Knowing your numbers gives you great power to make smart business decisions. It’s one of the ways you breakthrough to BIG SUCCESS! In my experience, only 5% of solo and small firm attorneys know their profit margin. Do you?
As you look to create, build, or transform your law firm, start first by identifying clearly the life you want. The key to happiness and fulfillment is to pinpoint that ideal life and then build your law firm to serve that life – not the other way around.
Too many lawyers have it backwards, selling their soul to the firm, racking up hours without the results they want because they blindly threw themselves in without thinking through what they wanted to create. You own the firm; the goal is to not let the firm own you.
Law firm financial analysis does not need to be hard – and it’s necessary. When you know your numbers and can do the math, law firm decision making transforms from being a guessing game to being strategic decision making. Strong decisions propel you forward toward your goal of creating the law firm – and life – you want.
Today, we’ll walk through how…..
On a cold Tuesday afternoon, just three years after I graduated from law school, I heard code red called in the ER. The code was for me. I was 30 seconds from death: veins collapsed, no blood pressure, 30 pounds under weight, metabolic acidosis prevailed, 32 ounces of blood lost daily, and no ability to sit upright or walk. I was 28 years old and knew nothing about how my reactions cause outcomes. Not knowing almost killed me. Years of stress and anger had taken their toll…..
Some of us grew up in the 70s, captivated by the heroic adventures of The Six Million Dollar Man, when a million dollars was an amazingly large amount of money – unattainable for most. Now we scoff at a million, knowing it’s not enough for retirement and successful attorneys don’t pull in a million dollars over their lifetime; they pull in a million dollars in one year. Even solo and small firm practitioners are generating a million dollars of revenue.
If you’re thinking, “BS! Only big firms make over a million dollars,” you’re mistaken. It’s completely doable. It’s a lot easier these days and you don’t create a million by yourself. It takes knowing your numbers, a team, a guide, the proper mindset, and the million dollar law firm formula.
Business owners, or I should say, successful business owners, know and track their key performance indicators (KPIs). At just a glance, successful business owners can see what’s working, what’s not working, and where to adjust.
As a solo practitioner, you’re a business owner and CEO, right? Of course you are. So, are you tracking these important measurements?