazola
- Divorce rates among baby boomers are soaring, putting women’s financial security at risk
- The Latest Tech Trends in Financial Services with Tim Brown, CIO at Johnson Financial Group
- Johnson's Ceci: Hard landing potential rises until rates start falling
- Peter Speca Joins Johnson Financial Group
- When Retirees Give Away Too Much Money
- $10bn Shop's Top Gatekeeper Gets ‘Interesting’ With Fixed Income
- After ‘rock fight’ in 2023, banks see businesses taking wait-and-see approach
- What does your spouse want in retirement? 6 questions to ask.
- When Retirees Give Away Too Much Money
- Johnson Financial Group: Expands presence in Madison new West Towne location
- Johnson Financial Group Shares Tips for Buying a Home in 2024
- Advisors Urge Caution On Penalty-Free IRA, 401(k) Early Withdrawals
- Donations of nearly $70K pour in following tool theft from Waukesha Habitat for Humanity
- Dominic Ceci appointed Chief Investment Officer for Johnson Financial Group
- Associated Bank, Johnson Financial partner to provide funding for affordable-housing project in Madison
- Understanding Interest Rates and Unlocking Financial Power
- Ben Pavlik, Top Corporate Counsel Award
- Your Guide to Women’s Wealth Management
- Tim Sheehy appointed to Board of Directors
- WMC, Johnson Financial Group: Announce 2023 Coolest Thing Made in Wisconsin
- Johnson Financial Group ready to serve Lake Country community
- Most Corporate Charitable Contributors in Wisconsin
- Preparing Clients For The Risk Of Cognitive Decline
- Johnson Financial Group expanding with acquisition in Appleton
- How Big A Gamble Is Monte Carlo For Advisors?
- Married … With Finances
- Johnson Financial Group CEO discusses branch strategy with one set to open and another in the works
- Squire to retire after nearly two decades as Johnson Bank regional president
- Bringing a Personal Touch to Digital Banking
- At This Rate: Financial Institutions Dealing with Higher Interest Rates and Lower Loan Demand
- Table of Experts: Reading the tea leaves
- Checking in on Wisconsin banks
- Beyond Lip Service In DEI
- Johnson Financial Group to sell its insurance business to Boston firm
- Johnson Financial Group plans new branches, including in West Milwaukee
- New Johnson Financial Group Branch Planned In West Milwaukee and Delafield
- Johnson Wealth Fixed Income Tilts at Emerging Markets Debt, Mortgage Backed Securities
- Your Financial Foundation with Al Araque on the Lifeblood Podcast
- Unexpected health insurance surprise possible when pandemic insurance programs expire
- Bond Investors: Be a Prudent Pig, not a Yield Hog
- Women Insurance Pros on Balance, Community and the Future
- Financial Planning For Couples Who Totally Disagree
- How To Help Clients Who Own Businesses in Declining Industries
- Johnson Financial Group presents 'Lightfield' coming to Cathedral Square Park
- Johnson Financial Group Named Top LGBTQ Workplace
- Financial advice is the midlife job that women want – but don’t know exists
- Expert Insight for Beginner Rental Property Investors
- Coolest thing made in Wisconsin announced by WMC and Johnson Financial Group
- Corporate Charitable Contributors in Wisconsin
- 'Coolest Thing Made in Wis.' voting begins
- Johnson Financial Group and Habitat for Humanity Kenosha work together to help homeowners
- We have a responsibility to be solution providers for our customers
- Being a leader is a team sport
- Jason Herried Joins Chuck Jaffe on Money Life
- Have questions about "Gray Divorce"? Attorney Kelly Mould, CRP® can help.
- Jazz in the Park Is Back Thursday Nights Starting July 21
- People in Business - Al Araque
- 2022 Housing Market Overview: Everything You Need to Know
- "Give Back More Than You Take" - Helen Johnson-Leipold
- A Brief History of Economic Crises, Crashes and Recoveries
- Kelly Mould and Kate Trudell Earn State Bar Award for Outstanding Service
- JFG Supports Affordable Housing through FHLBank Chicago
- Helen Johnson-Leipold shares business tips for success at Marquette speaker series
- Notable Commercial Banking Leaders: Thomas Moore
- Notable Commercial Banking Leaders: Viktor Gottlieb
- Johnson Financial Group partners with Racine Habitat for Humanity to service mortgages at no cost
- Upcoming Lineup Of Broadway Shows Announced At Marcus Performing Arts Center
- See the Milwaukee Business Journal's 2022 Real Estate Award winners
- Joe Maier “Employers are going to have to rethink their practices”
- Emotional Investments: Why They Happen and How to Avoid Them
- Investors are a growing force in the residential real estate market, but how should sellers evaluate these offers?
- Inflation advice for younger colleagues
- Amber Krogman: 40 Under 40
- Rising Stars in Wealth Management: Robert Schneider
- Should You Sell Your House to an Investment Company?
