Profit First for Lawyers

“The firm is supposed to serve you. You are not supposed to live in service to the firm.” – RJon Robins, author of Profit First for Lawyers Is your law firm improving your life, or consuming it? This episode explores one of the most important mindset shifts a law firm owner can make: your business is supposed to support your life, not the other way around. In clips from a 2021 Profit First for Lawyers livestream and the October 2023 Live Quarterly Meeting, RJon challenges law firm owners to rethink their relationship with their firms. Using a colorful analogy comparing a law firm to both a baby and a mule, he illustrates a critical distinction that can change how law firm owners approach business ownership. Exercise: 7 Parts of Every Successful (and Unsuccessful) Law Firm RJon encourages law firm owners to evaluate the seven core parts of their business to identify where the biggest operational gaps exist. The goal of this exercise is to be aware of key parts within your business that need the most attention. This isn’t about perfection. It is an opportunity to intentionally improve the weaker areas in your business. The 7 Parts exercise is outlined in more detail in the Profit First for Lawyers book. Resource: Business Plan Workbook The Business Plan Workbook resource is designed to help law firm owners evaluate the operational strengths and weaknesses inside their law firms. Download the Business Plan Workbook to begin building a business that supports your goals, your family, and your future. Key Takeaways Your law firm should serve your goals. Skill gaps and operational blind spots create unnecessary stress. Use the exercises and resources from this episode to identify where to begin. Low-performing areas of your business are opportunities for growth, not personal failures. Successful firms are built through intentional management, systems, and leadership. This episode may challenge law firm owners who think of their business as their baby. But ultimately, it’s meant to offer insight that can fundamentally shift how they lead, manage, and grow their firm. A healthy law firm should support the people it was designed to serve, including the owner. Connect Referenced in this episode:  How To Manage a Small Law Firm Waiting Room Business Plan Workbook Subscribe to the Profit First for Lawyers podcast Watch episodes on YouTube Follow Profit First for Lawyers on social media: LinkedIn | Instagram | Facebook And most importantly, order your copy of Profit First for Lawyers today! https://youtu.be/28CUMZRhncQ

“When we implement Profit First Accounting Principles in your law firm, we begin by deciding ahead of time what percentage of every dollar of revenue we’re going to scoop off the top and protect for you and your family.” – RJon Robins, author of Profit First for Lawyers In this episode, Profit First certified controller, Veronica Zambrano joins us to break down exactly how to implement Profit First in your law firm (even if you’re in a cash crunch). Using her ‘financial gym’ approach, Veronica shares the simple practical rollout plan she uses with How To Manage A Small Law Firm (HTM) members. Building your way from a 1% allocation to your target percentage of 15% is just like progressively lifting heavier weights at the gym. Veronica shares her favorite clip of RJon in the studio taken from the Chapter 8 audiobook recording of the Profit First for Lawyers book. Then it’s time for show and tell as she walks us through how Profit First works using the HTM Profit First Allocation Calculator tool she uses for law firm owners. (screenshots below) Veronica also addresses the fear that stops many law firm owners from starting Profit First and why waiting for the “right moment” is the wrong strategy. Over the years, she has seen the system work time and time again with law firm owners who were tired of their excuses and ready to take action to become profitable. Key Takeaways: The best time to start Profit First is when you make the decision, not when your firm is “profitable enough” Starting at just 1% makes a real difference without compromising your operations The system is flexible, reevaluate every quarter and adjust based on your businesses’s actual performance Resource: Profit Leak Assessment The Profit Leak Assessment is a practical, on-demand course to help law firm owners find thousands of dollars in potential profit leaks. Karli teamed up with Evelyn Aucoin, Financial Literacy and Strategy Expert with How To Manage A Small Law Firm to create this resource for law firm owners. Click the link below to start plugging the profit leaks in your firm. Your future self will thank you for it! Connect and Engage: Mentioned: Profit First Assessment Calculator Subscribe to the Profit First for Lawyers podcast Watch episodes on YouTube Follow Profit First For Lawyers on social media: LinkedIn | Instagram | Facebook And most importantly, order your copy of Profit First for Lawyers today!

