Profit First for Lawyers

“So there’s a mindset problem going on here. How the owners of law firms think about what they think about, the excuses they make, the excuses they accept, the unexamined stories that they accept as gospel.” – RJon Robins In this episode, we are joined by Erika Ferenczi, Director of Brand Promise at How To Manage Enterprises, to tackle the elephant in every law firm: the mindset blocks that keep lawyers from being profitable. With nearly two decades helping entrepreneurs grow their businesses, Erika reveals why so many brilliant lawyers struggle financially and shares jaw-dropping transformation stories. In The Studio In a clip from Chapter 4 of the Profit First for Lawyers book, RJon explains how law school creates a dangerous myth: that success will magically happen IF you are a good enough lawyer. Something he quickly debunks. Instead RJon suggests that it is how law firm owners think about what they think about in their business and lives that determines success. Why? Because at the core, success stems first from a profitable mindset. Key Takeaways Paying yourself first creates urgency that forces you out of your comfort zone Remove the shame and negative connotation around making money for your services Start the Profit First habit with any amount right off the top The best thing you can do for the world is to be successful When you win financially, everyone wins: your family, employees, clients, and your community NEW PODCAST ALERT: The Exponential Entrepreneur Erika announced the upcoming launch of The Exponential Entrepreneur podcast featuring lessons facilitated by RJon Robins, Alejandra Leibovich, Oscar Ferenczi, and Erika Ferenczi based on their Practical Profitable Mindset Program. Each week these four battle-tested entrepreneurs are sharing the mindset shifts every entrepreneur needs to experience exponential growth. Listeners are in for a treat as we share the trailer for this powerful new podcast. 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! 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!

“There are too many great lawyers with loads of potential, but not enough profits to invest in more consistent marketing and more professional sales systems. Too many of these great lawyers are frustrated and cannot live up to their full potential.” – RJon Robins In this episode we revisit the seven main parts of every successful law firm and explore what happens when one of these critical components falls out of alignment. RJon walks through five all-too-common nightmare scenarios that plague law firms. He dissects how great marketing with bad sales is as challenging as having great lawyers but lacking financial controls. The kicker? Profit First gives you the tools to solve most of these problems before they sink your firm. The Seven Main Parts Refresher We covered these seven parts in detail in season one. Click the link for each part to hear those episodes. Of course, these seven main parts can also be read in Chapter 5 beginning on page 32 in the Profit First for Lawyers book. Marketing Sales Production People Physical Plant Money and Metrics You/Owner’s Mindset When these parts are aligned, your business runs smoothly, grows faster, and you are able to live the life you want professionally, personally, and financially. When they are not? Welcome to the nightmare scenarios which can be found in Chapter 4 beginning on page 21 in the Profit First for Lawyers book. Five Nightmare Scenarios (And Why They’re Killing Your Profits) Great Marketing, Bad Sales Great Marketing and Sales, But Not Enough Staff Capacity Amazing Lawyers and Staff, But Bad Marketing Great Everything, But Poor Infrastructure Potential for Greatness, But No Financial Controls The Profit First Solution As RJon says: “Profit First solves most of these problems, or rather, implementing Profit First gives you the tools with which you can solve most of these problems.” 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! Connect and Engage: Mentioned: Pop Quiz on pages 26 & 27 in the Profit First for Lawyers book 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!

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.

“ So people who believe in the doctrine of sacrifice encourage sacrifice and take pride in sacrifice for its own sake. I believe that profit is good. That profit comes from the exchange of something of a lower value to gain something else that is of a higher value.” – RJon Robins, author of Profit First for Lawyers The legal industry has a problem with glorifying suffering. In this final episode of our three-part series on escaping the doctrine of sacrifice, we flip the script on what sacrifice really means for law firm owners. In two compelling clips from the 2021 livestream that became the foundation of the Profit First for Lawyers book, RJon Robins shares key insights about profitable sacrifice. He challenges the belief that creating value requires endless suffering and shows how to make sacrifices that actually expand your life rather than diminish it. Key Takeaways: Reframe sacrifices as investments Stop calling self-neglect service Profit is evidence of mutual value, not greed Choose sacrifices that expand you and make your life bigger, not smaller Real profit benefits both parties In this episode, RJon reframes sacrifice through the lens of profit. This fundamental shift transforms how to understand sacrifice, from martyrdom to mutual profit, from suffering to strategic investment, from bleeding for your business to building a real business that works for you. 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! Connect and Engage: Link to Part 1 and Part 2 of Escaping the Doctrine of Sacrifice series 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!

