The Hidden Cost of Missing Financial Controls
Profit First for Lawyers
How to Protect Your Profit
Carly outlines steps: examine feelings about profit, audit firm profitability, and install a profit protection system like Profit First.
“So I may wind up sacrificing some precious time with my family to solve that potential new client’s problem and still have no financial profit to show for it. This simple misalignment explains more problems in the legal industry than I can address in this small book.” – RJon Robins, author of Profit First for Lawyers
In this episode, we dive into Chapter 6 of the Profit First for Lawyers book and explore a deceptively simple yet powerful concept: the definition of profit. RJon explains what a profitable exchange actually is and shares a personal story about the trade-offs he makes as a dad and business owner. More importantly, he reveals why lawyers without financial controls often sacrifice time with family while gaining no financial profit in return. This is a recipe for burnout that affects far too many law firm owners.
Key Takeaways:
- Profit isn’t just about numbers on a spreadsheet, it’s about the value on both sides of every transaction
- Without a profit protection system, every client engagement becomes a gamble with your time and peace of mind
- The misalignment between effort and reward explains more problems in the legal industry than most realize
- If you wouldn’t work for free at someone else’s firm, you shouldn’t work for free in your own either
If any of these takeaways resonate with you, it might be time to examine where your firm stands when it comes to profit. Without financial controls in place, you’re essentially gambling every time you take on a client, betting your time, energy, and family relationships without knowing if there will be anything left for you at the end. That’s not just exhausting, it’s unsustainable. The good news is that this misalignment is fixable 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!
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