Profit First for Lawyers

“There are three ways you’re going to get compensated from your business. One is W-2 Salary. Two is K-1 distributions. Three is other benefits.” – RJon Robins, author of Profit First for Lawyers How profitable is your law firm? The answer might be more complicated than what shows up on your P&L statement. In this third part of our seven-part financial literacy series, we revisit a topic from season one: Total Owner Benefits. A topic of such importance that it has an entire chapter devoted to it. Listen in as RJon takes a law firm owner through an exercise to calculate the true value they are receiving from their firm. Beyond the Bottom Line RJon poses a powerful question: Would you rather own Firm A (making $1M but working 70-hour weeks doing work you hate with no vacations) or Firm B (making $500K working 50 hours doing meaningful work with real time off?) Your banker might say Firm A is more profitable, but which would contribute to your family’s happiness more? The Real Math In the 2019 workshop, RJon shows how a business that appears to have a 20% profit margin actually delivers 38% in Total Owner Benefits when you account for all three components (W-2 Salary + K-1 distributions + Other benefits). The difference is dramatic and changes everything about how you evaluate your firm’s true profitability. Understanding Total Owner Benefits reveals the value your business is actually providing you with. Action Steps Follow along with your numbers during the exercise to discover your Total Owner Benefits Then ask yourself: What is my law firm actually giving back to my life? If you don’t like the answer, pick one small thing to change Next Time: Join us for Part 4 where RJon walks law firm owners through normalized salary calculations. This is an eye-opening episode you won’t want to miss. So be sure to subscribe to the Profit First for Lawyers podcast. Resources Mentioned Financial Literacy Series: Part 1 – You’re Not Bad with Numbers Part 2: Understanding the Stages of a Law Firm’s Growth Chapter 9: Total Owner Benefits (pages 73-87 in the Profit First for Lawyers book) Season 1: Total Owner Benefits episode Connect Subscribe to the Profit First for Lawyers podcast Watch episodes on YouTube And most importantly, order your copy of Profit First for Lawyers today!

“Accounts receivables are so much worse for a law firm than most lawyers understand or appreciate. So much worse.” – RJon Robins, author of Profit First for Lawyers In this episode, How To Manage a Small Law Firm CFO and CEO advisor, Etienne Hardre expands upon RJon’s clip from Chapter 14 about the devastating mathematics behind accounts receivable. The Devastating Mathematics Here is what really happens when Client A doesn’t pay their bill. You’ve already spent the money on marketing, sales, production, and overhead to serve them. When their bill goes unpaid, they’re not just skipping the 33% profit, they’re stiffing you on the entire bill. So what happens next? Now you need to cover marketing, sales, production, and overhead for Clients B, C, and D before you begin to see your first profit from working with all four clients. Here’s the breakdown for a theoretical $10,000 case/matter with a 33% profit: Client A did not pay their bill Clients B did pay their bill and their 33% profit goes to cover the costs you already spent on Client A Client C also paid their bill and their 33% profit covers the overhead from Client A Client D’s profit finally covers the profit you should have made from Client A. After four clients you’ve finally recovered what one client should have originally provided. This illustration makes is easy to see how Accounts Receivable is the silent profit killer that is crushing law firms nationwide. Is it any wonder that RJon put A/R in the Profit First for Lawyers book twice? Why Law Firms Struggle with A/R Most law firm owners hate looking at their aging A/R reports. Some have six-figures of A/R outstanding and are challenged to ask to be paid for the completed work. The mindset issue around asking for money compounds the problem. The fact is that A/R and Profit First work against each other. The more money trapped in A/R, the harder it becomes to take profits first. To combat the mindset issues, start implementing Profit First even with 1%. The urgency will force you to address your law firm’s accounts receivables. Take Action on Your A/R So, what’s a law firm owner with A/R to do? Stop the bleeding. Start with preventing new A/R from forming. Screen clients for ability to pay during marketing. Use retainer policies and implement “red rubber band” systems that stop work when payments are due. Adopt more frequent billing to top up retainers. Tackle existing A/R by starting with recent accounts receivables, be flexible with payment plans and discounts. Remember: Get creative because any A/R you collect is 100% profit since you’ve already paid all the associated costs. Your Action Steps: Implement a red rubber band policy to prevent new A/R Pull your A/R aging report and face reality Start collecting immediately, be creative when necessary Mentioned: Chapter 14 – Profit First for Lawyers book Podcast episode – A/R: The Profit-Eating Machine with Ed Gegan Connect Connect with Etienne Hardre at How To Manage a Small Law Firm by emailing help@howtomanage.com 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!

