As a law firm owner, generating leads and signing up cases is just one part of the equation. You need to have a strong financial strategy in place to make sure your firm doesn’t suffer financially in the long run. In this blog post, we’ll discuss some of the best tips from T. Jayden Doye, CPA, the law firm CPA, on how to create a firm you can scale so you can truly get the most out of your marketing efforts.
You can also catch a LIVE webinar with T. Jayden Doye, CPA, the law firm CPA as I interview him on this topic. Sign up below:
T. Jayden Doye and I both agree that the first step in creating a scalable law firm is to get your mindset right. You need to focus on engineering the type of firm you can scale. This means working on your business more than you work on your business. It’s important to remember that you want to make more money, but you don’t want to burn out in the process. Maintaining a healthy work-life balance is important for the long-term success of your firm.
While it’s important to know where your money is going and be mindful of expenses it is equally important to invest in things that will grow your business, beginning with people. T. Jayden Doye suggests that you hire early and delegate as much as possible to avoid creating a business that can’t run without you as an employee. This allows you to focus on business development and growth, while your employees handle the day-to-day tasks. Investing in technology and marketing strategies is also crucial for scaling your law firm. If you want to grow your law firm, delegation is the key. You need to hire early and delegate tasks to your team. This will free up your time to focus on tasks that are more valuable to the firm, such as marketing or business development.
Investing in tools is a great idea when you’ve done your research and you’ve picked the best tools that are going to save you money and time. AI or other software solutions can help your team execute legal tasks faster. You can also use case management tools like Clio, Cosmolex, and My Case as well as a marketing CRM. Marketing tools that integrate with your case management system will help you follow up with leads with ease and can also help you nurture leads that convert into clients with unique campaigns that will improve their customer experience. This will get you more referrals and repeat business over time. Using tools to help you get more leads, sign more clients, and manage their cases will save you and your team countless hours. You can do this so that your labor is working on those priorities that match the salaries you are paying out, rather than on admin tasks or other marketing efforts that can be automated. Saving $10 on a platform only to have a $ 30-an-hour employee complete tasks manually does not add up.
T. Jayden Doye stresses that your CPA firm should hold you accountable and manage the books on a daily basis. As a law firm owner, managing retainers and other financial disputes can be complicated and overwhelming. This is particularly true when you consider the additional burden of IOLTA rules and regulations. An experienced CPA firm can help you manage your finances effectively so that you can focus on your core business, such as customer service and marketing efforts. Learn more about law firm accounting by visiting T. Jayden Doye’s YouTube channel and listening to his podcast Law & Quarter.
If you are managing retainers and deposits for your law firm, you must be well-versed in the IOLTA rules and regulations for your state. Otherwise, you could risk getting disbarred, suspended, or being reprimanded in a write-up. As a Law Firm CPA, T. Jayden Doye was inspired by his experiences helping law firm owners clean up serious issues with their books to write a book on how to avoid getting disbarred entitled: Don’t Get Disbarred 7 Financial Mistakes Attorneys Make That Put Their Licenses At Risk. You can download it online for FREE. Having a solid understanding of your legal responsibilities will give you peace of mind and ensure you stay accountable to yourself and your clients.
Pricing strategies can vary significantly across industries and businesses, and determining an effective model is a crucial aspect of your firm’s success. Consider what works for your law firm type and preferences then follow general best practices. Start by defining your price model, which could be a flat rate, contingency, or hybrid model. The choice depends significantly on your industry standards and the nature of your services.
Your next step involves a detailed analysis of your business metrics. Evaluate how many calls you’re receiving and how busy your schedule is. This is where you can partner with your marketing team and CMO (Chief Marketing Officer) to provide you with analytics for your leads and conversions. It’s essential to understand how much work you have and how many potential clients are reaching out.
Once you’ve assessed your workload, consider implementing a discovery call into your process. This is an excellent opportunity to demonstrate your expertise and personality, showing prospective clients the value you bring to the table. It’s also a chance for you to understand their needs better, further tailoring your services and pricing.
Finally, consider organizing webinars. Not only do these events provide a platform to share your knowledge and establish your authority in the field, but they also serve as a motivational tool for prospects to invest in your services. Remember, before anyone cuts a check, you must establish your value and worth.
Did you know there are tax benefits to hiring your spouse and/or your children within your firm? It’s an avenue worth exploring, as it can lead to an uptick in revenue while simultaneously lowering your tax liability. This strategy allows you to distribute income within the family, reducing your overall taxable income. Moreover, if established correctly, this can also provide family members with income while staying in lower tax brackets. Consequently, the entire family benefits from the business’s success, while the firm enjoys a reduced tax burden. This approach is definitely a win-win scenario worth considering for your firm.
There’s no doubt that a robust financial strategy is essential for any marketing plan to succeed. As a law firm owner, it’s important to focus on engineering a firm you can scale. This means delegating tasks, investing in the right tools, ensuring professional accountability, pricing properly, understanding the IOLTA rules and regulations, and leveraging tax laws. By following T. Jayden Doye’s tips, you can create a successful law firm that is financially sound and scalable, while still maintaining a healthy work-life balance.
T. Jayden Doye is the founder and CEO of Prestige Accounting Solutions, a CPA firm that specializes in Law firm Accounting. With expertise in legal accounting, Jayden’s journey has inspired many law firm owners to scale their firms and achieve greater success in less time and with greater ease. To learn more about T. Jayden Doye you can visit talktojayden.com to schedule a complimentary consultation. You can also grab a copy of his best-selling book, Raise the Bar: The 6-Step Method to Shift from 6-Figure Revenues to 6-Figure Profits in Your Law Firm on Amazon.