“Everywhere you go, people are going to begin celebrating their gross revenue. And I don’t want you to let that mess with your head right? Because you need to understand total owner benefits.” – RJon Robins, author of Profit First for Lawyers In this episode, Michigan appellate attorney Liisa Speaker shared her seven-year journey with Profit First. Liisa reveals how she started at just 1% profit allocation in 2018 and then paid off law firm debt, tackled law school loans, funded major home improvements, and now uses her profit account to save for her daughters’ college education. She brings a clip from the studio recording of chapter 9 of the Profit First for Lawyers book where RJon explains why understanding Total Owner Benefits, not just gross revenue, is the key to measuring your firm’s true success. Key Takeaways Comparing profit margins between firms is misleading without understanding total owner benefits on both sides Start slow and let it grow. At least 1% is enough to make a difference over time and not enough to compromise your firm’s financials Set clear goals for your Profit First account. Know where your quarterly distributions are going Having systems in place takes away the fear of managing finances and allows you to see problems before they become crises Implement weekly cash flow forecasting. This helps you to see problems 3-6 weeks beforehand which allows you to course correct before they become real issues. If any of these takeaways resonate with you, it might be time to examine where your law firm stands when it comes to total owner benefits. The good news is that understanding what your numbers are telling you is a learnable skill with the right systems in place. Resource: Profit Leak Assessment The Profit Leak Assessment is a practical, on-demand course to help law firm owners find thousands of dollars in potential profit leaks. Karli teamed up with Evelyn Aucoin, Financial Literacy and Strategy Expert with How To Manage A Small Law Firm to create this resource for law firm owners. Click the link below to start plugging the profit leaks in your firm. Your future self will thank you for it! Connect and Engage: Connect directly with Liisa Speaker at www.speakerlaw.com or www.liisaspeaker.com Full Total Owner Benefits video from Chapter 9 Subscribe to the Profit First for Lawyers podcast Watch episodes on YouTube Follow Profit First For Lawyers on social media: LinkedIn | Instagram | Facebook And most importantly, order your copy of Profit First for Lawyers today!

“So you’re meeting with your prospective new client… And they’re about to sign the engagement agreement, and you say, ‘Hold on a second. I need to share some information with you.‘ ‘Oh, what’s that?‘ ‘Well, you need to know that my law firm is not very profitable.’ “ – RJon Robins, author of Profit First for Lawyers This is part two of our series that challenges the belief that focusing on profit is selfish. If you’ve missed part one, “Why Profit Shouldn’t Be Optional”, pause here and listen to that episode first. In this episode, RJon takes his argument even further with a provocative thought experiment. What if you had to disclose your firm’s financial instability to every prospective client before they signed? He contrasts this uncomfortable scenario with the confidence and integrity that comes from running a truly profitable law firm. Key Takeaways: Understanding why financial transparency builds stronger client relationships Examining how financial struggles impact client service delivery Why Profit First allows you to authentically promise stability and complete focus to your clients How running a profitable firm creates a competitive advantage Recognizing that financial stability isn’t only about your paycheck, it’s also about the integrity of your client promises This episode demonstrates how Profit First enables law firms to focus on client needs with genuine confidence and integrity rather than their own business and personal financial survival. Resource: Profit Leak Assessment The Profit Leak Assessment is a practical, on-demand course to help law firm owners find thousands of dollars in potential profit leaks. Karli teamed up with Evelyn Aucoin, Financial Literacy and Strategy Expert with How To Manage A Small Law Firm to create this resource for law firm owners. Click the link below to start plugging the profit leaks in your firm. Your future self will thank you for it! Connect and Engage Mentioned: Part 1 of this series: Why Profit Shouldn’t Be Optional Subscribe to the Profit First for Lawyers podcast Watch episodes on YouTube Follow Profit First For Lawyers on social media: LinkedIn | Instagram | Facebook And most importantly, order your copy of Profit First for Lawyers today!