“If we can develop good habits for you when your business is still in the first stage of growth, you’re going to bring those good habits with you into business maturity.” – RJon Robins, author of Profit First for Lawyers A growing business requires a growing owner. During a Q&A session in part two of our seven-part series, RJon explains why financial literacy does not carry the same weight at every stage of growth. In the earliest stages, the owner’s job is to “hustle, market, and sell.” New benchmarks require the owner to develop new skills, learn to hire, delegate, and build team productivity. Then as the business becomes more complex, financial literacy, systems, metrics, and accountability become increasingly important. The lesson is not simply that law firms grow in stages. It is that the owner must gain new skills and maturity to grow with the firm. Financial Literacy in Context Financial literacy is not equally important at every stage of growth. A growing business requires the owner to keep learning, adapting, and leading differently. Action Steps Identify which stage of growth best describes your firm today. Determine the most important priorities for that stage. Review the financial reports currently available. Commit to building one financial habit that will strengthen your understanding of the business over time. The goal is not to master every financial concept at once. The goal is to begin building the habits that will support your next stage of growth. Mentioned Part One: You’re Not Bad With Numbers Chapters 12-15 of Profit First for Lawyers The Seven Stages of Law Firm Growth Connect Subscribe to the Profit First for Lawyers podcast Watch episodes on YouTube And most importantly, order your copy of Profit First for Lawyers today!

“We are going to break away from the dictionary’s limited definition of profit and profitable, which only account for financial profits.” – RJon Robins, author of Profit First for Lawyers For many law firm owners, profitability is measured by one thing: money. But what if profit gives you something even more valuable? Time. In this episode, Michigan estate planning attorney Rose Coonen shares how implementing Profit First accounting principles transformed not only her firm’s finances, but also how she spends her time, serves her clients, and shows up for her family. Redefining Profit RJon challenges the traditional definition of profit and introduces a broader perspective: profit can be personal and professional as well as financial. For Rose, that shift in understanding changed everything. Since implementing Profit First three years ago, she has built a strong financial foundation, gained the freedom to stop working with toxic clients, become more present with the families she serves, and grow a law firm that supports the life she wants to live. Today, her law firm is a family affair with her husband and daughter working alongside her as the business continues to grow and serve her community. What started as a desire for greater financial stability ultimately became a way to regain control of her time. Key Takeaways Profit is about more than money Financial profit creates personal and professional opportunities Regaining your time starts with building a stronger financial foundation A profitable law firm gives you the choice of working with your ideal clients Growth allows for creative ideas to serve more clients, support more team members, and make a greater impact in your community. Sometimes the most meaningful result isn’t found on a financial statement. It is the ability to spend more time with family, build a business that aligns with your values, and make a greater impact in your community. Because the most valuable form of profit may be time itself Mentioned Plan Like You Won’t Be Here Tomorrow Connect and Engage Connect directly with Rose Coonen: https://coonen-law.com 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!

“I want to expose you to a really cool world of financial literacy to empower you to be better, more confident business owners.” – RJon Robins, author of Profit First for Lawyers If financial reports, spreadsheets, or business metrics have ever made you want to tune out, this episode is for you. In part one of a seven-part series on financial controls, RJon explains why financial literacy is not about becoming an accountant or learning advanced math. It’s about learning to recognize the story your numbers are already telling you about your business. Featuring clips of RJon from a 2019 financial literacy workshop, this episode introduces foundational concepts that would later appear in Profit First for Lawyers. As the first installment in a seven-part series, it explores how learning the language of business and finance can change the way law firm owners see and understand their firms. With greater financial literacy comes the ability to recognize patterns, opportunities, and warning signs that may have previously gone unnoticed. The goal is not perfection. The goal is confidence, awareness, and the ability to make better business decisions over time. Key Takeaways Financial literacy is learnable. You do not need to become an accountant to become a stronger business owner. Learning financial concepts changes how you see your business. Awareness creates more confident decision-making. Mentioned: This episode pairs especially well with Chapter 10: Is It Overhead or Overhead? from Profit First for Lawyers, where RJon explains how financial literacy changes the way law firm owners understand and manage their business. RJon Robins – From The Vault podcast: This podcast is for law firm owners and delivers expanded lessons in addition to the core teachings which are found in Profit First for Lawyers. Frequency illusion aka Baader-Meinhof phenomenon – Wikipedia definition Connect 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!

