01. You Need to Understand What Levers to Pull to Make Your Financial Goals a Reality
Your law firm needs a documented long-term financial strategy and profitability model. This is a living document that forecasts revenue, expenses, net profit, cash reserves, and the value of your business.
Think about this document as the numbers-based counterpart to your firm’s written vision and goals. This isn’t a once and done project, but a tool you use to manage your daily operations actively.
It’s not enough to say in December that you want to make $200,000 more in profits next year and it will magically happen. Having a financial strategy allows you to see exactly what steps you need to take to generate additional revenue (how many additional cases will you work?) and how much it will cost you to generate that revenue (will you need new staff or technology to help you get there?). This is the type of thinking that will allow you to understand the steps you’ll need to take to reach your financial goals.
This exercise doesn’t need to keep you up at night. Our Lab financial coaches live to help lawyers get excited about their financials. We can walk you through a process that will make you feel like a financial genius in no time.