4 Books To Create Consistent, Sustainable Profit in Your Law Firm (Ep.147)

Written By Adedayo Adekunle

When you think of ethics in law firm management, your first thought is probably about honesty in billing or client representation. But as I discuss on this episode of the podcast, there’s an even bigger ethical failure at the root of countless firm struggles: unprofitability.

Profitability isn’t a dirty word. It’s not something to apologize for. In fact, as a law firm owner, treating profitability as your highest ethical responsibility might be the most important leadership decision you make. If you want to provide security for your team, long-term value for your clients, and the freedom you envisioned when launching your practice—it all starts with creating reliable, sustainable profits.

That’s why this year, our theme is Profit on Purpose. We’re diving deep into profitability not just as a financial metric, but as a foundational pillar of responsible, ethical leadership.

4 Must-Read Books for Lasting Law Firm Profitability

In our 2026 Lawyer Millionaire Book Tour, each quarter we’re focusing on one game-changing book. Here’s our roadmap for the year:

  1. Profit First by Mike Michalowicz
    Bring structure and intention to your financial systems. Even if you know about Profit First, revisiting it will help you discover more gold in the method and implement it more thoroughly.

  2. Simple Numbers by Greg Crabtree
    Take your profitability to the next level using metrics and science. Learn the forces of cash flow and how to manage them proactively especially important for firms bringing in $1M+ in revenue.

  3. The Great Game of Business by Jack Stack
    Profit isn’t a solo effort. It’s a team sport. This book introduces “open book management,” so your whole team is engaged and invested in driving profit together.

  4. The Road Less Stupid by Keith Cunningham
    Even successful firms lose millions to what Cunningham calls “the stupid tax”, avoidable mistakes and poor decisions. This book provides practical, often contrarian advice to protect your profit margin from unforced errors.

Each book is paired with a live monthly masterclass in the Lawyer Millionaire community, where we dig deep into applying these lessons to your practice. You’ll get templates, resources, and the encouragement of a community of ambitious, caring law firm owners.

Resources:

 

Connect with Darren Wurz:

Transcript:

Darren Wurz [00:00:00]:

The biggest ethical failure in most law firms isn't over billing. It's unprofitability. I'm glad that you are here today with me. I've got some fun stuff to discuss with you. You know, focusing on profitability has gotten a bad rap. It's not unethical, and it's not greedy, and it's definitely not something that you apologize for. In fact, profitability actually might be your highest ethical responsibility as the steward of your law firm. And today I'm going to share with you why that is and give you the four books that we're reading this year and the big messages that they have for us on how we can drive more consistent, sustainable, reliable profitability in law firms.

Darren Wurz [00:00:51]:

So this year in the lawyer millionaire community, as you have probably already figured out, we're singly focused on this one theme. Helping you drive profit on purpose. Revenue growth gets all the glory. But you know, revenue growth is really pointless without profitability. So many law firm coaches are out there pushing law firm owners to grow at all costs. 10x your revenue. Build an eight figure law firm. Well, eight figures of what? Eight figures of revenue I don't give a shit about.

Darren Wurz [00:01:27]:

At the end of the day, it's profitability that matters. You fly across the country to go to these conferences, you get all pumped up about setting a big goal and then what happens? You get home and the rubber meets the road. You pour money into digital ad spend, new flashy billboards, more consultants, software tools to wow and dazzle, new hires for all the new growth that you're going to get. And what do you get at the end of the day? A bunch of expenses that suck you dry. You're exhausted, Cash is tighter than ever, and you're not better off. Have you ever felt that way? Am I hitting a nerve? That's not success, my friend. That's expensive chaos. And I'm here to save you from it all.

