Profit First for Lawyers

Team RJon | RJon Robins

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The Profit First for Lawyers podcast is the companion show to the book, Profit First for Lawyers by RJon Robins. The goal of the book and podcast are to empower lawyers with practical and actionable information to help them improve their lives by putting their family, their firm, and their Profits First.

1 day ago

How Profit First Actually Works

“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. Why Discipline Forces Creativity 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. Mentioned: Financial Literacy Series: Part 1: You’re Not Bad With Numbers Part 2: Understanding the Stages of a Law Firm’s Growth Part 3: Calculating Your Total Owner Benefits Part 4: What Is Your Normalized Salary? Chapter 8: Why Generally Accepted Accounting Principles (GAAP) Are Not Meant for You (pages 70-71 in the Profit First for Lawyers book) Email podcast@profitfirstforlawyers.com with subject: “Debt Ladder” for a future episode Connect Subscribe to the Profit First for Lawyers podcast Watch episodes on YouTube And most importantly, order your copy of Profit First for Lawyers today!

16 min
3 days ago

A Sale Is Not a Sale Until You Collect the Money

“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. Have the Hard Conversations 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: Attorney and staff accountability Client expectations The long-term financial health of the firm 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. Creating a Healthy Sustainable Business 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. Mentioned Law Firm Diagnostic by How To Manage a Small Law Firm Business Plan worksheet G.A.S. Calls resource Chapter 14: For When You Really Take Profits Seriously Connect Subscribe to the Profit First for Lawyers podcast Watch episodes on YouTube And most importantly, order your copy of Profit First for Lawyers today!

35 min
18 June

What Is Your Normalized Salary?

“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. What Is a Normalized Salary? 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. Why It Matters 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. Key Takeaways Normalized salary is based on the work you perform, not your title Every role inside your firm has a market value Understanding how you spend your time creates greater financial clarity Compensation for labor and compensation for ownership are not the same thing Financial literacy requires objective thinking, not emotional thinking 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 Make a list of every role you currently perform inside your firm. Estimate what it would cost to hire someone competent to perform each role. Determine the approximate percentage of time you spend in each role. Calculate a rough normalized salary based on those percentages. Compare your current compensation to the value of the work you are actually performing. 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. Mentioned Part 1: You’re Not Bad With Numbers Part 2: Understanding the Stages of a Law Firm’s Growth Part 3: Calculating Your Total Owner Benefits Chapter 9 of Profit First for Lawyers Connect Subscribe to the Profit First for Lawyers podcast Watch episodes on YouTube And most importantly, order your copy of Profit First for Lawyers today!

19 min
16 June

You Are Here: Know Your Starting Point

“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. Defining Success on Your Own Terms 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? Key Takeaways Financial reports provide visibility into the health of your business Success should be defined by your goals, not someone else’s expectations Total Owner Benefit offers a more complete picture of financial success Financial literacy creates confidence and clarity in decision-making Knowing where you are today is the first step toward reaching your goals 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: Action Steps Define what success looks like for you and your family. Review your current financial reports to understand where you are today. Identify the destination you are trying to reach. Determine which financial metrics will help you track progress toward your goals. Commit to building a regular habit of reviewing your numbers. 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. Mentioned Profit Leak Assessment Calculating Your Total Owner Benefits episode Seven Key Financial Reports (Chapters 13-15 of Profit First for Lawyers) Bookkeeping That Does Not Suck Connect Subscribe to the Profit First for Lawyers podcast Watch episodes on YouTube And most importantly, order your copy of Profit First for Lawyers today!

