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How to avoid pitfalls in an uncertain economic context

by With No Comment Lawyer EntrepreneurDigitalizationProductivity

More and more lawyers are discovering the power of BI or Business Intelligence.

Yes, it's a somewhat barbaric term and not necessarily very clear.

Explanations.

For a long time #lawyers had to juggle sources of information as diverse as they were varied to get an idea of ​​the economic activity of their firm. We obviously think of Excel tables, updated as often as possible but which quickly become obsolete. You then have to get back to work.

Another source is the accountant. A phone call or an email provided more or less rapid feedback to find out the turnover achieved to date and, in the best case scenario, whether the firm was generating a result or not.

In an economic context that is tense and becoming more and more uncertain, this artisanal mode of operation no longer meets the challenges. The parameters are identified:

☣️ galloping inflation
☣️ rise in interest rates
☣️ purchasing power of households at half mast
☣️ economic slowdown, possibly recession
☣️ deterioration of the geopolitical situation
☣️ health crisis and successive waves of confinements

The events that have occurred since 2020 have taught us that nothing is impossible, even the unimaginable.

But it goes both ways. The worst is never certain 🌈!

In this context full of challenges, it is crucial to see as clearly as possible. Well-ordered charity begins with oneself. To avoid being a passenger dependent on the vicissitudes of the market, it is better to be in charge.

This is where BI comes into play!

The lawyer needs performance indicators like the captain of an A350 needs his dashboard. It's when the weather gets bad that he needs to know his route while avoiding traps.

The important thing here for any lawyer is to identify the strengths and weaknesses of their firm. To do this, it must have several indicators and monitoring tables. Let us cite a few particularly essential ones:

📈 The turnover achieved to date + forecast

📊 The amount of unpaid amounts overall and per customer

📈 The elderly scale

📊 Customers to bill

📈 Profitability per File and per Client

📊 The top 10 Customers by CA excluding tax

📈 The top 10 Files by CA HT

Updated 29 / 08 / 2022

Automate

Of course, these detailed indicators and tables should act as facilitators, meaning that they should not represent an additional workload for lawyers. 

The update must therefore be entirely automated, this is a key point in the success of the approach undertaken by the firm. Thus, even when carrying out your activity alone, you can have the same information as structured firms with greater resources.

Precision

Beware of an overdose of information and indicators. But even with the right indicators in place, it is necessary to be able to target the information sought. Each indicator, each table must offer the user the possibility of being able to filter the information to be displayed to allow him to visualize only the expected results. Better understanding a situation requires usable information. 

The power of the Cloud

This is where one of the main advantages of SaaS solutions lies, developed specifically to be intuitive and always available.

Because this is the other challenge: being able to consult these key indicators at any time and wherever you are. This means that the lawyer must be able to connect to the firm while traveling, from their own computer or from third-party equipment, without ever putting their data at risk.

This is a notable difference with the usual Excel tables: having a real BI allows you to consult your performance indicators as soon as it is necessary, simply and immediately. It's much simpler and more flexible than with an Excel table which requires a PC or a (large) tablet at least.

If the subject interests you and you want to regain control of your activity to be prepared to deal with any situation, do not hesitate to contact one of our specialists: 

Make an appointment with a specialist
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How to automate your accounting as a lawyer?

by Lawyer EntrepreneurDigitalization

Beyond being a legal specialist, an advisor and a professional who best defends the interests of his client, a lawyer is also an entrepreneur, who is led to explore all the aspects related to his profession. In this sense, a lawyer does not escape the administrative obligations that apply to all self-employed people, such as accounting for example. Together we will go through the accounting obligations that apply to the profession, as well as the best practices for automating your accounting as a lawyer. 

 

The accounting obligations of lawyers: what are the rules? 

As with all other entrepreneurs, the accounting and tax obligations of lawyers depend on the applicable tax regime. There are generally two types of plans used by lawyers to practice their independent activity:

    • – micro-BNC regime
    • – BNC regime in controlled declaration

 

 

 

Accounting for lawyers in micro-BNC

 

The micro-BNC is the regime which allows a lawyer to benefit from relief in terms of accounting and administrative obligations. In fact, a lawyer subject to this regime (often a collaborating lawyer at the start of his career) does not have to close accounts at the end of the fiscal year, nor does he have to submit a balance sheet to the administration. On the other hand, a micro-BNC lawyer is required to keep a recipe book. This lists all collections made as well as their details (the amount of fees, means of payment, date, etc.). 

The accounting of a micro-BNC lawyer is not limited only to keeping this book. As a professional, a lawyer has the obligation to issue quotes and invoices to his clients. Whether the micro-BNC lawyer invoices fees to his firm or to his own clients, an invoice is required for each service. Moreover, these tasks can prove to be the most repetitive. 

The other administrative aspect of micro-BNC lawyers concerns VAT declarations. A lawyer exceeding certain turnover thresholds (€44 and €500) becomes liable for VAT. L'subjection of a micro-BNC lawyer to VAT entails for him the obligation to prepare VAT declarations every month or every quarter, depending on the regime chosen. 

 

Accounting for lawyers in controlled declaration 

 

The accounting of lawyers in controlled declaration is more complex than that of lawyers in micro-BNC. Indeed, controlled declaration lawyers have a legal obligation to keep complete accounts (commitment or cash flow, as desired). Accounting requires: 

    • – the transmission of annual accounts to the tax administration every year (balance sheet, income statement as well as annexes). We are talking about the famous 2035 declaration
    • – keeping an accounting book which must list all the flows of the lawyer's activity, classified in the correct accounting category
    • – the obligation to keep all documents justifying activity flows (invoices, receipts, expense reports, purchase notes, etc.).