- Evoking change within the Milwaukee community with Johnson Financial Group's Jim Popp
- A Shift in the Tech Landscape
- Evoking change within the Milwaukee community with Jim Popp, CEO of Johnson Financial Group
- The Rising Trend Of "Gray Divorce" with Kelly Mould of Johnson Financial Group
- Evoking change within the Milwaukee community with Jim Popp, CEO of Johnson Financial Group
- Johnson Financial Group Recognized on Financial Planning's 2021 RIA Leaders List
- Find out why these business leaders are 2021 Milwaukee-area power brokers
- Thoughts for business executives on future-proofing a business
- Jim Popp Joins Fox 6 to Announce the Milwaukee Holiday Light Festival
- Milwaukee’s Holiday Lights Festival Kicks Off This Week!
- #FreeBritney: When Protections Turn Toxic
- WisBusiness: the Podcast with Jim Popp, president and CEO of Johnson Financial Group
- WE Energies Customer Spotlight On Energy Efficiency
- Johnson Financial Group donates $500,000 to United Way organizations across Wisconsin
- Madison’s Moving Business Forward Podcast
- Thoughts for business executives on return-to-office technology
- First look: Johnson Financial Group's new Downtown offices and branch
- Johnson Financial Group Shows Off High-Rise Office
- Is Bitcoin Here to Stay? An Assessment of Opportunities and Risk
- You may have a ‘huge edge over high-powered investors,’ says investing risk expert: Here’s why
- Executive Insights with Jim Popp
- CEO Jim Popp Honored as Distinguished Executive
- Webinar: Cybersecurity Made Simple
- 2021 Guide to Wealth Management: A War on Wealth?
- Notable Alumni: Scott Cooney
- Jason Herried Joins Chuck Jaffe on Money Life Market Call
- Top Workplaces 2021: Q&A with three CEOs who were recognized for their leadership during a challenging year
- How will Biden's new tax plan affect you?
- American Jobs Plan: Potential Implications for You and Your Business
- Get on the Right Track to Financial Freedom
- Greater Madison area Top Workplaces 2021
- The Crazy Housing Market: Buy, Sell or stay on the sidelines?
- UPAF Ride for the Arts series will take place over three June weekends
- Financial services industry helped guide businesses through sharp downturn: Banks hustled to meet massive PPP demand
- Financial services industry helped guide businesses through sharp downturn: Banks hustled to meet massive PPP demand
- Johnson Financial Group matches food donations to help feed Wisconsin families
- Johnson Financial Group: To donate $300,000 to help feed Wisconsin families
- Women in Leadership: Sharing & Celebrating Women's Stories
- 2020 Milwaukee-area power brokers
- Dow Surges to Highest Level Since February on Vaccine Results, Biden Win
- Johnson Financial Group Named One of Wisconsin's Largest Corporate Charitable Contributors
- Don't forget about the "I" in D&I
- Johnson Financial Group to move Milwaukee offices to Cathedral Place
- Pandemic Uncertainty Leaves Wisconsin Bankers Ready To Reserve
- What's going on in the financial markets right now with Jim Popp of Johnson Financial Group
- Downside risk is now a pit, not a chasm. Still, underweight stocks & overweight (some) bonds.
- Why You Want To Keep Your Politics Separate From Your Investing
- Johnson Financial Group growing, still hiring on its 50th anniversary year
- The COVID Calculation
- Pleasant Prairie company gets boost from Paycheck Protection Program
- Banks locally, statewide step up to help businesses obtain $8.3 billion in PPP
- Johnson Financial Group donates $200K to support United Way, other nonprofits during COVID-19 pandemic
- Second round of PPP starts slowly as Milwaukee-area businesses still await loans
- Wisconsin lenders ready to shell out hundreds of millions in Paycheck Protection Program loans
- Planning opportunities under the CARES Act
- BizTimes Media Announces Milwaukee’s Notable Women in Commercial Banking
- Johnson Financial Group adviser honored
- Tech-driven R&D goes beyond the budget. Some Milwaukee execs speak up
- What would cause markets to react after Fed meeting
- Banking official remains confident in local economy's growth
- Rock County home prices continue to climb
- The coolest thing made in Wisconsin
- Dan Defnet named president of Johnson Bank
- Future Returns: Ignore Politics When Investing
- Local banker to get Forward Janesville's Lifetime Achievement Award
- Wisconsin Could See Economic Slowdown This Year, Not Recession
- When Corporate Bonds Are a Risky Investment
- Johnson Financial Group becomes Broadway at the Marcus Center title sponsor
- Getting Ready to Exit: What Baby Boomers know and should know about getting their business ready for sale
- Take Five: Putting some Popp in banking
- Jim Popp in the News
- Jason Herried's Take on the 'Booms and Busts' of the Economy
- Johnson Insurance creates new 'workplace of choice'
- Paul Ryan lauds Harvard award-winner Helen Johnson-Leipold
- Business Leader of the Year Helen Johnson-Leipold leads big parts of the Johnson family business
- Johnson Financial Investment Expert: More growth, low inflation ahead
- Foxconn's Balance Sheet Tipped in Mt. Pleasant's Favor
- JFG honored by Department of Defense
- The Open Road comes to the Milwaukee Art Museum
- 3 business lessons from the new Johnson Financial Group CEO
- Executive Q&A: Jim Popp takes the helm at Johnson Financial Group
- Banking exec Jim Popp named president of Johnson Bank
- Banker: Focus on millennials, not president
- American Birkebeiner Legacy Lives on with Support from Johnson Bank and Johnson Family Foundation
- TEMPO MILWAUKEE 2020
Lawyers should have a business plan and contingency financing in place to weather uncertain financial times that cannot be addressed with conventional strategic planning. State Bar of Wisconsin Law Practice Assistance Manager Christopher C. Shattuck and Courtney Searles, senior vice president and private banking regional manager for Johnson Financial Group, discuss best practices for business planning.
