“If you’re not paying attention to core working capital, it’s like waking up one day and all of a sudden you’re in the middle of a shit storm. And you’re like, “How did this happen?!” – RJon Robins, author of Profit First for Lawyers

In the final episode of our seven-part Financial Literacy Series, RJon introduces one of the most important concepts for long-term business stability: core working capital. Drawing from both the Profit First for Lawyers audiobook and the 2019 live workshop, he explains why maintaining adequate working capital isn’t about fear. It’s about creating the financial cushion that allows you to grow intentionally instead of constantly reacting to cash flow challenges.

Throughout this series, we have talked about understanding your numbers, calculating Total Owner Benefit, determining your normalized salary, implementing Profit First, and strategically getting out of production. Core working capital brings all those lessons together.

Our exploration into what it means to become financially literate as a law firm owner has been about understanding the story your numbers are telling you. This knowledge can help you make better decisions for your business, your family, and your future.

Action Steps

While financial literacy does not eliminate uncertainty, it does give you the confidence to make informed decisions about your business growth. As RJon has explained throughout the series, the goal isn’t to simply accumulate cash. It is to build a business that gives you more options, greater stability, and the freedom to think beyond today’s challenges.