Grow Your Law Firm Why Cash Flow Matters More Than Revenue in Law Firms With Greg Crabtree
Feb 7, 2025
45:21
Welcome to episode 265 of the Grow Your Law Firm podcast, hosted by Ken Hardison. In this episode, Ken sits down with Greg Crabtree, a speaker, author, entrepreneur, and financial expert who helps entrepreneurs build thriving businesses. Greg founded Crabtree, Rowe, and Berger, which was named to the INC 5000 list in 2019. Following this achievement, the firm merged with Carr, Riggs & Ingram CPA's and Advisors, a top 20 U.S. accounting firm, where Greg now leads the Simple Numbers Consulting unit. Why Timely Billing Optimizes Cash Flow
- Implementing prompt billing practices reduces administrative costs and speeds up revenue cycles.
- Setting aside profits for taxes and working capital ensures financial stability and motivates partners.
- Paying employees a market wage fosters financial transparency and reflects a business's true profitability.
- Efficiently assigning high-value tasks to skilled staff maximizes productivity and profitability ratios.
- Rising wages and a shrinking labor market strain the operational budgets of mid-tier establishments.
- Adjusting menu pricing and implementing efficient staffing strategies can mitigate profitability issues.
- Inflation increases operational costs, leading businesses to adapt pricing and wage strategies.
- Shrinking labor pools forces companies to focus on automation or international labor solutions.
- Economic downturns increase litigious behavior, driving steady demand for personal injury services.
- Efficient case turnover and strategic marketing bolster profitability in challenging markets.