42 min
11 June

Calculating Your Total Owner Benefits

“There are three ways you’re going to get compensated from your business. One is W-2 Salary. Two is K-1 distributions. Three is other benefits.” – RJon Robins, author of Profit First for Lawyers How profitable is your law firm? The answer might be more complicated than what shows up on your P&L statement. In this third part of our seven-part financial literacy series, we revisit a topic from season one: Total Owner Benefits. A topic of such importance that it has an entire chapter devoted to it. Listen in as RJon takes a law firm owner through an exercise to calculate the true value they are receiving from their firm. Beyond the Bottom Line RJon poses a powerful question: Would you rather own Firm A (making $1M but working 70-hour weeks doing work you hate with no vacations) or Firm B (making $500K working 50 hours doing meaningful work with real time off?) Your banker might say Firm A is more profitable, but which would contribute to your family’s happiness more? The Real Math In the 2019 workshop, RJon shows how a business that appears to have a 20% profit margin actually delivers 38% in Total Owner Benefits when you account for all three components (W-2 Salary + K-1 distributions + Other benefits). The difference is dramatic and changes everything about how you evaluate your firm’s true profitability. Understanding Total Owner Benefits reveals the value your business is actually providing you with. Action Steps Follow along with your numbers during the exercise to discover your Total Owner Benefits Then ask yourself: What is my law firm actually giving back to my life? If you don’t like the answer, pick one small thing to change Next Time: Join us for Part 4 where RJon walks law firm owners through normalized salary calculations. This is an eye-opening episode you won’t want to miss. So be sure to subscribe to the Profit First for Lawyers podcast. Resources Mentioned Financial Literacy Series: Part 1 – You’re Not Bad with Numbers Part 2: Understanding the Stages of a Law Firm’s Growth Chapter 9: Total Owner Benefits (pages 73-87 in the Profit First for Lawyers book) Season 1: Total Owner Benefits episode Connect Subscribe to the Profit First for Lawyers podcast Watch episodes on YouTube And most importantly, order your copy of Profit First for Lawyers today!

18 min
9 June

A/R: It’s REALLY Worse Than You Think

“Accounts receivables are so much worse for a law firm than most lawyers understand or appreciate. So much worse.” – RJon Robins, author of Profit First for Lawyers In this episode, How To Manage a Small Law Firm CFO and CEO advisor, Etienne Hardre expands upon RJon’s clip from Chapter 14 about the devastating mathematics behind accounts receivable. The Devastating Mathematics Here is what really happens when Client A doesn’t pay their bill. You’ve already spent the money on marketing, sales, production, and overhead to serve them. When their bill goes unpaid, they’re not just skipping the 33% profit, they’re stiffing you on the entire bill. So what happens next? Now you need to cover marketing, sales, production, and overhead for Clients B, C, and D before you begin to see your first profit from working with all four clients. Here’s the breakdown for a theoretical $10,000 case/matter with a 33% profit: Client A did not pay their bill Clients B did pay their bill and their 33% profit goes to cover the costs you already spent on Client A Client C also paid their bill and their 33% profit covers the overhead from Client A Client D’s profit finally covers the profit you should have made from Client A. After four clients you’ve finally recovered what one client should have originally provided. This illustration makes is easy to see how Accounts Receivable is the silent profit killer that is crushing law firms nationwide. Is it any wonder that RJon put A/R in the Profit First for Lawyers book twice? Why Law Firms Struggle with A/R Most law firm owners hate looking at their aging A/R reports. Some have six-figures of A/R outstanding and are challenged to ask to be paid for the completed work. The mindset issue around asking for money compounds the problem. The fact is that A/R and Profit First work against each other. The more money trapped in A/R, the harder it becomes to take profits first. To combat the mindset issues, start implementing Profit First even with 1%. The urgency will force you to address your law firm’s accounts receivables. Take Action on Your A/R So, what’s a law firm owner with A/R to do? Stop the bleeding. Start with preventing new A/R from forming. Screen clients for ability to pay during marketing. Use retainer policies and implement “red rubber band” systems that stop work when payments are due. Adopt more frequent billing to top up retainers. Tackle existing A/R by starting with recent accounts receivables, be flexible with payment plans and discounts. Remember: Get creative because any A/R you collect is 100% profit since you’ve already paid all the associated costs. Your Action Steps: Implement a red rubber band policy to prevent new A/R Pull your A/R aging report and face reality Start collecting immediately, be creative when necessary Mentioned: Chapter 14 – Profit First for Lawyers book Podcast episode – A/R: The Profit-Eating Machine with Ed Gegan Connect Connect with Etienne Hardre at How To Manage a Small Law Firm by emailing help@howtomanage.com Subscribe to the Profit First for Lawyers podcast Watch episodes on YouTube Follow Profit First for Lawyers on social media: LinkedIn | Instagram | Facebook And most importantly, order your copy of Profit First for Lawyers today!