Darren Wurz [00:02:21]:

Greater revenue without greater profitability is just greater headache. You know, they should put that on a bumper sticker. Profit, especially today, is under a unique new pressure. In the current age of AI, how many law firm owners went out last year and spent tens of thousands of dollars on the latest AI tools or AI ads that promised to solve all of their problems and then realized many of these investments were a total waste. To make matters even worse, most firms aren't even tracking profitability metrics on a consistent basis beyond headline revenue, leaving them completely unaware of what is draining their profit. You know, a healthy law firm should expect a profit margin Of. Of somewhere in the range of 25 to 40%. Are you there? Do you even know how? If you're close.

Darren Wurz [00:03:19]:

Every year, law firm owners quietly shut their doors. Not because they weren't good lawyers, but because the business didn't work. And that's why this is such an important conversation. Others don't close. They just slowly bleed. And I talk with these law firm owners every day. Razor thin margins, endless stress, deferred retirement, burnout disguised as success. Meanwhile, their peers in big law are earning 750,000 or more with bonuses.

Darren Wurz [00:03:54]:

Not because they're better lawyers, but because they operate profitable systems. And here's the truth that no one wants to say out loud. You don't have the same energy you did 20 years ago, my friend. The grind costs more now. And that someday, is now closer than you think. Are you ready for something different? Let's draw a line in the sand this year and make 2026 your year. Let's declare it. This is the year of profitability.

Darren Wurz [00:04:27]:

2026 is the year of profitability. It's the year that you are going to build profit purpose. And so this year, our theme is Profit on Purpose. Because profit doesn't happen accidentally. It requires planning, structure, and most of all, leadership. And that is why I have become so passionate about this subject. Because profit isn't just about making more money. It's about leadership.

Darren Wurz [00:05:02]:

So throughout the course of this year, we're going to be reading four books within the Lawyer Millionaire community. Our book tour is centered on this theme. So it's the 2026 Lawyer Millionaire book Tour, Profit on Purpose. And each quarter, we're going to dive into a specific book that's aligned with this theme. At the same time, on every single month, we're going to be hosting monthly masterclasses to really dig in deep to these concepts. You won't want to miss these events. So come to the event. You'll be able to learn about what's in the book, and not just what's in the book, but how you apply what's in the book to your business.

Darren Wurz [00:05:46]:

And we're going to give you templates. We're going to give you all kinds of good stuff. This year is going to rock, my friend. It's going to be fantastic. Okay, so each quarter, one book a monthly masterclass where we dive in deep. You'll also get a great opportunity to network as well with other law firm owners just like you, who are facing the same issues. So what are the books that we're going to read this year? Well, here they are in Q1, first quarter, kicking it off in January because profit doesn't happen on accident and you need a system. We're going to kick it off with Profit first by Mike Michalowicz.

Darren Wurz [00:06:26]:

And our theme for the first quarter is Profit Systems. Now, you may have read Profit first before, you may be familiar with Profit First. You may even be implementing Profit first in your law practice. But even if, even if you are, and even if you're familiar with the concept, it's a great time to dust that book off and get back into it because there's a lot more that Mike has to share with us beyond just the subdivision of bank accounts and percentages. There's a lot more gold that we'll uncover in that system and in making that system effective. Now, maybe you've heard of Profit first, but you've never implemented it and you thought it's a good idea and maybe, maybe you're half assing it a little bit, right? You got a sum of the system set up. Well, you're not gonna experience the full benefits of the Profit first system unless you really dive in, my friend. So we're gonna dive into that one first.

Darren Wurz [00:07:28]:

It's a great way to kick it off, especially because it sets the tone and the theme, which is that we need to make profit a priority. Okay, moving on to the second quarter in Q2, we're going to be talking about profit science. The fact that there is the idea that there's a scientific and mathematic way to ensure a highly profitable business. And yeah, maybe you've delegated this to a bookkeeper or an accounting firm or maybe a fractional cfo, but you need to know the numbers. And so in second quarter, we're going to be reading so Simple Numbers by Greg Crabtree, a great follow up to Profit First. We're going to be diving into the four forces of cash flow and how to make cash flow work really, really effectively in your law practice. Profit first is great as a starting point. Simple Numbers takes it to the next level and it's going to be extremely applicable to you.