“In addition to the typical financial statements… there are other key performance indicators and metrics that you’re going to want to keep track of on your dashboard so that you can look at a glance to see if everything’s working properly under the hood.” – RJon Robins, author of Profit First for Lawyer Inspect what you expect. That’s the mindset behind this episode. Law firm owner Josephia Rouse shares how transforming her approach to financial management helped her move from reactive to intentional. This episode features an audiobook clip from Chapter 5, Part 6: Money & Metrics, where RJon uses car gauges to illustrate why every profitable law firm needs a financial dashboard. By building systems, dashboards, and tracking daily metrics, Josephia has learned to read her firm’s ‘gauges’ bringing her financial clarity, control, and confidence. With the right people (bookkeeper, controller, and CFO) in place, she turned her firm into a well-designed business that supports her team, her clients, and her family’s goals. The result: a thriving 22-person law firm built not by accident, but by design. Key Takeaways Track your firm’s gauges daily: Like a car dashboard, your metrics reveal what’s running smoothly and what needs attention. Inspect what you expect: Systems and data only work when you review them consistently and act upon what they show you. Invest in the right people: Delegating to qualified professionals allows you to focus on your highest-value work. Choose to grow: True transformation starts with a decision to build, learn, and take ownership of your numbers. Build your stairs: Progress happens one spreadsheet, one system, one habit at a time. 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! Connect and Engage: Connect directly with Josephia Rouse: https://josephialaw.com Link to Ep. 19: The 7 Parts of Every Successful Law Firm – Part 6: Money & Metrics 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!

“Lawyers who are broke are not in a position to do much good… Not for their clients, their family, their community, least of all themselves.” – RJon Robins, author of Profit First for Lawyers In Part 2 of our series on Escaping the Doctrine of Sacrifice, we dive deep into the belief system itself. RJon further explores the idea that suffering somehow makes us good, working ourselves into the ground is noble, and that profit is something to be ashamed of. He references the philosophy from the How To Manage A Small Law Firm employee handbook that every team member reads it during onboarding. In a clip taken from the 2021 livestream which would eventually become the Profit First for Lawyers book, RJon challenges the legal industry’s celebration of sacrifice for its own sake. The true cost? It drains your resources, time, and capacity to serve. Instead, RJon offers a profitable alternative rooted in stewardship, not selfishness. Key Takeaways The Doctrine of Sacrifice celebrate giving up what you value for what you don’t value The legal industry encourages sacrifice in overt and implicit ways: The billable hour Pro bono awards for lawyers who can barely provide for their own families Censuring the word “profit” Being broke drains you of financial resources, time, mental energy, and the capacity to serve your clients well Profit isn’t selfish, it’s stewardship that ensures you’re resourced enough to serve at your highest level The Doctrine of Sacrifice is something most lawyers don’t even realize they’ve been influenced by it. But when you glorify struggle, burnout, and endless hours without measuring the value created, you are practicing sacrifice for its own sake, and that helps no one. 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! Connect and Engage: Link to Part 1 of Escaping the Doctrine of Sacrifice Coming up next week: Part 3 of Escaping the Doctrine of Sacrifice More information about The Doctrine of Sacrifice can be found at the end of Chapter 6 in the Profit First for Lawyers book 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!

“It depends on what you mean by profit. This answer will set you free, and as a result, this way of thinking will make your law firm far more profitable.” – RJon Robins, author of Profit First for Lawyers Defining Profit What does profit really mean to you? For estate planning attorney Ali Goff, the answer goes far beyond “revenue minus expenses.” In this episode, Ali shares how understanding total owner benefits (time freedom, lifestyle choices, and peace of mind) completely transformed how she runs her firm and designs her life. When faced with a difficult quarter, her commitment to taking distributions even when it felt uncomfortable, forced better decisions and ultimately led to breakthrough growth. Ali’s journey from dismissing Profit First to embracing it reveals why redefining profit is the key to building both a successful business and a meaningful life. Key Takeaways The business should fund the life you want to live High standards benefit your team, your clients, and your business Your definition of profit should align with your life goals, not just accounting principles Consistency in distributions matters more than the size of the distribution If you only take distributions when it’s comfortable, you’re not really doing Profit First Understanding what profit really means for your business and life changes everything about how you run your firm and measure success. 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! Connect and Engage: Connect with Ali Goff directly: www.gofflegal.com Mentioned: Mike Michalowicz – Profit First: More Than Just a Book episode 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!