“A much healthier approach. A much more rational approach is to begin by deciding what you want out of your business first… After all the business is supposed to be there to give you a better life too, isn’t it?” – RJon Robins, author of Profit First for Lawyers In this episode we hear about a common challenge among law firm owners: feast or famine finances. If this feels all too familiar then this episode is exactly what you need to hear because it is never too late to begin your Profit First journey. But don’t just take our word for it. Law firm owner, Sarah Phillips from Phillips Law in New Orleans, Louisiana joins us to talk about the transformational journey she and fellow law firm owner Bradley Phillips have been on since beginning to take their profits first. This husband-and-wife legal team’s transformation story proves that taking profits isn’t about greed, it’s about stability and treating your business like the asset it should be. RJon in the Studio Sarah brought her favorite clip from the Profit First for Lawyers book pages 166-167 where RJon discusses “The Primacy Effect” and how it impacts business profitability. He explains how profit must be baked into every transaction instead of being treated as an afterthought, which is the traditional approach to cash management. This mindset shift forces business owners to be creative and make tough decisions at work rather than at home. Key Takeaways Profit cannot be treated as an event, it must be treated as a habit It is not greed to pay yourself consistently, you deserve compensation just like any employee You don’t have to implement every aspect of Profit First all at once When your business cannot pay you, it is a red flag that something is broken and needs fixing The business model should work for you, not the other way around Get Started Now So how does someone actually get started with these concepts? Sarah’s advice for hesitant law firm owners is simple: start with baby steps. Begin by paying yourself first consistently and see how it changes your business mindset. Financial stability eases the mental load many business owners experience and allows more strategic and less emotional decision making when challenges aka “problem-tunities” arise. Sarah says they are now able to quickly identify what’s not working and come up with logical solutions since they started taking their profits first. Resource: Profit Leak Assessment The Profit Leak Assessment is a practical, on-demand course to help law firm owners find thousands of dollars in potential profit leaks. Karli teamed up with Evelyn Aucoin, Financial Literacy and Strategy Expert with How To Manage A Small Law Firm to create this resource for law firm owners. Click the link below to start plugging the profit leaks in your firm. Your future self will thank you for it! Connect and Engage Connect with Sarah Phillips directly by visiting: www.nolacriminaldefense.com Mentioned in this episode: Mike Michalowicz episode – Profit First – More Than Just A Book Subscribe to the Profit First for Lawyers podcast Watch episodes on YouTube Follow Profit First For Lawyers on social media: LinkedIn | Instagram | Facebook And most importantly, order your copy of Profit First for Lawyers today!

“The mindset of so many lawyers in the legal industry is that if I’m having law firm management problems, it must be that I’m just not a good enough lawyer, which of course is nonsense.” – RJon Robins, author of Profit First for Lawyers In this episode we are joined by Charlee Spilker, Profit First certified controller at How To Manage A Small Law Firm. She shares wisdom pulled from over 30 years in finance and accounting as well as her horse training experience and applies it to law firm profitability. RJon’s powerful clip reveals why many lawyers struggle with business management, while Charlee’s horse story provides a good example of how unconventional methods offer a solution for law firm owners (and horses) who are stuck. If this has been your struggle, then this episode is for you. Charlee’s approach to starting your law firm’s Profit First journey is simple: Make the decision to sign up to begin using Profit First accounting principles. Open the bank accounts you’ll need to implement Profit First. Start allocating funds to those accounts. The key is being willing to change what’s not working, even when conventional thinking says you should stick with what you know. As Charlee puts it, “What you did 10 years ago doesn’t work today, you’ve got to be ready to pivot.” Key Takeaways: The need to be “right” keeps lawyers stuck in unprofitable patterns Law school teaches law, not business management Move your feet before moving your mind – take action even when you’re not convinced You can’t cut your way to profit, you have to invest your way to profit Profit isn’t just about finances, it includes personal and professional satisfaction Resource: Profit Leak Assessment The Profit Leak Assessment is a practical, on-demand course to help law firm owners find thousands of dollars in potential profit leaks. Karli teamed up with Evelyn Aucoin, Financial Literacy and Strategy Expert with How To Manage A Small Law Firm to create this resource for law firm owners. Click the link below to start plugging the profit leaks in your firm. Your future self will thank you for it! Connect and Engage Subscribe to the Profit First for Lawyers podcast Link to Xavier Martine’s episode Watch episodes on YouTube Follow Profit First For Lawyers on social media: LinkedIn | Instagram | Facebook And most importantly, order your copy of Profit First for Lawyers today!