In this episode, we have a candid conversation with Marie Drake who shares the story behind why she became a lawyer, her family law practice, and her “No B.S. Divorce” model. She also talks about how a colleague’s drastic transformation led Marie to attend a Live Quarterly Meeting and join How To MANAGE a Small Law Firm four years ago. Marie has embraced Profit First and found RJon’s win-win model works well within her law firm. She advises young lawyers to explore several specialties before selecting one practice area.

RJon talks about why being profitable professionally and personally is equally important as being profitable financially. He shares the story of “boat days” which produced invaluable business insight and personal satisfaction despite there being more lucrative ways to spend four days. RJon contends that the value he received far outweighed what he would have earned speaking on stages or hosting a workshop. Which illustrates his model of alignment between professional, personal, and financial success.

Oscar Ferenczi: Ep 28 Does Your Accountant Have An Entrepreneurial Mindset?

The Power of TED by David Emerald

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

In this revealing episode, RJon flips the script and calls out lawyers who may be sucky clients to their bookkeepers.

In Chapter 16 of the Profit First for Lawyers book, RJon compares the attributes of disengaged legal clients to how some lawyers treat their bookkeepers.

From showing up late (or not at all) to meetings and expecting their lawyers to read their minds to shirking responsibility or not participating meaningfully in their case. These clients can be the most challenging to work with due to their lack of commitment and attention. Typically these are the same clients who often do not get the best outcomes.

RJon challenges listeners to take a look at their actions with their bookkeeper. Are they attentive and responsive to their bookkeeper’s questions? Are they an active participant ensuring their bookkeeper has what they need to complete financial reports accurately? 

RJon reminds us that the purpose of bookkeeping is to provide a historical record for both tax purposes and to inform on strategic financial decisions going forward. So to avoid being your bookkeeper’s “sucky client” be proactive and clear in your communication. 

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

This candid episode tackles a difficult topic – many law firm owners are using their household income to subsidize their law firm’s business at the expense of their household finances.

During a recording session, Karli asked RJon for clarity about why some law firm owners use household money meant for children’s education or other family expenses to fund their business. RJon calls this practice of paying for business expenses with household money a form of embezzlement. This is a hot-button topic he has spoken about at local bar association events in the past which has gotten him uninvited to future events.

We hear from lawyer, Nikita Wolf who shares her struggles after opening a new law firm. The challenges of building a client base coupled with using savings and borrowing money from family to pay bills. She talks about how transitioning her business model with How To Manage A Small Law Firm and reading the Profit First for Lawyers book is already starting to transform her business.

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

Your future self will thank you!

Alejandra Leibovich, Co-Founder of How To MANAGE a Small Law Firm, explains how law firm owners can get off the ground and take flight to escape the “doctrine of sacrifice” mentality. She also recounts the early days of How To MANAGE and the origin of TAYE ASTUYA.

Running a profitable law firm requires a strategic bird’s eye view. Ale shares how struggling law firm owners stay bogged down in day-to-day tasks such as answering phones or cleaning toilets. This “ground level” thinking focuses on control and quality, but fails to effectively delegate those tasks, create systemized processes, or build in profitability.

“The only way for your law firm to grow is for it to help more people.”

RJon Robins

Profitability requires elevating your mindset. By taking flight you grow your firm’s capacity to serve more clients at a higher level. Plus, with increased profits, your law firm will attract rockstar team members to further your business goals.

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

Your future self will thank you!

In this episode of Profit First For Lawyers, RJon explains the revolutionary concept of categorizing overhead expenses as either “static” or “dynamic” to better control costs and increase opportunity for growth.

RJon goes into detail about the differences between Static Overhead and Dynamic Overhead. He explains Static Overhead as fixed costs like rent, utilities, and subscriptions. Dynamic Overhead expenses include marketing, staff training, and financial planning. While Static Overhead costs are necessary to conduct business, these types of overhead expenses do not directly boost growth or increase profits. On the other hand, Dynamic Overhead fuels expansion and increases growth opportunities.

