In this eye-opening episode on the topic of accounts receivable, we are joined by financial expert Darren Wurz. Darren is the managing partner at Wurz Financial Services and author of “The Lawyer Millionaire.” He shares practical and actionable insights on managing accounts receivable (A/R) in law firms.

To find out why some law firm owners have A/R, Darren explains the psychology behind money, why it’s often a taboo topic, and how to reset our money mindset. He encourages law firm owners to take action to properly manage A/R to banish lost opportunity cost and embrace law firm growth and profitability.

“If there is A/R that’s sitting out there, it needs to be part of your workflow. It needs to be a priority on your schedule. So schedule time during your week either you or members of your team are going to call or going to follow up with those clients and try to get that money collected.” – Darren Wurz

– Episode 61: The Lawyer Millionaire

– Darren Wurz, Wurz Financial Services / The Lawyer Millionaire

– RJon clip from chapter 13, page 120 of the Profit First for Lawyers book

– Profit First for Lawyers curated resource page

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Profitable law firm owners track and analyze their SKUs and in this episode we learn why. SKUs (Stock Keeping Units) in the context of law firms refer to an accounting of all the time that goes into producing a specific legal service. Dawn Mobley, Practice Management Advisor, COO at How To MANAGE a Small Law Firm shares her expertise on creating and optimizing SKUs to boost law firm efficiency and profitability.

Dawn explains how using the SKU Calculator simplifies the often intimidating process of SKU analysis into a manageable process for law firm owners. She shares real-world examples of how detailing and tracking SKUs leads to a more profitable law firm.

“Some of the benefits of using the SKU Calculator and doing your SKUs is that it clearly shows you what the cost is of producing whatever service you’re providing.” – Dawn Mobley

In this segment, Dawn shares an audiobook clip of her favorite part of the Profit First for Lawyers book. She focuses on Chapter 5, specifically Production, the third of The 7 Main Parts of Every Successful Law Firm. Dawn discusses the importance of documented systems and procedures for every role and task in a law firm. Additionally, she reflects on a profitable action she has taken over the last year inspired by RJon’s teachings. An impactful use case for how these concepts can be personally beneficial.

– Episodes featuring Production: Ep 13 & Ep 64

– SKU Calculator from the Profit First for Lawyers curated resource page

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In this enlightening and entertaining episode, we look into the concept of Cost of Goods Sold (COGS) and its importance in law firm profitability. COGS, the direct cost associated with producing your law firm’s services, is a key metric that can reveal the true profitability of your offerings. For readers of the Profit First for Lawyers book, this episode draws from Chapter 15: A Much Deeper Dive Into The Drivers Of Profit Than Most Struggling Law Firm Owners Are Ever Willing To Take.

To drive home the simplicity of understanding COGS, RJon employed a unique approach: he taught the concept to a group of teenagers. These teens then presented it on stage to their lawyer parents at a How To MANAGE a Small Law Firm Live Quarterly Meeting. This innovative method not only simplifies COGS but also demonstrates why understanding this metric is crucial for law firm owners to identify their most profitable services and make informed decisions on their offerings.

Ready to transform your law firm’s profitability? Tune in to learn how knowing your COGS could be the boost your practice needs!

“You cannot lose money on your gross profits and think you’re going to make it up on volume, notwithstanding the fact that lots of lawyers try to do that. Eventually you got to pay the piper.” – RJon Robins

–  Chapter 15 of Profit First for Lawyers by RJon Robins

–  Episode 67: Labor Cost Ratio: Unlocking Law Firm Profitability with Greg Crabtree

–  Profit First for Lawyers curated resources page

–  Leave us a review on Apple, Spotify, Audible or wherever you listen to your favorite podcasts

–  Buy your copy of Profit First for Lawyers

This is an eye-opening episode on a critical yet often uncomfortable topic: the role of ego in law firm management. Featuring exclusive content from RJon Robins’ audiobook recording sessions, this episode serves as a stark reminder of the importance of facing financial facts head-on. With an emphasis on the need to confront realities, no matter how unpleasant they may seem. By sharing anonymous real-world examples and offering practical advice, RJon provides a wake-up call for law firm owners to make decisions based on data rather than ego.

“Truth is reality. Reality is truth. Truth does not depend on us to approve of it…Truth doesn’t depend on us to like it. Truth doesn’t depend on us to agree with it. Truth is what truth is. It is just reality.” – RJon Robins

– Ep 45: Secrets To Bookkeeping That Does Not Suck with Sherri Mansell

– Profit First for Lawyers curated resource page

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–  Buy your copy of Profit First for Lawyers

In the conclusion to our three-part series on crucial financial reports, we welcome back financial expert and author Greg Crabtree. We pick up right where we left off with an explanation of labor efficiency ratios and their critical role in profitability. Greg talks about the economic shift from what he calls the “Participation Trophy Economy” of the last 20 years to the current “Street Fighter Economy,” and the need for competitive businesses to adapt their strategies.

Greg breaks down complex financial concepts into actionable insights for law firm owners. His practical advice on implementing and interpreting labor efficiency ratios provides a roadmap for increased productivity and sustainable growth even in challenging economic times.