Being subject to VAT, a lawyer in controlled declaration must send his declarations to the tax authorities every month or every quarter (depending on the regime chosen). 

In the same way as the micro-BNC regime, invoicing in accordance with legal standards is obligatory for independent lawyers practicing under the controlled declaration regime. 

 

Our advice for not wasting time with accounting as a lawyer

 

As you can see, accounting and administration are no fun for lawyers. Fortunately, there are solutions to simplify your daily life as a lawyer and save time between client meetings, hearings and files. 

 

Automate as many tasks as possible

 

1. Billing 

To free up your time, consider adopting efficient invoicing software. Choose software that gives you the ability to create catalogs of recurring fees, costs and disbursements. As a collaborating lawyer, for example, you will be able to generate invoices in two clicks for your firm for the re-invoicing of fees. This is also what is proposed Jarvis Legal. You can create your own predefined activity lists, which will save you considerable time when it comes to time entry and invoicing.

2. Management of supporting documents 

Managing the supporting documents is certainly the most painful part. If you are not in the habit of doing your accounting as you go, you risk ending up with a ton of accumulated invoices and tickets. To avoid being overwhelmed, consider adopting software that allows you to digitize supporting documents by taking photos or uploading them. This will encourage you to forward your supporting documents to your accountant over time. Here too, Jarvis saves a lot of time by killing two birds with one stone: you can deposit your supporting documents in the appropriate directory in your file, which will also automatically send it to Acasi to be integrated into your accounting.

 

Delegate, you are not an accounting expert 

 

Managing your accounting, VAT returns and balance sheet alone exposes you to errors and oversights. You are not an expert in accounting, so it is better to delegate all these legal obligations to experts whose job it is. Imagine the stress and anxiety of having missed the deadline for your balance sheet or VAT returns. Call an accountant who will take care of all this part for you. This will save you time, nerves and the mental burden that accounting represents for self-employed people. With Acasi, you have a coach dedicated to your file whose mission is to support you in all these steps. 

 

Use modern solutions 

 

As we said in the introduction, being a lawyer also means being an entrepreneur. This role implies a certain vigilance and, above all, anticipation regarding the management of its cash flow. This can be tedious if you are not equipped with the right tools. Adopt tools that allow you to avoid unpleasant surprises. 

 

In summary, accounting and administrative management can be tedious if you are not equipped with the right tools. Does this mean that we need to increase subscriptions and therefore costs to remain efficient? No. Fortunately, there are all-in-one solutions that are there to help you. For example, Jarvis et ACASI offer simple, intuitive tools that simplify your daily life. Acasi, the accountant for lawyer, is both an accounting application that automates all your accounting tasks to help you on a daily basis and an accounting firm, registered with the Order of Chartered Accountants to take care of all your legal obligations. Right now, Thanks to the Jarvis x Acasi partnership, you benefit from a 10% discount on all their offers.

Go for it! 

boost your cash flow

7 best practices to boost your cash flow

by With No Comment Lawyer EntrepreneurProductivity

Cash flow is the crux of the matter. Lawyers, independent or in law firms, are just as concerned by this central problem. Especially since, very often, they have an ambiguous relationship with money. This sometimes creates situations of tension on a cash flow already undermined by the various crises experienced recently: strikes in defense of the retirement system, yellow vest movement, astonishment linked to the pandemic then closure of courts and now economic uncertainty created by the war in Ukraine.

Fortunately, there are good practices to boost the firm's cash flow and thus protect against insomnia or periods of slowdown in activity.

1. Manage your cash flow

Knowing at any time what the firm's cash flow level is constitutes the basis for any prior action on the subject.

The first step consists of regularly checking the availability in your bank account:

– If you only have one account, check the balance online or from your mobile app

– If you have several bank accounts, use an aggregator like Bankin (it’s free) which will allow you to see at a glance the total available on all of your accounts

The second step consists of anticipating expenses and expected income over the next 3 months. Create an Excel table in which you can enter income on the one hand, and expenses on the other, to then calculate the available balance each month. Click here to download the model that we make available to you free of charge. Some tips for feeding this painting

– Prioritize recurring expenses and income such as rent, various subscriptions, monthly payments (insurance, service contracts, bank charges, etc.)…

– Then enter the expected amounts in descending order to avoid forgetting which would have a strong impact on the final result

This work must be long-term. Also, it is important to protect the regular updating of this table by blocking a slot of one hour every week (same day and same time) to ensure that the table lives and is useful to you. Write it in your Outlook calendar to make sure you don't forget it.

You now have a tool that allows you to anticipate and take preventive actions to avoid finding yourself in a delicate situation. It's time to move on to the initiatives you can take to boost your cash flow.

2. Cash out sooner

For reasons that are still unclear (we have been supporting thousands of lawyers for almost 10 years), lawyers often feel uncomfortable when billing their clients or when talking to them about money. It's a shame because this often places them in a complicated financial situation that they generate themselves!

This is all the more regrettable because the longer they wait to invoice their clients, the more the bill increases and the more embarrassing the situation becomes for the lawyer. In short, it's the snake that bites its own tail! Fortunately, there are simple solutions that the lawyer can quickly implement.