“Your law firm is a business. Your business is supposed to work for you.” – RJon Robins, author of Profit First for Lawyers For many law firm owners, profitability seems uncertain. Maybe there will be money left over at the end of the year. Maybe there won’t be. For years, that was exactly how Matt Loker approached business ownership. That changed when he implemented Profit First accounting principles. By building stronger systems, he replaced guessing with structure, clarity, and intentional growth. In this episode, Matt shares how shifting from reactive decision-making to measurable systems transformed both his law firm and his family life. What Business Owners and Farmers Have In Common Drawing inspiration from one of RJon’s most memorable analogies, Matt explains why so many law firm owners unintentionally build businesses that depend entirely on them. But just like a farmer cannot successfully operate an entire farm alone, law firm owners cannot sustainably grow a business without systems, structure, and a strong team. As Matt stopped guessing about profits, his law firm evolved from a solo practice into a business that is growing nationally. His law firm is now capable of operating successfully even when he is away for extended periods of time. This has given him the ability to create experiences and opportunities for his family that once felt out of reach. From Guessing to Predictability By creating structure around profitability, distributions, systems, and operational planning, Matt was able to: Make more objective business decisions Grow his team intentionally Increase owner benefit Create more stability inside the business The result was not just a larger seven-figure firm, but a more predictable and sustainable one. Mentioned: Systems & Processes Template How To Mange a Small Law Firm Connect Connect directly with Matt Loker: https://www.loker.law 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 biggest challenge we have in helping someone go from zero to seven figures… is that they don’t believe it’s possible.” – RJon Robins, author of Profit First for Lawyers Why do brilliant lawyers struggle to build profitable businesses? That’s a question you’ll find the answer to in this episode where RJon explains the fundamental mindset shift that separates struggling attorneys from successful business owners. He does this by illustrating just how simple a business is to run with the 7 Main Parts of Every Successful Law Firm: Marketing Sales Production People Physical Plant Financial Controls (Money & Metrics) You (Owner’s Goals) In season one, we did an entire series on the 7 Main Parts. See links in the Resources Mentioned section to access those episodes directly. Additional context of this framework can be read in Chapter 5 of the Profit First for Lawyers book. The Identity Challenge RJon begins with a radical challenge: stop calling yourself a lawyer. Start saying, “I’m a business owner who sells legal services.” This isn’t just semantics. It’s the foundation for everything that follows. Lawyers who identify as business owners think differently, plan differently, and execute differently. The challenge? Self-sabotage. Overcomplicating the process. Not believing YOU can do it. The Business Owner Mindset Everyone in your ecosystem wants profit: your family, your clients, and you. Business owners understand this. They think in terms of return on investment. They have a business plan they actively use that they measure their business against. When metrics scream: ‘Hire someone! Expand! Invest!’ they listen and take action. Your Action Steps: Start identifying as a business owner who sells legal services Write a simple business plan using the seven-part framework Stop overcomplicating what should be straightforward systems Believe rapid growth is possible for you If your business plan reads like a legal treatise, you’re thinking like a lawyer, not a business owner. Great business plans are simple, readable, and actionable. Resources mentioned: Chapter 5: The Seven Main Parts of Every Successful Law Firm Season 1 Series on the Seven Main Parts: 1. Marketing 2. Sales 3. Production 4. People 5. Physical Plant 6. Money & Metrics (Financial Controls) 7. YOU Connect 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!

“I want you to feel empowered by the knowledge that GAAP is not the only way to manage a small law firm to profitability.” – RJon Robins, author of Profit First for Lawyers In this episode, Pietro Canestrelli shares how following Profit First accounting principles helped transform not just his law firm’s profitability, but the way he thinks about ownership, decision-making, hiring, and growth. Drawing from his experience as both a longtime tax attorney and as the owner of a rapidly growing law firm, Pietro explains why GAAP accounting was never designed to help small law firms maximize profitability and why business owners must become comfortable looking at their numbers regularly. Regular listeners know that RJon frequently speaks about GAAP and that there is an entire chapter titled, “Why Generally Accepted Accounting Principles (GAAP) Are Not Meant For You” (Chapter 8) in Profit First for Lawyers. Well worth a second or third read for those who need a refresher. Courage and Math Pietro introduces a phrase that he says law firm owners need in order to build a profitable business: courage and math. The courage to face reality. The math to make objective decisions. The Importance of Looking at Your Numbers One of the most practical lessons in this episode is the importance of reviewing business metrics consistently, especially when the numbers are uncomfortable. By regularly reviewing data like leads, production, consultations, and conversion rates, he was able to identify operational issues quickly and make adjustments before larger problems developed. Because avoiding financial reality does not prevent the consequences. Connect Connect directly with Pietro Canestrelli: https://ietaxattorney.com/pietro-canestrelli Learn more about America’s Tax Defender book by Pietro Cannestrelli 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 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