“It is a sign of extreme entrepreneurial immaturity to discount or dismiss or ignore, or not even be aware that there’s some luck involved in your success.” – RJon Robins, author of Profit First for Lawyers Welcome to our three-part series on The Doctrine of Sacrifice. This is RJon’s personal crusade to free entrepreneurs, especially lawyers from the long-held belief that sacrifice is noble and that focusing on profit is somehow morally wrong. In this first episode we explore how understanding the role of luck can actually make you more profitable. In clips taken from a 2021 livestream, RJon shares a passage from the How To Manage A Small Law Firm internal employee handbook. Something that every team member reads during their onboarding process. This passage blends ideas from Ayn Rand, Eric Hoffer, and RJon’s own experience to explain why luck is essential for long term success. Key Takeaways: Success and failure both involve luck If you continue to make rational decisions and don’t quit, luck will eventually work in your favor Perpetual lack of success isn’t just bad luck, it’s often a pattern of poor decision making Understanding luck’s role frees you to take calculated risks without fear of “breaking” your success So, if you’ve been attributing your struggles entirely to bad luck or your success entirely to brilliance, this reframe changes everything about how you run your 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! Connect and Engage: Coming up next week: Part 2 of Escaping the Doctrine of Sacrifice More information about The Doctrine of Sacrifice can be found at the end of Chapter 6 in the Profit First for Lawyers book 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!

“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.” – RJon Robins, author of Profit First for Lawyers In this episode, Profit First certified controller, Veronica Zambrano joins us to break down exactly how to implement Profit First in your law firm (even if you’re in a cash crunch). Using her ‘financial gym’ approach, Veronica shares the simple practical rollout plan she uses with How To Manage A Small Law Firm (HTM) members. Building your way from a 1% allocation to your target percentage of 15% is just like progressively lifting heavier weights at the gym. Veronica shares her favorite clip of RJon in the studio taken from the Chapter 8 audiobook recording of the Profit First for Lawyers book. Then it’s time for show and tell as she walks us through how Profit First works using the HTM Profit First Allocation Calculator tool she uses for law firm owners. (screenshots below) Veronica also addresses the fear that stops many law firm owners from starting Profit First and why waiting for the “right moment” is the wrong strategy. Over the years, she has seen the system work time and time again with law firm owners who were tired of their excuses and ready to take action to become profitable. Key Takeaways: The best time to start Profit First is when you make the decision, not when your firm is “profitable enough” Starting at just 1% makes a real difference without compromising your operations The system is flexible, reevaluate every quarter and adjust based on your businesses’s actual performance 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! Connect and Engage: Mentioned: Profit First Assessment Calculator 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!

“While you may be a bold, independent thinker when it comes to the practice of law and in other areas of your life, there’s a very good chance that you’ve been thinking a lot like a lemming when it comes to the profitability of your law firm.” – RJon Robins, author of Profit First for Lawyers In this episode we revisit a crucial topic from season one that deserves a fresh look, especially if your accountant or bookkeeper has been pushing back against Profit First. For deeper insights, take a look at Chapter 8 from the Profit First for Lawyers book about why GAAP was not meant for you. In a clip pulled from the original 2021 livestream recording, RJon challenges the conventional wisdom of GAAP (Generally Accepted Accounting Principles). He explains why blindly following rules created in the 1930s by 18 accountants trying to appease Wall Street regulators may be preventing your law firm from reaching its full potential. The fact is, GAAP was not designed with your small law firm’s profitability in mind. Key Takeaways: GAAP was designed for publicly traded companies in the 1930s, not for small independently owned law firms GAAP solves problems you probably don’t have and uses criteria you may not share Your bookkeeper or accountant should not dictate how much profit you’re allowed to keep from your business If you’ve been accepting “that’s just the way it is” as an answer when it comes to your law firm’s finances, it’s time to challenge that thinking. The status quo was not designed for your success. Take Action: Schedule one hour this week to review your numbers and ask yourself: “What would happen if I decided today how much profit I was going to keep?” Take control of your financial system. Stop letting your bookkeeper or accountant dictate your profit. Design a system that puts you, your family, and your profit first. Read Chapter 8 of Profit First for Lawyers: RJon outlines the practical specifics of GAAP’s intended purpose and why you can choose to opt for a Profit First system instead. 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! Connect and Engage: GAAP Was Not Meant For You episode: video | audio from Chapter 8 of the Profit First for Lawyers book 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!