BE THAT LAWYER Ryan Kimler: Financially Healthy Law Firms by the Numbers
In this episode, Steve Fretzin and Ryan Kimler discuss:
- Understanding the amount of money you need to keep your law firm and your personal finances healthy.
- Reinvesting money into your firm.
- What a typical comp plan looks like for small firms.
- A breakdown of what minimums a financially healthy law firm looks like by the numbers.
Key Takeaways:
- As a law firm, when you’re paying hire salaries, you need to look at your bonus plans because those can eat into your firm’s profitability.
- You have to have enough cash to keep the law firm running and financially healthy.
- Don’t be afraid to do the math or raise fees when needed. If your attorney cannot bring in the right amount to keep the firm on secure financial footing when working their hours, consider raising fees. Even small amounts add up over the year.
- Retirement is the biggest financial piece most law firm owners miss.
"Salaries are definitely continuing to grow, and they're on the higher end. And I think when that's the case, as a law firm, when we're talking about financial health here, you have to pay attention to and really look at your bonus plans. Because when you have a higher payroll cost, those bonus plans can really cut into profitability. So you have to be careful with those." — Ryan Kimler
Read more from Steve at Above the Law: AboveTheLaw.com/tag/Steve-Fretzin/
Thank you to our Sponsors!
Ready to go from good to GOAT? Attend PIMCOM the inaugural personal injury mastermind conference Sept 15-17, 2024. Use promo code BeThatLawyer to get $200.00 off at https://www.pimcon.org/
Get Staffed Up: https://getstaffedup.com/bethatlawyer/
Lawmatics: https://www.lawmatics.com/bethatlawyer/
Episode References:
- The Money Guy Show: https://moneyguy.com/show/
About Ryan Kimler: Ryan Kimler is the Founder of Net Profit CFO, and he is the host of the Net Profit Podcast. At Net Profit CFO, Ryan and his team use their background in Accounting and Finance to help law firm owners do one thing; have a growing and more profitable business. Helping law firm owners have a growing and more profitable business means two things. One, your law firm has enough cash to grow and maintain a strong financial health. And two, your law firm produces enough cash for you as the owner to fulfill your wants and needs.
Connect with Ryan Kimler:
Website: https://netprofitcfo.com/
LinkedIn: https://www.linkedin.com/in/ryankfinancialclarityllc/
Connect with Steve Fretzin:
LinkedIn: Steve Fretzin
Twitter: @stevefretzin
Instagram: @fretzinsteve
Facebook: Fretzin, Inc.
Website: Fretzin.com
Email: Steve@Fretzin.com
Book: Legal Business Development Isn't Rocket Science and more!
YouTube: Steve Fretzin
Call Steve directly at 847-602-6911
Show notes by Podcastologist Chelsea Taylor-Sturkie
Audio production by Turnkey Podcast Productions. You're the expert. Your podcast will prove it.