“Let’s keep in mind, rapid growth consumes cash. You burn cash to grow your firm.” – RJon Robins, author of Profit First for Lawyers

Growing your law firm requires more than wishful thinking. It requires a deliberate plan.

This episode pulls from RJon’s original 2021 livestream, where he spoke through the material that would eventually become Profit First for Lawyers. The core message is simple, yet one that is often misunderstood: temporarily sacrificing higher profit margins can be a smart investment when it’s part of a long-term strategy for building a stronger, more profitable firm that serves more people.

Through a simple comparison of two law firms, RJon demonstrates why a firm growing according to a deliberate business plan may report lower profit margins today while creating significantly greater profit, stability, and opportunity in the future.

Growth consumes cash. Hiring talented team members, investing in better systems, improving marketing, and expanding your firm’s capacity all require financial resources. The key isn’t avoiding those investments. It’s making them intentionally with a clear plan for where you’re headed.

Some of the most valuable returns on intentional growth never appear on a profit and loss statement. As RJon explains, a strong law firm creates more than financial profit. It creates greater personal freedom, increased stability, and the confidence that your business can continue operating even when you step away. The goal isn’t simply to maximize today’s profit percentage. It is to build a law firm that creates greater value over time.

“There is no place on the balance sheet for the freedom of getting to live life on your terms.” – RJon Robins, author of Profit First for Lawyers

Profit means something different to law firm owner John Cannon today than it did when he opened his law firm in 2019. In this episode, John shares how his understanding of profit has evolved since reading Profit First for Lawyers and implementing Profit First in his practice. John shares a powerful clip from Chapter 9 of the Profit First for Lawyers audiobook. It explores the idea that true profitability extends beyond dollars and cents to include freedom, intentionality, and building a business that supports the life you want to live.

Early in his career, self-described Type A personality John Cannon’s focus was simple: generate more revenue and grow the firm. As his firm matured, so did his definition of profit. Today, profit also means having the freedom to spend time with family, confidence in his leadership team, and the ability to step away from the daily practice of law while knowing the business continues to serve clients and his community well.

Implementing Profit First allowed John to build a business that reflects his personal priorities while also growing a profitable law firm. He emphasized how strategic planning, developing strong systems, delegating responsibilities, and consistently working toward his big-picture goals have been key to his success. He encourages law firm owners to define what a profitable life looks like for themselves and intentionally build a business that supports that vision instead of only measuring success by financial performance.

Action Steps

Connect with John Cannon directly at: www.cannonandassociates.com

Subscribe to the Profit First for Lawyers podcast

Watch episodes on YouTube

And most importantly, order your copy of Profit First for Lawyers today!

“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.

“If your law school experience was anything like mine, chances are they taught you nothing in law school about the business of how to manage a law firm.” – RJon Robins, author of Profit First for Lawyers

Sometimes the right book arrives at the right moment. For estate planning attorney Colleen Robinson, Profit First for Lawyers arrived in the mail just as she was in the midst of looking for solutions. She didn’t know what was missing, only that there must be a better way to run a law firm that would give her the clarity, control, and future she wanted.

In this episode, Colleen shares how one unexpected gift became the catalyst for a completely different way of thinking about running a law firm. She didn’t just read the book from cover to cover. She acted on what she learned. Each step created forward momentum, ultimately changing her business model and implementing Profit First. Throughout this process, she was able to significantly increase her firm’s revenue while redefining what profit means for her and her family.

Colleen began by learning the Seven Main Parts of Every Successful Law Firm and writing her first business plan. Working with her CEO helped clarify her vision for a business that aligned with her personal, professional, and financial definition of profit. Along the way, she discovered that running a successful law firm wasn’t simply about practicing law better. It was about intentionally building a better business.

Implementing Profit First changed more than Colleen’s finances. It changed the way she experiences business ownership. Instead of worrying about unexpected tax bills, she sets those funds aside before they’re due. More importantly, she has redefined profit to include time with her family, flexibility in her schedule, and the Total Owner Benefit her business provides. Now the business she is building reflects the life she wants to live, not the other way around.

Colleen’s transformative journey began with a book in the mail and a willingness to learn, the courage to act, and the discipline to keep moving forward one decision at a time.

Action Steps

And most importantly, order your copy of Profit First for Lawyers today!

“The law firm that cannot function without its owner or owners being there every single day doesn’t really have a business. They have a job.” – RJon Robins, author of Profit First for Lawyers

Do you dream of a day when you can step away from the daily production work inside your law firm? You’re not alone. Many law firm owners find themselves so immersed in the practice of law that they have little time to build a business that can operate without them. So, where do you begin?

