Strategic Thinking: A Proven Formula for Business Growth
Exclusively for Russian Lawyer, business development consultant Natalia Klein shares insights on business and market analysis, goal setting, and company positioning strategies.
When planning a legal business, one of the most critical factors for success is having a multi-year development strategy. If your firm has been operating without one, now is the time to create it. Sustainable business growth requires both vision and planning. Clear direction, a well-defined strategy, and disciplined execution guarantee systematic progress. Without a plan, expect inconsistency, unstable client flow, and chaotic marketing efforts. So what exactly goes into a business strategy, and how do you create one?
At its core, a strategy consists of two main components: information analysis and marketing tool selection. These can be broken down into four key steps:
- Internal business and resource assessment
- Market and competitor analysis
- Identifying unique value propositions, positioning, and goal setting
- Selecting growth and marketing tools
Let’s explore each step in detail.
1. Internal Business and Resource Assessment
Before developing a strategy, you must evaluate your starting point. This applies both to established firms and startups.
Most often, strategy becomes a priority for firms that have been operating for some time and recognize the need for structured growth. Here are key questions to guide your self-assessment:
What Kind of Company Are You?
While this may seem simple, many struggle to articulate it clearly. Yet, your answer shapes your entire strategy—positioning, goals, and growth path. It also directly impacts sales, as how you describe yourself internally is how you’ll present to clients. Vagueness here leads to a muddled service offering.
Ask yourself:
- What does your firm do?
- Why does it matter?
- What are your aspirations?
What Services Do You Offer?
Another seemingly obvious question—but many firms operate without clear service definitions. Lawyers might say they "handle everything legal," but this lack of specialization is a competitive disadvantage.
Analyze your project history: Do you actually focus on litigation, corporate conflicts, private client work, etc.? Clarify what you do now and what you want to specialize in. This informs your market positioning.
What’s Your Team Like?
In legal (and most consulting) businesses, people are the core asset. Assess:
- Organizational structure and hierarchy
- Individual strengths/weaknesses
- Skill gaps to address in your strategy
Who Is Your Client?
A foundational question for strategy.
- Current clients: Who are they? Businesses (large/mid/small) or individuals? Decision-makers’ profiles? Industries served?
- Aspirational clients: Who do you want to serve? This analysis reveals growth opportunities.
2. Market and Competitor Analysis
Legal firms often neglect this step, assuming the market is too homogeneous. But differentiation lies in the details.
After completing your internal audit, compare yourself to competitors in your niche. Key questions:
- Who are they?
- What services do they offer?
- What are their team strengths/weaknesses?
- Who are their clients?
- Pricing models?
- Unique selling points (USPs)?
- What marketing tools do they use?
3. Defining Uniqueness, Positioning, and Goals
Legal markets are saturated with similar-looking firms. Standing out requires deliberate positioning.
Where to Find Your USP?
From your earlier analysis, explore differentiation in:
- Service type: Specialization beats "we do everything."
- Service delivery: Do you offer comprehensive support, niche expertise, or innovative approaches?
- Client industries: Focus on sectors like finance, pharma, or IT. Few firms do this—making you instantly memorable.
Goal Setting
Define 3–5 year objectives:
- Desired firm size/team structure
- Service focus
- Target client profiles
- Revenue/new client targets
4. Marketing Tools
This comes last—not first. Many lawyers jump straight to tactics without strategy, wasting resources.
Essential Tools for Legal Businesses:
- Professional website aligned with your positioning.
- High-quality visuals: Brochures, presentations, business cards.
- Legal rankings participation (and niche industry awards, if specialized).
- Events: Conferences, seminars, webinars in your specialty.
- Media engagement: Articles, columns, expert commentary.
- Social media: Focus on Facebook (most effective for legal); Instagram depends on your audience.
- Client relationship management: Maintain a database and regular touchpoints.
Final Thoughts
Crafting a strategy is complex, but indispensable for firms aiming to grow systematically. Whether you’re refining an existing practice or launching anew, these steps provide a roadmap to clarity, differentiation, and long-term success.