“Entrepreneurs think they can grow their way out of lack of profit. And we call that, stage one of denial. So you got to fix it before you can grow it.” – Greg Crabtree

– Labor Cost Ratio Episode 67 with Greg Crabtree

– ‘Simple Numbers, Straight Talk, Big Profits’ by Greg Crabtree

– Ep 63: How To Hire (And Keep) A Superstar Staff with Nichole Hanscom

– Profit First for Lawyers curated resource page: Labor Cost Ratio worksheet

– Leave us a review on Apple, Spotify, Audible or wherever you listen to your favorite podcasts

–  Buy your copy of Profit First for Lawyers

In this informative and engaging episode, we continue our three-part series on crucial financial reports, focusing on labor cost ratio – a vital metric that RJon Robins identifies as a key factor in building and maintaining million-dollar law firms.

Greg Crabtree, author of ‘Simple Numbers, Straight Talk, Big Profits,’ dispels accounting myths and reveals the simple truth behind labor and profit. By breaking down complex financial concepts, Greg makes them accessible to law firm owners at every stage of their firm’s growth, regardless of current revenue.

“Labor is the only cost that comes to work every day with an attitude. And it’s got some good days and it’s got some bad days. And I’ve got to find a way to get it to perform consistently. That is in its best interest and my best interest. And then we both win.” – Greg Crabtree

– ‘Simple Numbers, Straight Talk, Big Profits’ by Greg Crabtree

– Ep 45: Learning “bookkeeper-ese” in Secrets To Bookkeeping That Does Not Suck with Sherri Mansell

– Profit First for Lawyers curated resource page: Labor Cost Ratio worksheet

– Leave us a review on Apple, Spotify, Audible or wherever you listen to your favorite podcasts

–  Buy your copy of Profit First for Lawyers

We kick off the first of a three-part series on crucial financial reports that can transform a law firm’s profitability from RJon’s boat, “The Office”. This episode demystifies financial controls which many lawyers unnecessarily over-complicate. Instead, we focus on the four reports every law firm owner should look at, and most importantly understand, each month.

Set against the backdrop of Miami’s scenic coastline and an approaching storm, RJon offers a uniquely engaging perspective on mastering law firm finances. His straight-forward, no-nonsense style breaks down the value of monthly financial reports without resorting to complex math. Lean in and listen as RJon makes sense of the data your bookkeeper sends each month in a way that’s both accessible and actionable.

“If I only had one financial report to look at every month, I would look at my Budget Variance Report. “

– RJon Robins

– Page 111 in the Profit First for Lawyers book

– Ep 45: Secrets To Bookkeeping That Does Not Suck with Sherri Mansell

– Profit First for Lawyers curated resource page

– Leave us a review on Apple, Spotify, Audible or wherever you listen to your favorite podcasts

–  Buy your copy of Profit First for Lawyers

In this episode we hear from Brad and Sarah Phillips about their journey from struggling solo practitioners to successful law firm owners. They offer a candid look at the challenges they faced and the transformative solutions they discovered after implementing strategies from How To MANAGE a Small Law Firm.

With over a decade of experience running their law firm, the Phillips found themselves at a crossroads, questioning whether to keep their doors open. Their story takes an inspiring turn as they reveal how implementing systems and processes, along with a crucial mindset shift, led to significant increases in their business.

“Happier attorneys don’t just make more money, but we’re also better attorneys for our clients because we’re happier.” – Sarah Phillips

We not only hear the highlights of these professional moments, but also learn how these changes improved their quality of life. This demonstrates the direct correlation between personal satisfaction and financial success in law firm management. This episode showcases the profound truth behind one of RJon’s famous sayings, “Happy Lawyers Make More Money”.

– Brad and Sarah in Bonus Ep: Law Firm Pitfalls and Solutions 

– Phillips Welcome Packet on the Profit First for Lawyers curated resource page

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In this episode we hear RJon talk about an often overlooked yet critical aspect of running a successful law firm: Systems, Processes, and Procedures. If you previously found episode 13 helpful, you are in for a real treat as RJon expands upon the concept of the 3rd part of the 7 Main Parts of Every Successful Law Firm: Production. This episode builds upon that foundation offering a more in-depth look at why developing robust systems is the key to creating a law firm that can run efficiently without constant owner intervention.

“Your systems don’t need to be perfect. If you wait till your systems are perfect, your systems will be useless.” – RJon Robins

– Page 34 & Ep 13: The 7 Main Parts of Every Successful Law Firm: PRODUCTION

– Profit First for Lawyers curated resource page

– Leave us a review on Apple, Spotify, Audible or wherever you listen to your favorite podcasts

–  Buy your copy of Profit First for Lawyers

In this episode we look at the critical aspects of building and retaining a superstar staff for your law firm.  Nichole Hanscom, Director of Special Projects at How To MANAGE a Small Law Firm makes a return visit to the show. Nichole, drawing from her extensive experience, shares invaluable insights on recruiting top talent, implementing effective onboarding processes, and developing essential leadership skills. She challenges law firm owners to rethink their hiring strategies, the long-term benefits of hiring experienced attorneys, and the power of specialization.

This episode offers a roadmap for transforming your law firm into an A-plus business that attracts and retains A-plus talent. Whether you’re struggling with high turnover or looking to take your team to the next level, Nichole’s wisdom and actionable tips will help you build a thriving, profitable law practice.

If you want A-plus employees, you have to start building an A-plus business. You have to become an A-plus leader.

– Ep 53 with Nichole Hanscom: Stages of Law Firm’s Growth

– Profit First for Lawyers curated resource page

– Leave us a review on Apple, Spotify, Audible or wherever you listen to your favorite podcasts

–  Buy your copy of Profit First for Lawyers