Darren Wurz [00:08:29]:

If you're running, you know, a decent sized law practice, you have multiple employees, you, you're doing over a million in revenue. This is really a book that you want to master. Okay? So you may be familiar with those two books, you may even have read those two books. But even if you have great to dust them off now, we're going to go into a little bit, maybe unfamiliar territory in the second half of the year. In Q3, third quarter. Because profit is not just about you. Oh, okay. I'm going to flip the script here a little bit.

Darren Wurz [00:09:01]:

Profit is a team sport. Yeah, that's right. Profit isn't something that you hide and don't disclose. It's a shared effort. And so this book, you're going to love it. When the firm is profitable, we all win. And so we're going to be reading the Great Game of Business by jack stack in Q3, and our theme for the third quarter will be profit together. And so we're going to be talking about how.

Darren Wurz [00:09:31]:

How do you get the entire team involved in driving higher profitability? Ooh. And a concept called open book management. Opening up the books, letting everybody know what the profit margin is and incentivizing the team to grow the profit margin. Ah, interesting ideas. You know, so many law firms are run like black boxes. This is really going to change your thinking now. We're going to bring it home. We're going to bring it on home with a great home run in Q4, because, you know, even if you have great systems and you know the science and you've got a great team that's, that's really focused on driving profitability.

Darren Wurz [00:10:14]:

You know what? We as business owners are often enemy number one when it comes to our businesses profitability. We pay a cost for our dumb decisions, which this author calls the stupid tax. And so in Q4, we're going to be reading the Road Less Stupid, Advice from the Chairman of the Board by Keith Cunningham. And in the fourth quarter, our theme will be profit protected. You're going to love this book. Jack has just a lot of great information. This book is not meant to be read, you know, like straight through. It's meant to really just be a guide to go and pick different sections.

Darren Wurz [00:10:57]:

Each chapter kind of stands alone. He picks a topic and he dissects it and he's got. He's got some gold in there. You're going to really love it. And he has a very contrarian view on some things. So it's really going to challenge your thinking and help you as a business owner to make smarter, wiser, more grounded decisions. You're going to love it. Okay, so there it is, folks.

Darren Wurz [00:11:22]:

There's our four books. Profit First, Simple Numbers, the Great Game of Business, and the Road Less Stupid. It's going to be a fantastic year. I encourage you, go buy these books right now and dive in. You don't have to wait for us to get there. Let's go. And then once you have, you've Dived in. Go ahead and join us in the Lawyer Millionaire community where we're going to be hosting this book tour and you'll be able to register for all of our masterclass events and get access to all of our great resources and templates that we're going to be building throughout the year.

Darren Wurz [00:11:55]:

By the way, the link to join the Lawyer Millionaire community and it's free, by the way, is in the show notes. Now let's go a little deeper. And I want to address something that is probably the biggest misconception that maybe is out there about profit. You know, maybe some of you are thinking, is it really fair for me as the owner to take home 25 to 30% of my firm's revenue? Maybe you have some shame about opening the books and sharing the numbers with the team and letting them know just how much money you're making. Isn't all this focus on profit a little bit greedy? Maybe unethical, or at the very least, kind of off putting? My friend, this belief is common and it's also wrong. Let me explain why you're not running a charity. And if you are, well, great, Close up shop and form a 501C3 and do it for real. But every day I encounter law firm owners who try, who almost sabotage their, who do sabotage their own profitability.

Darren Wurz [00:13:03]:

They refuse to charge what they're worth. They refuse to maximize profitability. They stay stuck in a small mindset as if they are running a charity. Let me tell you something. Profit is about not greed or making more money necessarily, although it is. But at its core, profit is about the sustainability of your business. You need a healthy profit margin to weather the bumps in the road. You need to be making a lot of money because the responsibility of the business is on your shoulders.