“Implementing Profit First in your law firm is a meaningful first step that you can take that will help you correct this costly and stressful misalignment between yourself and the clients of your law firm.” – RJon Robins, author of Profit First for Lawyers For many law firm owners, profit feels uncomfortable. Maybe even selfish. But what if profit isn’t the problem? In this episode, immigration attorney Jennifer Walker Gates shares how implementing Profit First transformed not just her law firm, but her entire relationship with money, ownership, and profitability. Coming from a nonprofit background and serving primarily working-class immigrant families, Jennifer admits she once viewed profit as a “dirty word.” Charging for legal services felt emotionally complicated, and looking closely at financial numbers often created anxiety instead of clarity. What Is Profit Really? Everything began to shift after reading Profit First by Mike Michalowicz. She now had a new way of thinking about profit, and that thinking was elevated even further after reading Profit First for Lawyers by RJon Robins. The law firm-specific focus helped her rethink what profitability could look like in the context of running a law firm. Not as greed. Not as taking from clients, but as a mutually beneficial exchange. This transformative understanding changed everything. By implementing Profit First methodology in her firm, she was prepared when an unexpected financial downturn occurred. She saw the benefits of Profit First in real time. That experience cemented the practical reality of prioritizing profit. From implementing Profit First accounting, reframing overhead as an investment, and overcoming fear around financial visibility, Jennifer shares how small changes in financial thinking created major changes in both her business and her life. Today, she views profit not as something to avoid, but as something that protects the future of her firm, the people she serves, and her family. Gaining Financial Clarity For Jennifer, one of the biggest mindset shifts was recognizing that profit and purpose are NOT opposites. A law firm that protects its profits is a law firm that can survive economic downturns, support its team, continue serving clients, and create stability for the owner’s family. When law firm owners avoid looking at their numbers, anxiety grows. But when they begin building systems that protect profit, they gain the confidence to make objective financial decisions. The result is not just a healthier business, but a healthier relationship with money itself. Connect Contact Jennifer Walker Gates directly: www.JLW.law Referenced in episode: Static and Dynamic Overhead episode  How To Manage a Small Law Firm Mentioned: Profit First by Mike Michalowicz 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!

“To want your law firm to be anything less than all it can be, that’s abnormal. Especially when you consider that at least part of a law firm’s success is dependent upon the law firm helping more people.” – RJon Robins, author of Profit First for Lawyers Every law firm owner wants their business to be successful. So why do so many stay stuck in patterns that keep them from reaching their full potential? In this episode, we explore a counterintuitive truth: most people are more afraid of success than they are of failure. The Subconscious Comfort Zone Your subconscious loves to be comfortable. Anything familiar feels safe, even when it’s objectively harmful. Struggle becomes normal. Workarounds become routine. Friends who enable mediocrity become your circle. But success? That’s unfamiliar territory, and unfamiliar feels dangerous to your subconscious. What You’ll Discover Why struggling feels safer than succeeding to your subconscious mind Why you should give your subconscious the middle finger How to recognize when fear of success is masquerading as other excuses The basic business practices that create predictable results Why awareness is the first step to overcome hidden limitations Challenge yourself to step into the unknown and experience the kind of profitable life you have always dreamed of. It is possible. You can do it. Make the decision and ,more importantly, take the actions that will get you there… even when it’s scary. Connect 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!