In part six of our seven-part financial literacy series, RJon explains why getting out of production is not an overnight decision, but a gradual transition. This episode builds on concepts introduced in Part 4: What Is Your Normalized Salary? RJon takes things a step further by exploring one of the biggest challenges law firm owners will face as they begin replacing themselves inside the business.

Every role you perform in your firm has value. Whether you are acting as a senior associate, marketing director, salesperson, IT specialist, or janitor, someone must perform that work.

The goal is not to stop doing valuable work. The goal is to intentionally replace yourself where it makes strategic sense while increasing the firm’s profitability enough to support new hires.

In a candid Q&A session with law firm owners held during the 2019 Profit First for Lawyers workshop, RJon lays out a practical truth many law firm owners avoid: When you stop doing a job, the business should stop paying you for that job.

The only way to maintain or increase your compensation is to create enough profit to replace the value you once produced. Transitioning out of production doesn’t happen overnight. It requires intentional planning and disciplined execution. If you’re ready to begin making that transition, this episode is for you!

Action Steps

The goal isn’t to simply stop working. It is to build a business that can keep its promises to clients, team members, vendors, and you, even when you are not there every day. That kind of freedom is earned by intentionally building a stronger business.

Stay tuned for the seventh and final episode in the Financial Literacy Series, where RJon brings together everything you’ve learned. You’ll understand why financial literacy is one of the most important skills a law firm owner can develop.

“Entrepreneurially immature people won’t deal with unpleasant emotions, which is why they just end up trapped in this cycle of mediocrity their whole life.” – RJon Robins, from The Exponential Entrepreneur podcast

This week we’re doing something a little different. Instead of our regular Profit First for Lawyers format, we are sharing a special episode from The Exponential Entrepreneur podcast hosted by Erika Ferenczi. The clip in this episode was originally recorded as part of the Practical Profitable Mindset program while RJon was recording the Profit First for Lawyers audiobook. This lesson explores one of the most surprising obstacles to business growth: the fear of profit.

According to RJon, profit requires doing things that feel uncomfortable:

Fear naturally tells us to avoid discomfort. But when we avoid discomfort, we wind up avoiding profit as well. And there is science to back up this instinctive behavior. Drawing on the science behind the fight-or-flight response, RJon explains how fear affects our thinking, why our brains begin rationalizing emotionally safe decisions, and how those decisions can quietly limit both personal and financial growth.

One of the most thought-provoking ideas in this lesson is that every voluntary exchange creates some kind of profit. Some entrepreneurs choose emotional profit over financial profit. One example is undercharging a client or failing to send invoices because they want to avoid rejection. By recognizing these patterns, business owners gain the opportunity to make more intentional decisions that align with both their personal values and their business goals.

The question is not whether we are making a profit. The real question is: What kind of profit are you choosing?

“When you’ve taken your profit off the top, like we talk about in Profit First for Lawyers, and you’ve only got what you’ve only got to cover expenses, it forces you to be more honest with yourself. It forces you to grow up as a business owner and make better decisions.” – RJon Robins, author of Profit First for Lawyers

What if the way you’ve been taught to think about profit is actually keeping your law firm stuck? This eye-opening episode will answer that question clearly. In part five of our seven-part financial literacy series, RJon breaks down the fundamental difference between traditional accounting and the Profit First approach. This is a small but powerful shift that forces your business to grow up.

In the 2019 workshop, RJon walks How To Manage a Small Law Firm members through the real numbers showing what happens when expenses outgrow income. The traditional approach leaves room to tolerate unmeasured marketing, underperforming staff, and bad processes. Implementing Profit First removes that cushion and forces honest conversations and decisive action about what’s really working in your business.

As RJon writes in Chapter 8: “When you put profits first, you force creativity, ingenuity, and innovation into your business.” This means, instead of accepting low standards because there’s money to cover them, you’re forced to find smarter ways to get the same results more efficiently.

Take Action

Look at your own law firm and ask yourself, “If I protected my profit first, what would I have to stop tolerating in my business that is currently taking my profit?”

And that’s it. Just sit with that question. The reality is you already know the answer. So what actions will you take now that you’ve taken the time to recognize that honest truth?

Next Time: Join us for Part 6 where RJon walks through the practical application of stepping away from some of the various roles you currently hold in your law firm without tanking your income.