These are the famous grocery bills. They allow you to collect a substantial part of the amount that the lawyer will charge in the case. A golden rule is that the lawyer systematically asks his client to honor the retainer invoice before he takes any action on his part on behalf of said client. Setting this rule from the outset will not pose a problem. On the contrary, the customer will appreciate the frankness and clarity of the remarks. Conversely, receiving an invoice when you don't expect it is always more delicate. This can consume time in explanations and justifications.

Invoice before even starting to work for your client: you are establishing a solid relationship and working in a more peaceful context. Using software like Jarvis Legal simplifies the creation and sending of retainer invoices, just like publishing personalized fee agreements to the customer's contact details.

3. Invoice your customers regularly

As the case progresses, the lawyer enters time and incurs costs on behalf of his client. It is counterproductive to wait too long to bill it, for the reasons already mentioned above. It is preferable to invoice your client regularly, which allows you to maintain a permanent and constructive dialogue. In fact, it is an opportunity to keep him informed of the progress of his file and to answer any questions he may have. If there is a pitfall, it is dealt with as soon as it appears, which facilitates its rapid resolution.

There are mainly three effective billing methods within law firms:

– Pay as you go billing

– Invoicing at the end of the month

– Billing upon reaching a level

To do this, the lawyer must have an up-to-date view of his outstanding files, client by client, to know when to trigger invoicing and for whom. Software like Jarvis Legal offer this type of functionality, allowing the lawyer to trigger invoicing with several clients in just a few seconds. Invoices are thus personalized and published on the firm's letterhead. They can be sent directly by email, accompanied by an acknowledgment of receipt and reading to facilitate follow-up by the responsible lawyer.

4. Shorten payment terms

Invoicing your customers regularly allows you to trigger the payment deadline sooner and collect the amounts to be collected more quickly. Depending on its activity and the type of its clientele, a law firm will grant variable payment deadlines. You must therefore be able to identify them in order to follow them precisely and trigger reminders in a timely manner (see below).

The payment deadline will have a strong impact on cash flow. Indeed, between the moment when the service is “produced” by the lawyer and the moment when the latter is paid, the Working Capital Requirement (WCR) must be financed. That is to say the expenses linked to the proper functioning of the firm to produce the service promised to clients. The later the firm invoices, the later it will collect, the longer the period to be financed (and therefore the WCR) will be and therefore more expensive. Another perverse effect, poorly understood, the BFR can lead the lawyer to think that he must charge more, risking further straining the relationship with his clients on this subject and slowing down his commercial development.

The cash flow level therefore depends on the good timing between invoicing and collections. If these are slow to arrive, you must then move on to the next step: recovery.

5. Follow up with your customers as soon as they notice a delay

As we have said, it is essential to invoice your customers on time. It is just as essential to follow up with bad payers. It is therefore strongly recommended for a law firm to set up a recovery process that offers several levels of recovery. Indeed, not all customers necessarily have bad intentions when the time comes to pay the bill but they delay doing so.

They may have simply forgotten. There may be a technical or administrative problem or even an exceptional unforeseen event. It is then not necessary to be too aggressive in its recovery. On the contrary, being patient and understanding will strengthen customer relationships.

Conversely, chronic bad payers must be identified to anticipate and adapt the invoicing process on the one hand and collection on the other. Here too, there are turnkey solutions such as Jarvis Legal which displays an aged balance per customer. It is constantly updated and can be exported to have an up-to-date listing of the customers and invoices concerned to initiate follow-ups with the customers concerned.

It is essential that the lawyer does his part and takes charge of the subject because he is too often embarrassed to call or follow up with his clients on this sensitive subject. It should be noted that time is against him: the longer the situation drags on, the more complicated it will be to resolve.

6. Act quickly and efficiently in the event of cash flow difficulties

Thanks to the cash flow monitoring table presented at the beginning of this article, you have the ability to anticipate. As soon as you identify a future difficulty that could lead to a more complicated period that is likely to last, quickly make the necessary decisions.

To do this, from the list of expenses indicated in the cash flow statement, identify those which present an uncertain return on investment (ROI), which is too distant or those expenses which have no value in the eyes of your customers. This concerns your offices, operating costs, equipment as well as service providers or transport costs for example.

You will be able to re-incur these expenses when you have exited the phase of turbulence and the cash flow has returned to a satisfactory level.

7. Have a reserve to deal with unforeseen circumstances

The periods we have been going through for several years have demonstrated that no scenario, however highly improbable, should be ignored. Your cash flow must allow you to deal with unforeseen events and give you time to adapt.

Ideally, you should have 4 to 6 months of cash available. How to define this threshold? It's simple: it represents the amount of expenses to be assumed over this period, assuming that there will be no more turnover over this same period. So if you have monthly expenses of €5, the target cash flow level should be between €000 and €20 thousand to benefit from a sufficient reserve.

You can also ask your bank for an overdraft facility or overdraft authorization. Calculated in proportion to your turnover, it generally represents 15 days of turnover. This is the period during which you will be authorized to be overdrawn within the limit of the authorized amount. Be careful, however: this solution is quite expensive and you will have to become positive again within the 15-day period allowed.

Once the cash reserve has been established, it is recommended to optimize the surplus so as not to let money sit unnecessarily. Whether personally or for your employees, there are very interesting and particularly attractive solutions, such as the offers offered by Swisslife or AXA (additional income to supplement a future retirement, participation plan, contributions, etc.).

