The 6 Disciplines of Strong Cash Flow for Law Firms | Profit Masterclass
Most law firm owners can read a P&L. Far fewer can tell you, this week, whether the firm is on track to hit its profit target, how much of the cash in the operating account is already spoken for by taxes, or whether the last hire is paying for itself. That gap is not a knowledge problem. It is a discipline problem.
In this masterclass, Darren Wurz, CFP®, founder of The Lawyer Millionaire®, walks through the six operating disciplines from the second half of Greg Crabtree’s Simple Numbers, adapted for law firms. Part 1 of this series gave you the four numbers to diagnose your firm. This session shows you how to run it.
The six disciplines:
Tax Discipline – Why tax distributions and profit distributions are two different lines, and how to stop one from eating the other
Labor Discipline – Gross profit per labor dollar: the truest measure of whether your team is producing, and the number that tells you when to hire
Capital Discipline – The three sources of capital for a law firm, and why debt is not one of them
Rhythm Discipline – The daily, weekly, and monthly reporting cadence that turns your numbers into decisions
Value Discipline – What your firm is actually worth, and why you need that number long before you plan to sell
Planning Discipline – Why the annual budget fails most firms, and how to forecast instead
Whether you run a solo practice or a 10-attorney firm, these six disciplines are the difference between a firm that generates revenue and a firm that builds wealth.
📅 BOOK A STRATEGY CALL
Want to know what these six disciplines say about your firm? Book a call with Darren: https://www.lawyermillionaire.com/strategy
📊 VALUE MY FIRM
Get a free estimate of what your law firm is worth: https://audit.lawyermillionaire.com/firm-value
📘 GET THE BOOK
The Lawyer Millionaire: The Complete Guide for Attorneys on Maximizing Wealth, Minimizing Taxes, and Retiring with Confidence (published by the American Bar Association): 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
How we help: https://www.lawyermillionaire.com/financial-planning-for-law-firm-owners