Darren Wurz [00:13:41]:

And by the way, it's a big responsibility. At the core, profitability is your responsibility. It's your responsibility not just to yourself, but to your team and to your clients. It's the duty of care that you owe. It's your fiduciary responsibility. Your team members, livelihoods are in your hands. That's a big responsibility. You want to create a business.

Darren Wurz [00:14:06]:

You know, one of the greatest joys I have as a business owner is to be able to create a business where my employees can work, can earn a great living and can raise their families. You know, a place where they can, they can depend on for their livelihoods, to support their families, to achieve their dreams, to, to be able to retire one day. We're creating millionaires. You're creating Millionaires in your business, your employees, that should be. That should be something that you are thinking about and focusing on because it's true. Your team members depend on you. And I want to create a business. I don't know about you, but I want to create a business where my employees can feel safe and stable and like their jobs aren't at jeopardy just because we have a bad quarter.

Darren Wurz [00:14:55]:

Also, let's talk about your clients. Your clients want to work with a firm that's healthy. Yeah. You know, there are a lot of tire kickers around there, around. And there are a lot of people shopping for the lowest price, but actually there are people who want to not be charged the lowest price. There are clients who want to work with a firm knowing that it's healthy, knowing that it has healthy profit margins, knowing that it's run well, knowing that it's not going to just maybe close up shop tomorrow, knowing that it's going to be a sustainable business that's going to be around a long time. And lastly, profit is about leadership. If your firm isn't profitable or struggles with profitability, what does that say about you as a leader? Ouch.

Darren Wurz [00:15:45]:

Well, the good news is leadership can be learned. And you may not yet have the skills that have gotten you where you need to go. And that's okay, because these are all things that we need to learn. And if this has been your struggle so far, 2026 is your year. It's time, my friend, to step into the leadership shoes and that you were destined to fill. So here's my assignment for you. I want you to make profit a priority in 2026. Sometime this week, I want you to.

Darren Wurz [00:16:23]:

I want you to find a place where you can sit quietly away from distractions. Maybe a coffee shop, or if that's hard for you to focus, maybe the library. I actually really like the library for business planning sessions. It's weird, but I do okay. Find a quiet place. Sit down with a pen and paper, write down your expected revenue. Stop with all these pie in the sky goals about, you know, 20 Xing, 100, Xing your business and blah, blah, blah. What do you reasonably expect you can hit with revenue? What do you reasonably expect you can bring in in terms of new clients based on your track record? Now, set a clear profit margin.

Darren Wurz [00:17:06]:

Target. Set a target for profit. And if you want to take this a step even further, open the books, bring the team into the conversation, tell them, this is where we're going and I need your help in getting there. And by the way, we'll all win because I'll be able to pay you more. And you might even be able to develop some kind of incentive program that is aligned with your profitability goals. And if you really, really want to make profit a priority in 2026, join us. Join us, my friend, for the Profit On Purpose book tour inside the Lawyer Millionaire community. The link is in the show notes.

Darren Wurz [00:17:52]:

Each quarter we're going to be reading one of these great books that I've mentioned. I Along with our books, we'll be hosting monthly masterclass sessions to dive deeper into the book's topics and give you practical ways to apply the lessons of profitability to your practice. Not only that, you'll get a fantastic opportunity to connect with other like minded law firm owners from across the country. You must be a member to join, but membership is free. So what are you waiting for? Go check it out now. Well, that's it for today, my friend. I wish you a very happy new year And I hope 2026 really is your best year yet. And we want to make we want to help you make it happen, my friend.

Darren Wurz [00:18:41]:

All right, now remember, the ultimate form of wealth is what? It's freedom. I'm your host, Darren Wurz. This is the Lawyer Millionaire and I'll see you inside the community.

Adedayo Adekunle
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