“To be called a financially successful business, a law firm must generate enough total owner benefit for you to live the way you want to live. Not just what you’re willing to settle for.” – RJon Robins, author of Profit First for Lawyers If your law firm is covering the bills, is that enough? For many law firm owners, the goal quietly becomes survival. Making payroll, paying expenses, and getting through month to month is considered success, but is it? Not according to RJon Robins. That’s not success. That’s settling. In this episode, estate planning attorney Adam Hicks shares how shifting from a mindset of survival to one of intentional profitability transformed both his firm and his life. After years of working in the billable hour model and later running a solo practice, Adam found himself stuck in the “doctrine of sacrifice.” He was doing just enough to get by, but never building a business that truly worked for him. From Settling to Profitability Everything began to change when he first implemented Profit First and then, a few years later, went deeper into the principles behind Profit First for Lawyers. That was when he began asking himself, “What do I actually want?” From there, Adam began building systems, tracking real data, and making decisions based on how his firm could support the life he envisioned using the same principles taught in Profit First for Lawyers. Today his firm has crossed the million-dollar mark, generates meaningful profit, and operates as a true business and not a job he owns. Key Takeaways Covering expenses is not success: A profitable law firm should support the life you actually want to live. Stop settling for survival: Most law firm owners aim for “enough” instead of building intentional profit. Profit First changes your behavior: Even small allocations shift your mindset and decision-making. Know you data, not just your numbers: Leads, conversions, and client flow determine your future results You are a business owner first: Growth begins when you stop thinking like only a lawyer. When you stop settling, everything changes. How you price your services, how you marketing your firm, how you hire your team, and how you lead your business. On the surface settling and profitability may look similar, but the produce completely different outcomes and completely different lives. Connect Contact Adam Hicks directly: www.lanierlegacylaw.com Referenced in episode: How To Manage a Small Law Firm 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/AluwQ-S2w00

“We want to build a business that is sustainable and we want to build a business that can operate independently of you and your brilliance.” – RJon Robins, author of Profit First for Lawyers Why Your Law Firm Needs a Plan (and the Math to Back It Up) If you wouldn’t take a case to trial without a plan, then why would you run your law firm without one? In this episode, we explore one of the most overlooked (and uncomfortable) topics for law firm owners: your written business plan. Featuring an exclusive audiobook clip from Profit First for Lawyers, RJon explains why a business without a clear plan for generating revenue and profit isn’t really a business at all. It’s just a job. This is NOT about writing a 40-page document that will gather dust on a shelf. It’s about building a simple and, more importantly, actionable plan that answers the only questions that really matter: How much money do you actually want to make? What does your firm need to produce to get there? And what has to happen in marketing, sales, and production to make it real? RJon walks through the math step by step, from defining your ideal lifestyle to calculating revenue targets, case volume, and the number of leads your firm needs each month. At the end of the day, your family doesn’t care about your conversion rates or your KPIs. They care about whether your firm can deliver the life you promised them. Key Takeaways: A business plan is not optional. Without one, your firm isn’t a business, it’s a job dependent on you. Start with what you WANT, and not what you’ll settle for. Reverse engineer your numbers to determine what it costs to support your life. Keep it simple and actionable. A business plan only works for you if you use it. A business plan built on the numbers that matter (and the actions your firm will take) is the difference between owning a business that works for you and owning a job that depends on you. On the surface, they may seem the same, but the ability to truly live the life you want is worlds apart. Resource: Free Business Plan Workbook Ready to build your plan? Scan the QR code or click this link to access your free Business Plan Workbook, which can also be found on page 94 of the Profit First for Lawyers book. Use this step-by-step workbook to create a simple and effective plan for your firm. Connect 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/cjkPPsh1E5c

In a well-run law firm, there is really no reason to ever have any accounts receivables at all. Not if you are using the IOLTA Client Property Trust Account the way it was actually invented and meant to be used.” – RJon Robins, author of Profit First for Lawyers The Hidden Profit Killer In this episode, Ed Gegan reveals how he stopped the profit-eating cycle that was destroying his cash flow and peace of mind. By adopting profit first accounting principles and taking action on the lessons learned from reading Profit First for Lawyers, Ed has seen tremendous law firm growth. He shares the shift his business, team, and family transformed when he stopped the “bill and pray” method of getting paid for his services. In a clip from the audiobook recording of Chapter 14 “For When You Really Take Profits Seriously”, RJon breaks down the devastating mathematics when clients don’t pay. One non-paying client creates a scenario where you are working multiple cases just to break even. The result? Exhausted owners with no enthusiasm left for the business. A Profitable Transformation Like Ed, most law firm owners don’t realize how accounts receivable systematically destroys their profitability. Once he took action and developed systems, processes, and procedures to educate clients and staff, things began to change dramatically. He went from avoiding his financial reports to having predictable cash flow that arrives on specific dates every month. His secret? Leveraging the IOLTA trust accounts the way they were originally intended to be used combined with a systematic approach that clients and staff prefer. Key Takeaways: Why the traditional “bill and pray” method is killing your profits The simple analogy that makes clients understand upfront payments How proper billing procedures create better client relationships (not worse ones) The unexpected secondary benefit of eliminating A/R How financial confidence enables law firm owners to take calculated risks and grow The Bottom Line As Ed puts it: “People don’t have an objection to paying for the services that they’re getting.” The fear of asking for payment upfront is often worse than the reality. Making that change is how he was able to grow his law firm from $270,000 to just under $1M in revenue in 3 1/2 years. Better yet, his specific system requires minimal staff involvement because much of it is automated. Which has made for a law firm that operates like a profitable well-oiled machine. Mentioned In This Episode Bookkeeping That Does Not Suck Episodes on Mindset and Profitability: Break Through Your Profit First Mindset Block Profit First: The Right Choice A Case for Profit First Your Invitation to Live a Profitable Life Connect Contact Ed Gegan directly: www.geganoffice.com or 813-248-8900 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/pC5kL9O5h40

