Your revenue is up. Your reports are clean. And you still cannot say, with a straight face, how much your firm actually made last year.
That is not a bookkeeping problem. It is a measurement problem. Most law firm owners track the wrong numbers, and the right ones were never taught in law school.
In this masterclass, Darren Wurz, CFP®, founder of The Lawyer Millionaire®, walks through the four numbers from Greg Crabtree’s Simple Numbers that tell you everything you need to know about your firm’s financial health, and almost nothing you do not.
The four numbers:
Market-based salary – What you should be paying yourself before you can call a single dollar profit, and how underpaying yourself hides the truth about your firm
Pre-tax profit – The only profit figure that matters, and why 10% is not success. It is survival. 15% is your real target.
Salary cap – The labor discipline that tells you whether your team is producing, and when the next hire will pay for itself
Core capital – The cash reserve that separates a firm that can weather a slow quarter from one that lives on a line of credit
Whether you are a solo practitioner or run a 10-attorney firm, this is the starting point. You cannot fix what you cannot measure.
This is Part 1 of the Q2 Profit on Purpose series. Part 2 covers the six disciplines of strong cash flow. Part 3 covers how to scale without losing profit. Links below.
📞 WORK WITH ME
Are you a law firm owner ready to turn your firm’s success into personal wealth? Book a free, no-pressure strategy call: https://www.lawyermillionaire.com/strategy
📊 WHAT IS YOUR FIRM WORTH?
Get a free estimate of your law firm’s value: https://audit.lawyermillionaire.com/firm-value
📘 GET THE BOOK
The Lawyer Millionaire (American Bar Association), the complete guide for attorneys on maximizing wealth, minimizing taxes, and retiring with confidence: https://www.lawyermillionaire.com/the-lawyer-millionaire-book
🎧 THE LAWYER MILLIONAIRE PODCAST
Apple Podcasts: https://podcasts.apple.com/us/podcast/the-lawyer-millionaire-podcast-business-financial/id1617888607
Spotify: https://open.spotify.com/show/1UzNhoXUtW9qsDTdDCE30k
All episodes: https://www.lawyermillionaire.com/episodes
📚 MORE FOR LAW FIRM OWNERS
Free resources: https://www.lawyermillionaire.com/law-firm-owner-resources
Upcoming events and masterclass replays: https://www.lawyermillionaire.com/events
▶ WATCH THE FULL PROFIT ON PURPOSE SERIES
Part 2 – The 6 Disciplines of Strong Cash Flow for Law Firms: https://youtu.be/aRfxLKC2SX8
Part 3 – The Science of Scaling for Law Firms: https://youtu.be/PUeVpuso1-A
Book Club – The Great Game of Business: https://youtu.be/AFfL1V33jCo
🔔 SUBSCRIBE for weekly strategies on law firm profitability, tax planning, and building a work-optional future: https://www.youtube.com/@thelawyermillionaire/
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Hosted by Darren Wurz, CFP®, founder of The Lawyer Millionaire and financial planner and business advisor for law firm owners. Investment advisory services offered through Wurz Financial Services, LLC. This content is for educational purposes only and is not individualized financial, tax, or legal advice.