Cash flow is a highly strategic subject, both for businesses and law firms. Like the battery in your laptop or smartphone, you always need to have a reserve to face the unexpected. As we have seen here, many levers are at your disposal to take the initiative on this subject and not suffer. Now it's your turn.

To go further on this subject, download the cash flow monitoring table that we provide free of charge and do not hesitate to make an appointment with a business manager to find out more about Jarvis Legal.

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“Dupond-Moretti” project: one reform too many?

by With No Comment Lawyer Entrepreneur

Restore French confidence in Justice. Ambition – in the form of invocation – was laudable. However, since its presentation on Wednesday in the Council of Ministers, the bill presented by Minister of Justice Éric Dupond-Moretti has received a lot of criticism from the legal world and in particular, logically, from criminal lawyers. An update on a reform that is struggling to convince.

A catch-all project that is too ambitious or not ambitious enough?

First sticking point. The least we can say is that the text is eclectic. While it has “only” 36 articles, it addresses many aspects of the procedure head-on, from filmed hearings – a flagship measure, at least not in the media of the project – to the reform of the application of sentences, among other things. by searches of law firms, limitation of the duration of preliminary investigations or even the work of detainees. On this last point, it should be noted that the consensus is however almost acquired. This is noteworthy because it is one of the rare articles in the project to be the subject of such an agreement. The recognition of “ social rights to detained persons as long as they are useful for their reintegration » is undoubtedly no stranger to this.

To summarize, we could organize the bill around four main themes:

> Provisions relating to legal professionals. Quickly here. A Code of Ethics, prepared by the national body of each of the professions concerned, is provided for: lawyers at the Council of State and the Court of Cassation, commissioners of justice, clerks of commercial courts and notaries. Furthermore, in the event of a complaint, conciliation must be considered as a first step. Finally, the famous article 700 of the Code of Civil Procedure, relating to costs incurred and not included in the costs, could be modified and article 66-5 of law no. 71-1130 of December 31, 1971 amended to allow “ the production in court of any element necessary to justify the sums requested for costs incurred and not included in the costs ". Not much commotion here.

> Broadcasting (and recording) of hearings. This is the eternal law of 1881 on freedom of the press which is supplemented and given a new article 38 quater in order to allow the recording of a hearing “ for reasons of public interest with a view to its dissemination ". This recording is strictly regulated and defined. Second sticking point. Wanting " bring justice into the living room of individuals ", some consider the measure as a "marketing" measure or even " a gadget that is not up to the challenge » (Christian Saint-Palais, president of the Association of Criminal Lawyers, in an interview given to Obs. on April 14, 2021).

> The end of automatic sentence reduction and the prison contract. Exit therefore the reduction of automatic sentences, “ illegible and incomprehensible » in the words of the Ministry of Justice. From now on, it is the sentence enforcement judge who will deal with it. It will thus be able to grant sentence reductions of up to six months per year of detention for convicts who have “ given sufficient proof of good conduct or who have demonstrated serious reintegration efforts ". A measure considered “populist”.
Note here that pre-trial detention has also been remodeled in order to limit it only to cases where it is essential.

Haro on the reform of the foundations

Today, an assize trial takes between thirteen months and three years of hearings. The inevitable consequence: congestion which continues to increase. The objective is clearly defined: this involves reducing flows by half. “ I will ensure that preliminary investigations remain preliminary and do not last forever », announced the Minister of Justice. Third part of the reform, and third sticking point, which undoubtedly constitutes the cornerstone of the discontent relating to the project.

> The course of the (criminal) procedure. Concerned here are (1) limitation of the duration of preliminary investigations (two years + one year), “an epiphenomenon” according to Ludovic Friat, general secretary of the Union of Magistrates. Indeed, according to figures from the Chancellery, in 2020, only 3% of preliminary investigations had been open for more than three years; (2) defense secrecy, enshrined in a new preliminary article of the Code of Criminal Procedure: “ Respect for professional defense secrecy is guaranteed during the procedure under the conditions provided for by this code. ", precision being to make that " when the search is justified by the accusation of the lawyer, it can only be authorized if there are plausible reasons against the latter to suspect him of having committed or attempted to commit the offense which constitutes the subject of the procedure ". Another interesting point here, the strict supervision to say the least. connection data linked to the use of an electronic communications network or service » a lawyer; (3) and generalization of departmental criminal courts. Until now in the experimental phase in 24 departments, they should be extended to the entire territory on January 1, 2022. The results of the experiment would indeed be positive, particularly in terms of deadlines, which would be largely reduced, thus making it possible to significantly ease the congestion in the criminal courts but also to reduce the rates of recourse to correctionalization. A boon ? Not really. Because the least we can say is that this part of the bill makes people cringe. Fourth sticking point. By generalizing departmental criminal courts for crimes punishable by up to twenty years in prison, the Minister of Justice has driven a nail into his own foot. And for good reason. The former criminal lawyer himself openly contested the process, calling it “death of the assize court”! This is because many criminal lawyers are intrinsically attached to the criminal courts, a revolutionary vestige of “direct democracy” and an ideal of popular justice. In fact, in the departmental criminal courts, there are no longer jurors, but magistrates. And this is precisely where the problem lies.

The project will be examined in May in an accelerated procedure before Parliament. The magistrates' unions are already up in arms, denouncing, in addition to a lack of consultation, a total disconnection from reality and resources. Like Christian Saint-Palais, president of the Association of Criminal Lawyers, for whom the project “ comes to sprinkle scoops on provisions where sometimes no one expected it ". Worse, he denounces “ provisions […] poorly drafted and [which] leave worrying ambiguities on serious subjects such as searches of law firms ».

