TIME is the 4 letter curse word of the legal industry. There is nobody more strapped for time than the parent law firm owner. If you feel like you do not have time to get anything done then this episode is for you. Moshe discusses his own experience as a hands-on parent and shares some tips, strategies and new ways to see things to help conquer this ugly beast.
What is the single most important action you can take to propel your law firm to greater heights? The answer is goal setting. In this episode, Moshe explains why quarterly goal setting is so important and why the S.M.A.R.T. Goal method is not the best method to use. Learn how to set Good, Better and Best goals. Goals are not just for you the business owner. Learn how to set team member goals and have each team member be responsible for their own goals.
Great leaders and great companies have a rally cry that people can get behind. A decade ago Simon Sinek with his book Start with Why explained in depth why this is so important for your business. Getting clear on this today can accelerate your firm’s growth and success.
Crushing chaos, expanding your free time and generating more money in your firm are all some of the daily superhero activities of Allison Williams. Known as the Law Firm Mentor, Allison has built and continues to run a very successful law firm and now teaches others how to achieve amazing results.
We’re all here because of our dreams. We dreamed of doing better, it’s why we became entrepreneurs.
The question is, have you dreamt properly? If we dream properly then our chances of succeeding are significantly higher.
The Dreaming Recipe
1. Take 15 minutes to sit by yourself and close your eyes. Once your mind has
calmed down think about
Once you have the answers to these questions, put them together to form your dream.
2. Now you need to envision yourself achieving your dream.
If possible experience the moment.
For example, if it’s a specific car you want, go take that car for a test drive. Savor the feeling of driving that car. Pay attention to the feel of the leather seats and the new car
In episode 16 we learned the basics of the Profit First system and now we will do a Profit First deep dive. With these steps you’ll learn how to manage your money to create a healthy business.
One Time Setup
When you first start there are three steps to setting up the Profit First system and you only have to do it once.
Set up five bank accounts.
You and/or your accountant will most likely have some resistance to this. You may be worried about:
Don’t worry about the cost because there are different ways you can get the fees waived.
Change. You will have resistance because this is a big change, but don’t skip this step because it’s the whole point of this system.
The five accounts are split into:
By creating a great client experience, your clients will become your best salespeople.
When clients are happy with their experience, they will on their own compliment you and your firm to all their friends. Not only that, when they hear about someone with a similar issue that they had, your name will be the first thing out of their mouth.
To accomplish that we need a well structured process for our clients, but how do we go about doing that?
Creating a Stellar Client Experience
There are five steps to take to make the perfect client experience.
1. Personal Conversation
2. Aligning Your Values
3. Your History and Mission
Is your firm struggling with cash? Are you not bringing home enough money?
If the answer is yes, then it’s time to implement the Profit First system (from the book Profit First by Mike Michalowicz).
Owner’s Pay v.s. Profit
Before we get into anything let’s define Owner’s Pay and Profit.
Owner’s Pay is your salary for working.
Profit is what the firm made after all expenses were paid.
What is causing this cash problem?
The root of the problem is human nature.
Mike Michalowicz likes to call what we do “bank balanced accounting” and that is where we naturally look at our bank accounts each morning and one of three things will happen:
Our lives revolve around money and we don’t always make the right decisions about how to handle our money.
There was a time many years ago that I did not handle my money correctly and I went through bankruptcy. All my money was going to child support and religious school tuition (a part of the legalized divorce agreement), so to survive I took out loans. In the end I couldn’t pay them off and I couldn’t get more loans, so I went through bankruptcy.
There was no way I would allow that to happen again. I analyzed my situation and where I went wrong, so I wouldn’t make the same mistake twice. I want to share my knowledge of debt with you, so that you won’t make the same mistakes I did.
What makes debt bad?
Do your taxes pile up to impossible numbers? Are you not taking home the amount of money you should be?
Why is that?
There are a lot of things that contribute to this, for example:
Your Top line Number
Everyone has a top line number they want their firm to achieve. You’ll aim for that number, but that number on its own is irrelevant. You have all your expenses you need to take into consideration.
Revenue v.s. Profit
The difference between these two is that
Revenue = the amount of money you make before any expenses
Profit = the money you take home after all expenses are paid
So, the revenue number (like your top line number) is irrelevant. All it means is that you’re getting clients. If you’re expenses are twice the amount of your revenue, then that’s a problem.
What you need to be looking at is your...