“The problem is most people don’t take the time to think about their definition of success. Which is kind of ironic considering that as lawyers, we are trained that the first thing you do when you’re drafting a contract or making a settlement agreement is you have to define the terms.” – RJon Robins, author of Profit First for Lawyers Welcome to the latest season of the Profit First for Lawyers podcast. In this season premiere, we tackle the foundation that makes everything else possible: defining success in measurable terms. Most lawyers spend decades building their firms without ever defining what “successful” actually means to them. In this episode, RJon reveals his three-part framework and demonstrates exactly how to transform vague aspirations into trackable, achievable goals. The Success Framework Pulled directly from Chapter 4 in the Profit First for Lawyers book, RJon defines a successful law firm as one that achieves: Financial Success: Generates enough total owner benefits for you to live the way you WANT to live. Not just what you are willing to settle for. Personal Success: Operates with systems robust enough to give you freedom of time for every aspect of life. Professional Success: Generates revenue by helping people solve problems and create better futures. Make It Measurable RJon demonstrates the process of how to define success during a powerful clip from 2016 with a real law firm owner. He guides them through how to define and measure success financially, personally, and professionally. As RJon states, without measurable definitions, “there’s room to bullshit yourself.” Beautiful sentiments about spending more time with family, or revenue or fitness goals are aspirational, but not measurable. By defining success objectively, it becomes a standard that can be tracked and therefore achievable. How you define success is entirely up to you. Not friends, family, colleagues, or neighbors. It is personal and only your opinion matters. Your definition must be personal, honest, and quantifiable. Take Action Today Define success in measurable terms: How much profit do you need to live the way you WANT? (Financial) What specific freedoms does your business need to provide? (Personal) How will you measure your professional impact? (Professional) How will you track progress toward these success goals? (Measurement) Connect 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/irTjJV9uoL0?si=ghzOc40Ga-FJm6Y_

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Ready to build your financial muscle? Discover how even in a cash crunch you can take your profits first.

It's time to take control of your financial future. Discover why following outdated rules may be preventing your law firm from reaching its full profit potential.

Stop comparing gross revenue and start tracking total owner benefits. Discover why this metric is key to measuring your law firm's success.

Discover the hidden costs of working without financial controls and why working without profit protections in place is a gamble with your time and peace of mind.

RJon Robins challenges law firm owners with a thought experiment: What if you had to tell every prospective client about your firm's financial finances? Would they still hire your firm?

In the first of a two-part series, RJon challenges the myth that profit is selfish and reveals why financial stability is a professional and ethical responsibility.

Tired of feast or famine finances? Learn why the key to financial stability is to treat profit as a habit, not an event.

Are you sabotaging your law firm's success? RJon Robins pulls directly from Chapter 16 of the Profit First for Lawyers book to reveal 2 choices that destroy profitability and how to fix them.

Sometimes you have to act before you believe. Discover how horse training principles also apply to law firm owners overcoming resistance to profitable change.

What do you really want from your law firm? Discover why building what you want is easier and more profitable than tolerating what you don't want.

A case for why Profit First methodology works across practice areas and why lawyers need business training

Learn the reason why efficiency drives profitability. By defining the right roles for the right tasks, law firm owners can focus on high-value work.

Discover how a Profit First mindset shift transformed Nequosha Anderson's business and personal life. Consider this your invitation to live a profitable life.

Discover the hidden math behind A/R and why even busy law firms can remain unprofitable.

Stop waiting for the "perfect time" to implement Profit First. Hear how Marie Drake transformed her business and life after she adopted Profit First Accounting Principles.