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Lawyers, rethink your fees! (3rd part)

by With No Comment Lawyer Entrepreneur

A lawyer is there to advise and defend his clients, but he does not generally do this free of charge (except in the case of pro bono and legal aid to a certain extent).

Fees remain an important topic for him, and we will look into the issue of unpaid fees.

The importance of unpaid debts for lawyers

In the first two parts of our file on fees, we insisted on:

    • • the need to establish a thoughtful price scale based on elements important to you (time spent, costs incurred, degree of specialization, etc.);
    • • the interest in effective communication of these fees to a public who needs to understand before committing.

However, just because a client understands your fees does not mean they are not at risk of defaulting.

For lawyers, unpaid debts, although they do not represent the majority of their files, remain significant.

At the question :

“Out of 10 clients, how many do you have to follow up on to pay your fees?”

The response from the lawyers (sample of 100 people) is eloquent:

A little more than 4 out of 10 customers need to be contacted* at least once before they proceed to pay the fees owed to the lawyer.

What is the procedure to follow when reminders follow one another and do not result in a rapid settlement?

And above all, how to make it so that from 4 relaunched clients, you go to 2 or even just one?

* Survey results: 4.28 clients out of 10 must be contacted for payment of fees (sample of 100 lawyers)

How to contact the President of the President regarding the setting of fees?

When a client does not pay the fees he owes you, you can contact the President of the Bar Association. Two means are at your disposal:

    • • by post by registered letter with acknowledgment of receipt;
    • • delivered by hand against receipt (at the service reception).

This referral to the President of the Bar must include several elements to be admissible: the client's contact details, a kbis extract less than 3 months old if it is a legal entity, the diligence sheet, a copy of the invoices addressed to the client as well as that a formal notice

Your file will be processed within 4 months, renewable once, upon receipt of the referral by the fee setting department.

This is the last solution, to be put in place only if the dialogue with your client has broken down or they have explicitly made you understand that they will not pay your fees.

Beforehand, you can implement a simple solution that can help you reduce your unpaid debts.

The ideal solution?

Which tool allows you to solve these three problems simply and simultaneously in order to reduce your share of unpaid fees?

As a lawyer, you do not necessarily want to invest in a bank payment terminal which may incur installation and maintenance costs.

Furthermore, your client may also not be able to come to your office to pay your fees and prefers to do it directly from their sofa.

You can then proceed to online payment of your fees. Simple and effective, this method has three main advantages:

    • • offer litigants a modern way to pay your fees : as we saw previously, fewer and fewer French people use checks, while 61% of them favor the credit card.

By switching to online payment of your fees, you will respond to increasingly strong demand from your clients.

    • • be able to follow up with your customers in a simple way : you just need to have the amount of your fees as well as your client's email address.

By using the online payment platform made available to you on my-lawyer.fr, you will be able to send an email to your client in just a few clicks so that they can pay your fees directly by credit card.

    • • offer your clients the splitting of your fees : you decide the amount to be paid each month (for example), in consultation with your client if necessary in order to reduce your share of unpaid fees as much as possible. Indeed, a litigant who has difficulty paying your fees will try to do so within his means if you show flexibility.

Although this approach does not guarantee immediate payment of your fees, it has the merit of facilitating your reminders as well as your client's procedures.

Learn more about online payment

And you, how do you manage your fees and their payment?
Are you flexible with your customers?

Don't hesitate to give us your opinion in the comments.

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Lawyers, rethink your fees! (2rd part)

by With No Comment Lawyer Entrepreneur

In the first part of our file, we addressed the question of the accessibility of your expertise for the French.

Although it is about protecting their interests, it is sometimes difficult to take the step of your office, very often due to the cost of a consultation.

If communication is essential, it is just as important to rethink your price list (without necessarily revising your prices, we will come back to this) in order to reach a wider population.

How to rethink your fees in order to develop your clientele effectively?

Several strategies can be considered.
Here are some steps you can take to help you.

First, don't be tempted by the strategy of "lowest possible fees to attract more clients”.

This strategy, while surely profitable in the short term, is not really one in the long term.

Establishing a price list must be based on several things:

    • Your expertise in a field of intervention: a specialized lawyer will have a higher hourly rate than a young lawyer without specialization for example.
    • La population that you wish to aim for: to correlate with the field of intervention in which you operate: a dispute in international law necessarily implies a higher hourly rate than a dispute in family law.
    • Le time that you will spend on each affair and which will define
      the actual cost of the service.
    • Your charges at the end of the month: like any liberal profession, your charges generally represent 50% of what you receive. Your clients may not know it, but they directly influence the setting of your hourly rate.

So many things that need to be factored into your pricing strategy and that you shouldn't overlook. 

What role do you give to each of these points in establishing your price list?

A senior lawyer can – and must – grant more points to his expertise, for example, and will take less into account his social charges because they will be quickly amortized by his advanced expertise.

A young lawyer, on the contrary, will always keep in mind the charges he will have to pay at the end of the month because they largely determine his remuneration.

Effective communication about your fees: the key to success

Once this question is resolved, you can concentrate on the most important part of the fees: knowing how to communicate them to your potential clients. 

Because we must not deceive ourselves: a client who accepts your fees without complaint is a client who understands how they work.

Taking your hourly rate as a basis and dissecting it to come up with a figure that inspires more confidence when your work didn't take you an hour is a good thing, but please communicate about this possibility ?

