“When you’ve taken your profit off the top, like we talk about in Profit First for Lawyers, and you’ve only got what you’ve only got to cover expenses, it forces you to be more honest with yourself. It forces you to grow up as a business owner and make better decisions.” – RJon Robins, author of Profit First for Lawyers

What if the way you’ve been taught to think about profit is actually keeping your law firm stuck? This eye-opening episode will answer that question clearly. In part five of our seven-part financial literacy series, RJon breaks down the fundamental difference between traditional accounting and the Profit First approach. This is a small but powerful shift that forces your business to grow up.

In the 2019 workshop, RJon walks How To Manage a Small Law Firm members through the real numbers showing what happens when expenses outgrow income. The traditional approach leaves room to tolerate unmeasured marketing, underperforming staff, and bad processes. Implementing Profit First removes that cushion and forces honest conversations and decisive action about what’s really working in your business.

As RJon writes in Chapter 8: “When you put profits first, you force creativity, ingenuity, and innovation into your business.” This means, instead of accepting low standards because there’s money to cover them, you’re forced to find smarter ways to get the same results more efficiently.

Take Action

Look at your own law firm and ask yourself, “If I protected my profit first, what would I have to stop tolerating in my business that is currently taking my profit?”

And that’s it. Just sit with that question. The reality is you already know the answer. So what actions will you take now that you’ve taken the time to recognize that honest truth?

Next Time: Join us for Part 6 where RJon walks through the practical application of stepping away from some of the various roles you currently hold in your law firm without tanking your income.

• Financial Literacy Series:
  • Part 1: You’re Not Bad With Numbers
  • Part 2: Understanding the Stages of a Law Firm’s Growth
  • Part 3: Calculating Your Total Owner Benefits
  • Part 4: What Is Your Normalized Salary?
• Chapter 8: Why Generally Accepted Accounting Principles (GAAP) Are Not Meant for You (pages 70-71 in the Profit First for Lawyers book)
• Email podcast@profitfirstforlawyers.com with subject: “Debt Ladder” for a future episode

• Subscribe to the Profit First for Lawyers podcast
• Watch episodes on YouTube
• And most importantly, order your copy of Profit First for Lawyers today!