Discover the uncomfortable truth about cash flow and law firm finances that could save your practice from financial disaster.

"You know what every single personal injury lawyer can tell you that every single one of their clients all have in common without one single exception? None of them expected to get in a car wreck the morning they woke up, left the house, and got in the car wreck. Life just happens." – RJon Robins In this episode of the Profit First for Lawyers podcast, we look at what happens to your business and family if you get hit by a bus tomorrow. It sounds dramatic, but this sobering question matters more than almost anything else we've talked about so far. For a topic this important, RJon delivers some real talk about the difference between having a business versus having a job where you work for yourself. Here's a hint: If your business cannot run without you, you don't really have a business. RJon in the Studio and on the Stage In a clip from the audiobook recording session, which has since become cutting room floor content, RJon breaks down what it really means to build a sustainable business. The reality is no logical person would invest in a business without understanding how it is expected to generate revenue and profit. So why would you ask your family to invest in a business that does not have clear systems for continuing on without you? A second clip from a 2023 How To MANAGE a Small Law Firm Live Quarterly Meeting brings to light the three choices we all make when it comes to financial literacy. Choice one: become financially literate and be in control of your future. Choice two: remain financially illiterate and settle for life's leftovers. Choice three: be financially literate but ignore your financials. The question both clips bring to the surface: Are you making the right financial literacy decisions? 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 button below to start plugging the profit leaks in your firm. Your future self will thank you for it! Tea Time with Karli Karli shares a recent conversation with RJon that left her silent and stunned. It started with a simple question and ended with a reality check so powerful it sent her into immediate action. The scenario RJon painted will make you rethink everything you know about protecting the people you love. Key Takeaways Life happens without warning so build systems that ensure your business can run without you Financial literacy is a choice Stop waiting for the "right time" to take action This episode is a reality check about taking responsibility for both your business and your family's future. Whether it's building systems that allow your law firm to generate revenue without your constant presence Or creating legal documents that protect your loved ones, the message is clear: if you love them, plan like you won't be here tomorrow. Connect and Engage 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!

"You don't have to know hardly anything about bookkeeping or accounting or math to become very effective in your use of these important financial concepts." – RJon Robins In this episode, hear how law firm owner Xavier Martine has transformed his law mindset around his firm's finances, from financial fear to full command of the numbers. As a member of How To Manage A Small Law Firm, he didn't just grow his revenue, he rewired how he thinks about profitability, systems, and what it truly means to run a law firm like a business. After adopting Profit First Accounting principles, he began treating profitability like a new language, one he could study, speak, and eventually master. RJon in the Studio RJon reminds listeners that profit management doesn't require complex math. What it does require is clarity and a willingness to stop avoiding your law firm's financials. The clip is pulled directly from Chapter 12 of the Profit First for Lawyers book. Read it and put the concepts into action to begin your journey towards financial fluency. Key Takeaways: Financial fluency is a language you can learn Profit is not a reward for what's left over, it's a decision made first Reading your financial reports helps prevent costly blind spots Setting profit goals raises your firm's standards and performance Value and profit go hand-in-hand when service is prioritized 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 button below to start plugging the profit leaks in your firm. Your future self will thank you for it! Connect and Engage Connect with Xavier Martine directly by visiting Martine Law 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!

"Profit cannot be treated as an event. It must be treated as a habit, but that is not how most business owners approach the profitability of their business." - RJon Robins If you've been waiting for your next client or that one big case to swoop in and save your law firm's profitability, this episode is your wake-up call. RJon drops some serious truth bombs about why chasing the next big thing is actually sabotaging your success. RJon in the Studio To understand why profit cannot be an event, RJon breaks down the Primacy Effect (page 186-187) and how it is secretly blocking your law firm's profitability. Here's the kicker: you naturally pay attention to what comes first and ignore everything else. So when you put profit last (after payroll, bills, everything else), your brain treats profit as an afterthought. The solution? Flip the script entirely! Decide what you want to take out first before anyone else gets their hands on it, and force your business to get creative with what's left over. In a clip from a guest appearance on The Agile Attorney podcast hosted by John Grant, RJon delivers a vivid warning to law firm owners who have a hard copy version of the Profit First for Lawyers book. "You wouldn't want your spouse or significant other to get their hands on my book if you're not already doing Profit First, 'cause they're gonna beat you with it until you do." Tea Time with Karli Karli was in the podcast recording session with RJon and found the mental image of a law firm owner being hit with the Profit First for Lawyers book by their spouse for not taking their profit first humorous, until she realized she was guilty of the same offense. This "tea time" moment was when she knew there was no excuse for her or anyone not to take their profit first. This was one of the many reasons why she opened up her own personal profit account. Key Takeaways: How the Primacy Effect impacts your business success Why chasing the "next big thing" is not a profitable solution Your brain ignores what comes last, so make profit come first Don't wait for a potential profit event. Build a profit habit. Small consistent actions are better than gambling on a "someday" windfall. 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 button 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 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!