To illustrate the difference, RJon shares a cautionary tale about a law firm with stalled growth. Upon investigating the firm’s tightly controlled marketing budget, it was revealed that a successful employee networking initiative delivering great ROI was sidelined by an overzealous controller. By capping the dynamic marketing initiative, the firm likely missed out on hundreds of thousands in profits.

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

Your future self will thank you!

Fear and self-doubt can prevent us from achieving our biggest dreams and reaching our fullest potential. In this special Halloween episode of the Profit First For Lawyers podcast, Karli and Raul discuss how to face fears, unmask ego, and breakthrough limiting beliefs.

Their conversation revolves around a clip from a Facebook Live in 2021 of RJon talking through an early draft of the Profit First For Lawyers book. In the clip, RJon challenges the assumption that running a highly profitable law firm requires extreme luck or privilege. He asserts that if instead of making excuses, struggling lawyers spent time with highly successful lawyers they would realize the only difference is the choices made – choices struggling lawyers can also make.

Tune into this episode of Profit First For Lawyers to discover how you can unmask the fears holding you back.

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

Your future self will thank you!

Listen to past episodes with Raul Longoria: Killing Your Ego | The Power of Boundaries

Resources mentioned:

Additional information on the Dunning-Kruger Effect can be found in the Killing Your Ego episode.

To learn more about Live Quarterly Meetings visit https://howtomanageasmalllawfirm.com

An overview of Total Owner Benefits (TOB). Looking beyond just salary to the full profit potential law firm owners can receive as outlined in Chapter 9 of the Profit First for Lawyers book.

RJon explores conventional vs. creative definitions of profit. He also tackles law firm owner pay as it relates to fair market salary for their work roles. He discourages inflated owner salary beyond what the firm would pay anyone else for the same job, as doing so reduces company profitability.

Attorney Andrea Shoup shares how she is implementing Profit First reporting and planning at her law firm with great results so far.

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

Your future self will thank you!

In this episode, we are joined by RJon’s personal accountant, Daniel Ferro to discuss perspectives on profitability. Daniel shares his journey from traditional accounting jobs to joining RJon’s fast-paced team at How to Manage a Small Law Firm. Daniel offers a glimpse of what it is like to work closely with RJon and the insights he has learned along the way.

Daniel explains how RJon taught him the win-win concept. Which states that every honest exchange is profitable for both parties involved. Karli shares her own discussions with RJon about the win-win mindset as well.

Karli and Daniel discuss what profitability means both professionally and personally. Daniel reveals he is using Profit First accounting principles in his personal life. Which shifts the conversation to prioritizing what matters most in business and life.

In a clip from chapter nine of the Profit First For Lawyers audiobook, RJon expands upon the possible answers to, “How profitable is your law firm?” A question with conventional and unconventional answers dependent on who is asking the question. The answers may surprise listeners.

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

Your future self will thank you!

We continue exploring how Generally Acceptable Accounting Principles (GAAP) was not meant for non-publicly traded companies like private law firms.

RJon reviews how GAAP was created by regulators to standardize publicly traded company accounting after the 1929 stock market crashes. He argues GAAP has nothing to do with maximizing private company profits. This is only one of the many reasons why law firm owners should take a closer look at their accounting practices.

RJon says GAAP treats profit like luck and lawyers who use GAAP leave their profit to chance. Yet many lawyers still allow bookkeepers and accountants to manage their firms’ accounting using GAAP. In an impassioned plea, RJon urges lawyers to liberate themselves from an accounting system that does not put their law firm’s profits first.

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

Your future self will thank you!

Denise Doonkeen returns to discuss how truthful yet kind communication, even when uncomfortable, leads to better outcomes in business and life.

We hear a behind-the-scenes clip of RJon coaching Karli in the studio. After a “flat” reading, he urges her to give him candid and honest feedback about his narration performance. He explains that hard truth is far kinder than being nice.

Denise shares a story from a previous employment about an uncomfortable talk with an employee. Her kind yet direct approach brought an underlying issue the employee was dealing with to light, which led to a solution.

Karli and Denise emphasize the value of a thoughtful delivery when dealing with issues directly. They also discuss the importance of being open, coachable, and lifelong learners. Which is something they have observed in RJon.

Listen to Denise in episode 12: Perception vs. Reality

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

Your future self will thank you!