50 min
4 June

Understanding the Stages of a Law Firm’s Growth

“If we can develop good habits for you when your business is still in the first stage of growth, you’re going to bring those good habits with you into business maturity.” – RJon Robins, author of Profit First for Lawyers A growing business requires a growing owner. During a Q&A session in part two of our seven-part series, RJon explains why financial literacy does not carry the same weight at every stage of growth. In the earliest stages, the owner’s job is to “hustle, market, and sell.” New benchmarks require the owner to develop new skills, learn to hire, delegate, and build team productivity. Then as the business becomes more complex, financial literacy, systems, metrics, and accountability become increasingly important. The lesson is not simply that law firms grow in stages. It is that the owner must gain new skills and maturity to grow with the firm. Financial Literacy in Context Financial literacy is not equally important at every stage of growth. A growing business requires the owner to keep learning, adapting, and leading differently. Action Steps Identify which stage of growth best describes your firm today. Determine the most important priorities for that stage. Review the financial reports currently available. Commit to building one financial habit that will strengthen your understanding of the business over time. The goal is not to master every financial concept at once. The goal is to begin building the habits that will support your next stage of growth. Mentioned Part One: You’re Not Bad With Numbers Chapters 12-15 of Profit First for Lawyers The Seven Stages of Law Firm Growth Connect Subscribe to the Profit First for Lawyers podcast Watch episodes on YouTube And most importantly, order your copy of Profit First for Lawyers today!

30 min
2 June

Regaining Time

“We are going to break away from the dictionary’s limited definition of profit and profitable, which only account for financial profits.” – RJon Robins, author of Profit First for Lawyers For many law firm owners, profitability is measured by one thing: money. But what if profit gives you something even more valuable? Time. In this episode, Michigan estate planning attorney Rose Coonen shares how implementing Profit First accounting principles transformed not only her firm’s finances, but also how she spends her time, serves her clients, and shows up for her family. Redefining Profit RJon challenges the traditional definition of profit and introduces a broader perspective: profit can be personal and professional as well as financial. For Rose, that shift in understanding changed everything. Since implementing Profit First three years ago, she has built a strong financial foundation, gained the freedom to stop working with toxic clients, become more present with the families she serves, and grow a law firm that supports the life she wants to live. Today, her law firm is a family affair with her husband and daughter working alongside her as the business continues to grow and serve her community. What started as a desire for greater financial stability ultimately became a way to regain control of her time. Key Takeaways Profit is about more than money Financial profit creates personal and professional opportunities Regaining your time starts with building a stronger financial foundation A profitable law firm gives you the choice of working with your ideal clients Growth allows for creative ideas to serve more clients, support more team members, and make a greater impact in your community. Sometimes the most meaningful result isn’t found on a financial statement. It is the ability to spend more time with family, build a business that aligns with your values, and make a greater impact in your community. Because the most valuable form of profit may be time itself Mentioned Plan Like You Won’t Be Here Tomorrow Connect and Engage Connect directly with Rose Coonen: https://coonen-law.com Subscribe to the Profit First for Lawyers podcast Watch episodes on YouTube Follow Profit First For Lawyers on social media: LinkedIn | Instagram | Facebook And most importantly, order your copy of Profit First for Lawyers today!

30 min

The Profit First for Lawyers podcast is the companion show to the book, Profit First for Lawyers by RJon Robins. The goal of the book and podcast are to empower lawyers with practical and actionable information to help them improve their lives by putting their family, their firm, and their Profits First.

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Team RJon | RJon Robins
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2023 - 2026
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96
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Explicit
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©2023-2025, Profit First For Lawyers - RJon Robins, All Rights Reserved
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