Podcast: Play in new window | Download (Duration: 21:32 — 19.7MB)
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In this episode, Alay and Bo discuss:
- What profit is and why it is so important.
- Understanding where you’re making money and how you can make more of it.
- The concepts of realization and utilization, how well you price, and how well you maintain pricing.
Key Takeaways:
- Many law firms look at cash in the door to understand if they were successful, but there are many ways of understanding profitability.
- Understand the non-standard owner expenses that are being applied to your firm’s finances.
- Watch your variable costs and make sure they don’t become fixed or sinking costs.
- Real estate and tax law have been weak, but most other areas have seen at least modest growth.
Tweetable Moments:
- “When talking about profit, it comes down to two things: it is about we grow the pie, and how we divide the pie.” — Bo Yancey
- “All firms should be raising their rates every single year. Period. Full Stop.” — Bo Yancey
- “The best option, if you can execute on it, is business development – going out and figuring out ways to generate that work. There are two ways to do that. The easier and least expensive of the two is to grow your existing clients.” — Bo Yancey
- “You will find if you do raise your rates, oftentimes the customers that are a pain in your neck will tap out and it gives you more opportunity to work with clients whom you really enjoy and who you do your best work for.” — Alay Yajnik
Connect with Bo Yancey:
Website: https://boyancey.focalpointcoaching.com/
Email: byancey@focalpointcoaching.com
LinkedIn: https://www.linkedin.com/in/boyancey/
Connect with Alay Yajnik:
Podcast: http://lawyerbusinessadvantage.com/
One Page Strategic Plan: LawFirmSuccessGroup.com
Email: Alay@YajnikGroup.com
LinkedIn: linkedin.com/in/alayyajnik