Therein lies the problem: what is normal for you is not necessarily normal for the litigant.

If he thinks he will in all cases charged €200 for an appointment with a lawyer which lasts 20 minutes and where he will only be entitled to rapid advice on a procedure, he will not be reassured.

Who would be in his place?

To make things more concrete, let's take the case of Master Anthony Joheir, lawyer at the Marseille bar in criminal law and personal injury law, who agreed to answer our questions:

“I always offer a free initial consultation.

This consultation is decisive because it allows an initial legal analysis of the file and to determine the financial conditions of my intervention. After the consultation, I draw up a very detailed fee agreement which I send to the client. If the latter wishes my intervention, we set a second meeting to sign the agreement and the payment of the agreed fees.

The client thus has a period of reflection between these two meetings before committing to me.”

A fee agreement very detailed, this is what your potential client expects at the end of a first meeting before choosing to commit to you.

This is the whole challenge of communication work around your fees: make it clear that the hourly rate is not fixed but also that the famous “package” which means everything and nothing at the same time means something.

Try as much as possible to put numbers behind the terms you use to talk about your fees.

Your clients will then better understand what awaits them after a consultation and will not come to your office with a lump in their stomach.

If this is the case, it will be for reasons other than your fees.

Where should I highlight my price list?

Do you have a website?

This might be a good place to talk about it.

If your potential client is looking for information about you in particular, they are likely to visit your firm's website.

Write an article where you explain your fees and what they represent, this will help to build confidence.

If you are present on a connection site, it may also be interesting to try to talk about it as soon as a potential client contacts you.

This is very important, particularly if you are a young lawyer who does not yet have a well-established clientele.

Allowing you to make yourself known to a greater number of people, being present on a networking platform is very often beneficial for the development of your clientele.

Regarding fees and your way of highlighting them on a networking platform, you can indicate to your potential client that the hourly rate that you highlight on your profile is only indicative and that you you obviously adapt to the problem you are going to face.

Simple and effective, this precision can reassure him

Do you have your own way of promoting your fees?

If so, does it work? Do not hesitate to give us your feedback.

This is a very important subject and practices differ from one lawyer to another.

Sharing allows you to know how you position yourself in relation to your colleagues.

In the  3rd and final part of our file, we will address the issue of unpaid fees, which is essential for many of you. How to limit them and ensure that your client pays himself without reminder and referral to the Bar Association? This is the question we will try to answer.

Do not hesitate to comment on this article to tell us where you are in your thinking about your fees.

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How to communicate well with your customers?

by With No Comment Lawyer Entrepreneur

As you know, customer relations are at the heart of the performance of consulting professions.

This is all the more true for a competitive profession like that of lawyer, where transform your contacts into folders is a real problem.

Discover our advice for starting a good dialogue with your customers, from the first consultation.

Adapt to the new expectations of your customers

Litigants' expectations of lawyers are constantly evolving, whether in terms of price, speed or quality.

You must make sure to adapt accordingly.

Indeed, if your clients “make your firm”, they can also undo it in the event of dissatisfaction.

To improve the links you maintain with your customers, you must therefore rethink customer relations by putting the litigant at the heart of your strategy.

Interacting with your customers also means agreeing to exchange and establish a frank, sincere and productive dialogue with them.

The keys to good dialogue

Customer relations are worked on from the first consultation.

This is an important moment of meeting and discussion where you will be able to gauge your future client, but where they will also be able to form an opinion about you.

Here are 5 tips for establishing a good dialogue from the start:

1) Be accessible

This is no surprise, your client expects to be able to contact you whenever they want.

Availability is therefore key.

To avoid frustration on your side as well as on theirs, inform your client from the first meeting of the most convenient means of communication to reach you (telephone, email, text message, etc.) as well as your schedule.

Avoid at all costs that the litigant has the impression that you never answer his calls, he will then think that you are not working on his case.

Accessibility also requires a simplification of the law for your client, who is very often a layman in the matter.

Try to explain as best as possible the complex terms and concepts of the procedures you are going to undertake, to help them feel involved in the case.

Why not use visual aids (decision tree, infographic, power point, slideshare, etc.) to best illustrate the procedure?

2) Listen

Dialogue begins with listening.

So start by getting your client to talk and listening to them to better understand their needs, which is the key to better supporting them in their efforts and advising them.

Indeed, your strategy must be built around the needs of your client above all and only he is able to communicate them to you.

In addition to your legal skills, your clients expect from you “emotional” availability at a sometimes difficult time in their lives.

3) Customize your strategy

Every client is unique and wants to feel like that.

For this reason, you must strive to build a personalized strategy, tailor-made and perfectly adapted to the needs of your client.

Avoid a standardized solution or one disconnected from their reality, at the risk that they will sense it during your discussions and not feel supported as they expect.

4) Establish a partnership with the client

Your customer relationship must maintain a mutual understanding with your customer.

To do this, work on your contact, your responsiveness and your communication but also your transparency during discussions.

It is about creating conditions conducive to a real partnership, which can last over time regardless of the outcome of the case.

5) Create a relationship of trust

Finally, establishing a good dialogue with your customer should help you build a long-term relationship with them.

To build customer loyalty, do not neglect the relationship of trust that can be created between a litigant and his lawyer.

Be clear and transparent about your fees from the first meeting and keep them regularly informed of the progress of their file.

A customer who trusts you will be all the more likely to recommend you to their loved ones in the future.

