“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!
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