“Someone in your office is stealing from you. They may not be stealing money and putting it into their own pocket, but they’re stealing time. They’re giving away work for free.” – RJon Robins, author of Profit First for Lawyers

Many law firm owners focus on generating new business, increasing billable hours, and growing revenue. But bringing business into the firm is only part of what makes a law firm profitable.

In this episode, Jose Luis Perdomo, Fractional CFO at How To Manage a Small Law Firm, discusses one of the most common threats to profitability: unpaid invoices and growing accounts receivable balances. Drawing from a Chapter 14 clip by RJon Robins from Profit First for Lawyers, Jose Luis explores why outstanding balances create more than a cash flow problem. They impact:

And because collections conversations can feel uncomfortable, overdue balances are often allowed to linger while additional work continues to be performed. But every unpaid invoice that lingers as an accounts receivable balance represents labor, overhead, and resources that have already been invested. A best practice is to develop healthy collections practices long before an invoice becomes overdue. When collections become an afterthought, profitability suffers.

Every unpaid invoice tells a story. Often, that story begins long before work begins. Clear communication, well-defined expectations, replenishment policies, and accountability systems all play a role in the final outcome.

The goal is not simply to collect money that is already owed. The goal is to build systems that make timely payment the natural outcome. That prevents “free work” from becoming a common practice in your firm and collection problems before they occur. This leads to stronger cash flow, healthier profit margins, and a more sustainable business that can help even more people.

“One of the big problems that we see in your profit and loss statement is when your business is not paying you an appropriate normalized salary.” – RJon Robins, author of Profit First for Lawyers

Many law firm owners know what they pay themselves, but few have stopped to ask an important question:

What should the business be paying them?

In part four of our seven-part financial literacy series, RJon takes a deeper look at normalized salary. This is one of the key components of Total Owner Benefit discussed in the previous episode, Calculating Your Total Owner Benefits. Drawing from a 2019 Profit First for Lawyers workshop, he challenges a common assumption about an owner’s compensation:

A law firm owner’s salary should be based on the work they actually perform inside the business, not their title, credentials, or ownership stake.

A normalized salary is the amount a law firm would reasonably pay someone else to perform the same work you currently do inside the business.

Whether you are acting as a senior associate, marketer, salesperson, tech support, or even the occasional janitor, each role has a market value. Understanding how much time you spend performing each role helps create a more accurate picture of what your labor is worth to the firm.

Many law firm owners unintentionally blur the line between compensation for labor and compensation for ownership. When that happens, financial reports become harder to interpret and profitability becomes more difficult to measure accurately. But calculating a normalized salary creates greater clarity around both.

Normalized salary is not about assigning a value to yourself as a person. It is about creating a more objective understanding of the work you perform inside your business.

Action Steps

While this exercise may feel uncomfortable at first, it can provide valuable insight into how your time is being spent and whether your firm’s resources are aligned with its highest priorities. The clearer you become about how your time is spent and what that work is worth in the marketplace, the easier it becomes to make informed decisions about compensation, profitability, and growth.

“Happiness is not accounted for in Generally Accepted Accounting Principles. Neither is peace of mind, propensity for burnout, or the quality of your life.” – RJon Robins, author of Profit First for Lawyers

Before you can build a roadmap for the future, you need to know where you are today. Evelyn Aucoin, Financial Literacy & Strategy Expert from How To Manage a Small Law Firm, joins us to discuss understanding your starting point. Whether your goal is greater profitability, more time with family, or long-term financial security, meaningful progress begins with an honest assessment of your current reality.

Drawing from core financial literacy concepts found in Profit First for Lawyers, Evelyn explains why financial reports are not simply accounting documents. She introduces the seven key financial reports and explains how they help law firm owners understand where they are today so they can make better decisions about where they want to go.

One of the central themes of this episode is that success is personal. For some law firm owners, success may mean growing a multi-million-dollar firm. For others, it may mean working fewer hours, spending more time with family, or creating greater flexibility in their lives. Before measuring progress, law firm owners must first define what success looks like for them.

Once that destination is clear, financial reports can help answer an important question:

Are you currently on the path that will get you there?

Financial literacy is not an end goal. It is a tool that helps law firm owners make better decisions. If you are ready to take action on the concepts discussed in this episode, start here:

This is not a one-time set-it-and-forget-it exercise. The destination you choose today may need to change as your business and personal goals evolve. That’s why it is important to keep your hands on the steering wheel. While this may seem challenging at first, regular monitoring keeps you in tune with the direction your business is headed, allowing you to adjust for road hazards and stay on course.