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Lawyers, 5 tips to build lasting customer loyalty

by With No Comment Lawyer Entrepreneur

A loyal clientele who speaks positively about your expertise is what you are probably looking for as a lawyer.

It is then a question of implementing a real marketing strategy
(no, it's not a bad word) based on your customer segmentation:

Your customers do not all want the same thing and it is important to know the needs of each customer to adapt your marketing actions in the future. 

Here are 5 tips for developing a relationship of trust with them.

1. Call them back when they contact you

This may seem obvious, but we thought it was important to remember it.
A litigant who comes into contact with you wants to get on the line with you quickly.

If it's not immediate, it's important to call him back as soon as possible to show him that you care.

I often hear complaints from litigants who have not received a response from the lawyer they contacted three weeks previously.

This type of behavior harms the reputation of the judicial officer in question but also gives a bad image of the profession in general.

Customer satisfaction is important data, and reminding them can help you improve this data.

2. Pay attention to their personal life

A client who contacts you for a problem related to labor law, family law or another area affecting their personal life expects a certain “emotional” availability from you.

Hence the importance for a lawyer to develop his soft skills (pedagogy, listening, etc.).

Your customers often expect human handling of their problem, as well as rapid and efficient processing of their file.

No need to replace a psychologist at short notice: just take a few minutes to really listen to them.

The human aspect of the profession is essential and will allow you to leave a good memory with your client who will most likely come back to you if they need further legal advice.

The most important thing is communication with your customer

3. Prepare satisfaction questionnaires

How to effectively build customer loyalty?

You responded quickly to his request, you were interested in him as a person and not just as a customer, you now have to provide “after-sales service”.

This is an essential point for your customers to feel valued.

You must therefore develop a satisfaction survey via questionnaires that you will send to your clients a few days after their case has been resolved/you have given the legal advice they were waiting for. 

It is possible to use Typeform which offers simple and visually pleasing models.

This has a double function: on the one hand you will be able to know your points of improvement, what did not work with regard to their expectations, and your customers will feel that you are dedicated to your profession and that their opinion account.

This is a real performance indicator for the lawyer.

4. Integrate them into your newsletters

This is another way to follow up on your former customers. Thus, they will have on the one hand advice on the evolution of legislation in your area of ​​intervention, but also news from your firm.

This allows you to humanize the relationship you have with them so that the positive image of your expertise that they had when processing their file is lasting.

This newsletter should be monthly or even quarterly so as not to overwhelm them with information that does not interest them.

However, it is a must-have for lawyers who wish to permanently establish their “brand” in the minds of litigants.

Email is a good way to stay in touch with your customers

5. Take stock after a few months

By telephone for greater proximity, by email if you have less time: taking stock after two or three months is also important when you carry out your customer follow-up.

This allows you to know if the applicant has no other legal questions, but above all it allows you to continue to develop this positive image of your expertise.

Other processes can be put in place: if you have been following a client for a long time, you can also provide them with free legal advice from time to time so that they feel confident with you and do not go to see elsewhere.

Take an interest in proven marketing techniques and use them sparingly: this is often what your customers expect and they will repay you.

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Lawyers, 7 types of clients that you are bound to meet!

by With No Comment Lawyer Entrepreneur

You, lawyers, are human… And so are your clients.

They are all different and do not have the same expectations and personality traits.

Here are 7 client profiles you may come across or have already come across as a lawyer.

The Mr. “I know everything”

His profile

“I saw that Marie-Chantal had the same problem as me, she just had a fine to pay, I think I can get away with the same thing. You just have to file an appeal, but you already know that, right?”
The type of client you prefer, without a doubt... He knows the law better than you - despite your 8 years of study - and has already obtained all his information from forums, sometimes exploring the darkest corners of the Internet.

How to handle it

Keep your cool. If he starts asking you questions in an inquisitive manner, don't fall into his trap! Answer his questions straight away, he will follow them faster and faster until he no longer has any in reserve. Point out its contradictions diplomatically. You will then be able to savor your victory by knockout and highlight your expertise as a lawyer.

The one who thinks he's in an episode of Suits

His profile

“So, where is your sexy secretary? I’m still waiting for my whisky,” he says with a firm wink, a little smile tugging at the corner of his lips. And no, you are not at the local bar, but in your office, behind your desk.

Your client seemed surprised when he saw that you didn't have slicked back hair or a €3000 suit (or a silky blow-dry and a pair of Louboutins) but he still expects you to find the solution to his questions in less than 5 seconds, watch in hand.

How to handle it

First option, you can get into his game and recite the best punchlines from Suits or Ally McBeal if you have them in mind. We give you one from Suits as a cheat sheet: “anyone can do my job, but no one can be me”. Don't thank us, it's a gift!

Second option, tell him things as they are: real life is not like in American series but that does not prevent you from being competent in his dispute even if you do not drink alcohol all day long in your office overlooking the heights of New York.

Besides, you don't even have an office in New York when you think about it, you prefer the calm and greenery of Aurillac.

The optimist

His profile

He trusts you and doesn't hide it from you. If he chose to use a lawyer, it is to win his case, no other outcome is possible in his mind. For the Optimist, the lawyer can only win because he is there to represent him and protect his back, right?

How to handle it

Always friendly, the Optimist will not hesitate to call you regularly to find out about his file. Don't hesitate to talk to him about your chances of success if they are minimal... He will be able to prepare for possible defeat more easily.