Lawyers, is your firm ready for the unexpected?
In the early stages of the pandemic, we interviewed attorneys from across Wisconsin to discuss strategies for increasing profitability.1
Recommendations included diversifying practice areas, accepting electronic payments, offering alternative payment plans, building out referral networks, and increasing client loyalty.
These are great strategies for long-term planning, but other strategies are needed to address unexpected events.
Here are six tips to help you weather uncertain financial times.
Tip #1: Set Up a ‘Rainy Day’ Fund
Having dedicated funds that are set aside and saved for rainy days can help law firms through revenue shortages. When determining the appropriate amount of reserve funds, lawyers should take a close look at their revenue cycles and fee arrangements.
For instance, law firms that look to revenue solely from contingency fee cases may need to have larger reserves than firms that rely upon hourly revenue, which is typically collected after the end of each month.
As a baseline, it is recommended that law firms have at least three months, and ideally six months, of reserve funds in place to cover monthly salaries and expenses, says Searles. These reserve funds can serve as a lifeline for law firms until additional revenue can be realized.
If reserve funds are not enough to cover unexpected downturns, businesses can also turn to short or long-term loans.
Tip #2: Obtain Credit during Good Financial Times
Financial institutions underwrite – or assess a borrower’s creditworthiness – based on various ratios, says Searles. Being in a strong financial position will generally increase the bank’s comfort level.
“A prudent business – whether a large or solo firm, will have a contingency plan in place, which includes access to funds when needed,” she said.
In a downturn economy, for example, banks may tighten their credit policies, which could make it more challenging for even a successful firm to obtain credit.
Alternatively, when a practice experiences hardship, it may not meet parameters necessary to prove creditworthiness to a bank.
Instead of waiting for financial downturns, lawyers should work with their banks during good financial times to obtain favorable credit lines. This is most optimal time to establish a lending relationship with your bank, especially when access to the credit may not be immediately needed.
Tip #3: Be Familiar with Your Financial Institution
There are a variety of loans available to lawyers, depending on how their law firms are structured.
A line of credit can help law firms in times of cash flow needs by providing immediate access to financing when revenues are unexpectedly low. Term loans are also available for tangible purchases, such as buildings, technology, or leasehold improvements. Partnership loans are also helpful to facilitate partner buy-ins, retirements, or other transition events.
It is recommended that law firms establish a good working business partnership with their financial institutions, as they can help identify the best financing solutions for various scenarios.2
Tip #4: Create a Business Plan
“A firm’s business plan should really operate as the backbone of the business and it serves as a roadmap for success,” Searles says.
In uncertain times, a business plan is the doctrine that can help provide sound advice and strategy. In prosperous times or periods of growth, it can also help to guide the firm and maintain a clear path.
The plan should be reviewed annually, and adjusted as circumstances change. A business plan should include key components regarding the firm’s strategic objectives, resource utilization, marketing goals, financial management, and action items that support the overall mission of the firm.
- Searles recommends answering the following questions in your business plan:
- What is your mission and why is that your mission?
- What makes you different from your competitors?
- Does your firm have a niche that provides your firm with a strategic advantage over others?
- What expenses would you be able to cut during uncertain financial times?
- How much cash does your firm need to stay in operation for six months?
There are several resources that are available to help with creating and updating your business plan. Start by contacting your financial institution and establishing a business banking relationship. Other options include downloading free templates from the U.S. Small Business Administration, Wisconsin Women's Business Initiative Corporation, and SCORE.
Tip #5: Add Value to Your Business Plan
Whether you are establishing a firm, considering expansion, or a transition plan, building partnerships with a knowledgeable banker, accountant, insurance agent, and financial advisor will help you reach your goals faster and optimize your resources.
“In addition to a well-prepared plan, building a team of trusted advisors to help guide your business is critical,” Searles says.
Tip #6: Look into Supplemental Coverages
Lawyers should consider having additional protections in place outside of business plans and loan options, such as business insurance (property, data, liability, and workers' compensation), retirement plans and savings, and fraud prevention services.
“These supplemental coverages can help ensure that lawyers do not end up turning to their own resources when issues arise,” Searles says.
Conclusion: Now Is the Best Time
“Do not wait until it is too late before you engage in financial planning for your firm,” Searles says.
The best time to explore credit sources is during optimal financial times, when credit is readily available and firm finances are sound. Establish a good working business relationship with your financial institution and develop a business plan. Also, consider adding supplemental coverages for unexpected events.
“The value in properly planning for uncertain financial times could mean the difference between a quick rebound and slow economic recovery for your firm,” Searles says.