Profit First: The Right Choice

9 snips

Oct 30, 2025

Joam Alisme, founder of Alisme Law LLC and a seasoned expert in complex business litigation, shares his journey from generating $60K to nearly seven figures by adopting the Profit First methodology. He discusses the importance of implementing five foundational accounts for better financial management and how separating money transformed his approach to taxes and owner salary. Joam emphasizes how these changes led to improved client service and personal achievements, urging skeptical law firm owners to embrace this system for their financial health.

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INSIGHT

Separation Forces Financial Portion Control

Separating revenue into designated accounts forces financial portion control and better decision-making.
Profit First mimics envelope budgeting to prioritize profit, taxes, salary, and operations.

ADVICE

Open Five Foundational Accounts

Open five foundational accounts: income, profit, owner's pay, taxes, and operating expenses.
Start profit at just 1% and increase gradually as the business grows.

ANECDOTE

From One Account To Systematic Reserves

Joam had only one operating account early on and scrambled to pay taxes each year.
Implementing Profit First created systematic owner pay and tax reserves, removing the year-end scramble.

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”Those of us who embrace Profit First as a way of life, we force ourselves to get creative with the money we have left over in the account for operating expenses.” – RJon Robins, author of Profit First for Lawyers

In this episode, Joam Alisme shares why implementing Profit First was the right choice for his firm and why it’s time for fence-sitting law firm owners to take the leap. As RJon explains in the featured clip from the Profit First Summary chapter in the book (page 165), “We believe it’s better to make tough choices in business than to have to make tougher choices at home.” Joam’s story proves this point, by choosing to follow Profit First methodology, he has transformed his practice from a $60,000-a-year firm in 2020 to a firm that is approaching seven figures just five years later.

The Five Foundational Accounts

In the clip from the audiobook recording session, RJon explains how the Profit First methodology operates with five foundational bank accounts:

Main Income
Profits (starting with just 1%)
Owner’s Salary
Taxes
Operating Expenses

By separating revenue into these accounts, law firm owners naturally embrace financial portion control, just like Mike Michalowicz’s grandmother used to separate the family income into different envelopes for different purposes.

From Scrambling to Systematic

Joam shares how he went from scrambling to pay taxes to having a systematic approach with dedicated accounts. Starting with just 1% for profit, he gradually increased the percentage as the business grew. The results speak for themselves: travel to exotic locations, paid-off credit card debt, student loans nearly gone, and purchasing his first property – all while growing his law firm.

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!

Profit Leak Assessment: Click to begin your free assessment.

Connect and Engage:

Connect directly with Joam Alisme: https://alismelaw.com
Mentioned: Mike Michalowicz
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