The pessimist

His profile

If he called on you, it was only because his mother brought him by force to your office, nothing more. He thinks his case is a lost cause, and he will not hesitate to make you feel it from the first minutes by refuting everything you say.

How to handle it

The Pessimist will push you to your limits by shaking his head at each of your interventions, but don't give up. Do your job as a lawyer and answer his questions calmly. He will end up letting his guard down sooner or later in the face of your professionalism and you will be able to move forward together. If you assure him of victory, there is no doubt that you will feel a real difference in his behavior.
On the other hand, it is not certain that he will come back to you in the event of defeat.

the psychopath

His profile

He rocks from side to side in his chair – if he does it back and forth, that works too – staring into space. His approach technique changes depending on the day (full moon or not). It should also be noted that he came for legal advice, and not because he had a problem, which is rare enough to be noted.

But his questions are surprising to say the least: “If I use a knife to make small holes in my partner's skin, how much do I risk?
Not to kill it, no, just to make small holes…” but also “what if I set up a holding company with the funds of investors working in Orange to buy Free before selling it to the State? Can the competition authority worry me? Yes, we too are still looking for consistency.

How to handle it

Call a psychiatric hospital. Quickly. Or, think that if your answers are relevant, you will gain a loyal customer.

The old school

His profile

He is an old man, quite traditionalist, who generally does not understand why you send him documents by email because “you understand Master, in my time, we sent everything by mail and we had no problem if your Internet was crashing”. He also has a little paternalistic side that annoys you.

How to handle it

Keep smiling, grit your teeth and explain that you are following the procedure. These types of clients like things to be done according to the rules, so be patient and take the time to explain everything to them.

The former lawyer

His profile

He somewhat resembles the profile of the “know-it-all” gentleman except that he, for once, really knows a lot of things. He is perhaps the most annoying of all, because he comes to see you only because he cannot represent himself. You feel like you're seeing yourself 30 years from now, and you don't really like the arrogance that comes from the character... Oh my god, is that what people see when they talk to you?

How to handle it

If he comes to see you, even if it's just representation, it's because he still has a problem and needs you. Listen to his problems, let him talk, but show him that you have character and that you don't always agree with what he suggests, he will respect you even more. And then, who knows ? Maybe he, like you, will learn things from each other.

Tell us in the comments which one you prefer, or which one we forgot! Don’t hesitate to tell us about a customer experience that left a mark on you, made you smile or made you angry.

Discover Mastery by Justifit - advice for your lawyer growth
10

Little praise of pleading or Story of a fake lawyer with a dress that is too tight

by With No Comment Lawyer Entrepreneur

Little praise of pleading or Story of a fake lawyer with a dress that is too tight

The affair is funny. Last week, an article in the regional press subsequently relayed by the national press announced that a swindler pretending to be a lawyer who had had the nerve to defend an accused in any fraud case had been betrayed by his pleading and his dress. black a little too small for him! This matter may make you smile. Yet it is revealing. Indeed, in the collective imagination, a lawyer is a black dress and pleadings. A vision that is perhaps reductive but nevertheless symptomatic of an old-fashioned system which perhaps still has some good things, despite its detractors.

As Laurent Béard, deputy prosecutor, points out in the above-mentioned case, “ we saw clearly that we were not in a usual pleading.
There was neither the tone, nor the legal content, nor the requests traditionally made by a lawyer ". The fake lawyer in the too tight dress, although proud of his pleading, was logically indicted for “illegal exercise of the profession of lawyer” and “fraud”, he risks up to one year in prison and 5 euros fine. There is an art to pleading.

A case that is worth remembering in a difficult period for the lawyer and his oratorical art. The lawyer's rhetoric. A fantasy for every law student. However, it seems, “orality” is no longer fashionable. And, in fact, it is clear that the time has come to question the pleading. The cause ? The congestion of the courts without a doubt. Trials without pleading would be an obvious saving of time according to the detractors of oral proceedings (which is undoubtedly true for certain cases). But not only. They also put forward the need for a complete overhaul of the hearing system taken as a whole, a hearing which has undoubtedly moved away from its original purpose to become purely material or procedural, between filing and observations. at the call of cause, play your games, nothing is going well!

On the other hand, pleading also has its defenders. And fortunately we would be tempted to move forward. These place the exercise at the very heart of the trial. And if the assertion could seem like a truism, it nevertheless deserves to be underlined here because it is ultimately the heart of the debate: a cause will never be defended in writing as it will be orally. It can be well written, well argued and legally sound, but rhetoric will be able to convey many other things, because beyond reasoning and the intellectual it has the gift of bringing a matter to life. Because a trial, beyond the law, is above all about men. To plead is not only to put forward arguments and defend them with great force, it is not only to reread one's conclusions, to plead is to bring a trial to life, it is to make the protagonists known, it is to speak of a story. It’s bringing to life the principle of contradiction. Give a meaning. Convince. Rethink the hearing yes, but not to the detriment of the pleadings. The eloquence must continue. May it even regain all its letters of nobility and all its splendor!

The fact remains that a new situation must be taken into account today: the health crisis is undoubtedly pushing for a hyper-digitalization of professions. Including the legal profession. Does this mean that the pleading is living its last days? We bet that the future will prove us otherwise. Also, the digitalization of law cannot lead to the digitalization of hearings. Because a trial without pleading also means removing a little more humanity from a profession that is already highly digitalized. And, in this regard, the digitalization of the legal profession itself argues in favor of pleading, with a simple perspective: putting people back at the heart of the trial.

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