"If your law school experience was anything like mine, chances are they taught you nothing in law school about the business of how to manage a law firm. In fact, they may have even given you the same bad advice that I have heard repeated from many thousands of lawyers who I have had the opportunity to work with over the years. Just be a great lawyer and the rest will take care of itself. Yeah, right." - RJon RobinsIn this episode, Karli sits down with Kate Lincoln-Goldfinch, shares her law firm owner journey from struggling to hit $250,000 in her first year to being on track to break the $10 million barrier. She opens up about her resistance to putting profits first, the dark times of cash crunches, and how proper financial structures transformed not just her business but her entire life and relationships. Kate's advice for early-career lawyers: choose curiosity over resistance, and say yes to opportunities for growth and learning. In The Studio: In a clip from the recording studio for the Profit First for Lawyers audiobook, RJon Robins talks about how law school does little to prepare lawyers to be business owners. A story about  magic law firm management elves illustrates how many law firm owners run their business on fairytale thinking instead of taking action with a proper plan. Key Takeaways: Profit First creates personal and professional transformation Law school doesn't prepare you for business Fire yourself by hiring people better than you Enjoy the journey, not just the milestones Be curious and open-minded 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 button below to start plugging the profit leaks in your firm. Your future self will thank you for it! Connect and Engage Learn more about Kate Lincoln-Goldfinch Subscribe to the Profit First for Lawyers podcast Watch episodes on YouTube Follow Profit First For Lawyers on social media: LinkedIn | Instagram | Facebook Email us your feedback at podcast@profitfirstforlawyers.com And most importantly, order your copy of Profit First for Lawyers today!

"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." If your law firm feels like it eats cash faster than you can make it, you're not wrong. The traditional approach to law firm finances is completely backwards. In this episode we are making the case for why you should stop procrastinating and finally take your profits first. RJon Robins, author of Profit First for Lawyers, explains why the typical formula of "sell as much as you can, pay everyone else first, keep whatever's left over" simply doesn't work for entrepreneurial law firm owners who want to be profitable on purpose. Key Takeaways: The traditional approach is backwards The reason why Parkinson's Law also applies to money Why Profit First forces innovation Gain objective accountability across your entire business ecosystem Kick procrastination to the curb 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 button below to start plugging the profit leaks in your firm. Your future self will thank you for it! Mentioned In This Episode Focus on Things That Matter with Daniel Ferro Does Your Accountant Have An Entrepreneurial Mindset? with Oscar Ferenczi Profit First - More Than Just A Book with Mike Michalowicz Connect and Engage Subscribe to the podcast Watch episodes on YouTube Follow Profit First For Lawyers on social media: LinkedIn | Instagram | Facebook Email us your feedback at podcast@profitfirstforlawyers.com And most importantly, order your copy of Profit First for Lawyers today!

The wait is over! Join us for an exciting new podcast season based on RJon Robins' bestselling book, "Profit First for Lawyers." This game-changing book has sold over 25,000 copies and is transforming a new generation of law firm owners who take their profit first. Connect with us: Subscribe to the podcast Watch episodes on YouTube Follow Profit First for Lawyers on Facebook, Instagram, and LinkedIn Order your copy of the book by visiting www.profitfirstforlawyers.com. Your future self will thank you for it.

Ron Saharyan returns to close out season two with a powerful message to law firm owners to take their profit first.

Accounts Receivable is sabotaging your law firm's success. Darren Wurz has practical and actionable insights on managing accounts receivable (A/R).

Dawn Mobley explains why doing your SKU homework, using the SKU Calculator, and SKU analysis can boost law firm efficiency and profitability.

A look at Cost of Goods Sold (COGS) an important metric for law firm profitability. A lesson taught by a group of teenagers to a room full of lawyers.

The role of ego in law firm management. Featuring exclusive content from RJon Robins' Profit First for Lawyers audiobook recording sessions.