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7 Stages of Law
Firm Growth
Firm Growth
There are 7 “Stages” that law firms typically pass through as they move from start-up to mid-size. And then several more once a law firm becomes mid-size. But keep in mind these stages are a lot like puberty. It doesn’t happen exactly the same way for everyone, or on anyone’s precise schedule. And so, while a more thoughtful analysis is required, recommended and available we do find that gross revenue is a useful place to enter the conversation:
The Law Firm Diagnostic is not a pitch. It’s not a plan. It’s a moment of truth where we help you diagnose how to grow your law firm.
We’ve been doing this since 1999 and have helped start, manage & grow THOUSANDS of law firms. So yes, we have a TON of great stuff that we would love to share with you.
The Pause is not a pitch. It’s not a plan. It’s a moment of truth where we help you diagnose how to grow your law firm.
We’ve been doing this since 1999 and have helped start, manage & grow THOUSANDS of law firms. So yes, we have a TON of great stuff that we would love to share with you.
STAGE
1
$0 - $250K
"I’m Doing It All Myself."
The name of the game here is "hustle, market, sell." This is the most exhausting stage of growth for a law firm owner. But also the most important, for creating a solid foundation for future growth and profitability.This is also the part of the process that most inexperienced entrepreneurs rush through.Which is why, when we find a law firm owner struggling in later stages it’s often because they tried to build a "second story" on top of a weak foundation. Cracks begin to appear. And if no one goes back to shore up the foundation, the firm can (and many do) collapse.
If a law firm owner remains in Stage 1 for too long, they can begin to experience “business fatigue” and may come to the false-conclusion that the only way to build a half-a-million-dollar law firm is by working twice as hard.
"I’m already working as hard as I can. I don’t want to double my firm’s revenue even if it means a big increase in my personal income, because I can’t imagine working twice as hard as I already do.”
We often hear sentiments like this from lawyers whose firms have been stuck in Stage 1 too long. They have a hard time imagining it’s actually easier (yes, easier) to run a law firm in Stage 2 than in Stage 1.
And for some very practical reasons, it’s easier to run a law firm in Stage 3 than in Stage 2, etc., etc.To discuss what some of these practical reasons are – or to discover them for yourself – we recommend you “Take The Diagnostic” to analyze what’s really happening in your law firm.
Click HERE to learn how you can do that now.
If a law firm owner remains in Stage 1 for too long, they can begin to experience “business fatigue” and may come to the false-conclusion that the only way to build a half-a-million-dollar law firm is by working twice as hard.
"I’m already working as hard as I can. I don’t want to double my firm’s revenue even if it means a big increase in my personal income, because I can’t imagine working twice as hard as I already do.”
We often hear sentiments like this from lawyers whose firms have been stuck in Stage 1 too long. They have a hard time imagining it’s actually easier (yes, easier) to run a law firm in Stage 2 than in Stage 1.
And for some very practical reasons, it’s easier to run a law firm in Stage 3 than in Stage 2, etc., etc.To discuss what some of these practical reasons are – or to discover them for yourself – we recommend you “Take The Diagnostic” to analyze what’s really happening in your law firm.
Click HERE to learn how you can do that now.
The Law Firm Diagnostic is not a pitch. It’s not a plan. It’s a moment of truth where we help you diagnose how to grow your law firm.
We’ve been doing this since 1999 and have helped start, manage & grow THOUSANDS of law firms. So yes, we have a TON of great stuff that we would love to share with you.
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STAGE
2
$250K - $500K
"Buying Your Freedom."
In this stage of a firm’s growth many law firm owners begin to think about buying some freedom. And they begin by hiring employees. Without prior business management experience or experience in leadership positions however, they often struggle to realize the freedom they desire and require, to keep growing the business and to have a life.
Frequently, we find most of this can be traced back to simple management mistakes being made, due to lack of experience, not lack of intelligence. There are, for example important differences between how to manage employees vs. staff vs. team, for maximum harmony and profitability. Mistakes made in this area of law firm management have often been “baked in” to the law firms we find in Stage 2. Now may be the time to go back & get everything "out of your head" if you failed to put this foundational piece into place, back in Stage 1.
Many of the law firm owners we first encounter with firms in this stage of growth are brilliant lawyers and wonderful people. They’re also inexperienced entrepreneurs and frequently find themselves struggling, frustrated and sometimes discouraged by the challenges of articulating a vision for their law firm, its core values, and a brand promise clients and staff can depend on.
Stage 2 is mostly about building the library of intellectual property (checklists, templates, policies,procedures, systems, job descriptions, KPIs) you and your employees, staff, team, vendors and even the firm’s future clients will need to create a harmonious and mutually profitable working relationship.
A common mistake many law firm owners make in this stage of growth, is hiding out in their areas of expertise (the practice of law). We frequently find these law firm owners drowning under a pile of “helpers”,instead of learning how to replace themselves in the practice of law (at least for a time); so they can give more attention to the business-side of the firm. Until one day they wake up and realize they’re spending all their time (and potentially hundreds of thousands of dollars of otherwise productive time) answering everyone’s questions, instead of building a business, or having a life.
If you believe your law firm is in Stage 2 – or perhaps exhibits some of the characteristics of a law firm in Stage 2 of the growth trajectory and you are ready to “Take The Diagnostic” to consider what may really be happening in your business so you can see a path forward please click HERE to schedule an appointment to speak with someone from our Team or help yourself to “The Diagnostic” - a do it yourself tool you can use to evaluate, inventory and better understand your law firm’s internal strengths, internal weaknesses, external opportunities and external threats.
NOTE: In the business world this is called a “S.W.O.T. Analysis”.
Frequently, we find most of this can be traced back to simple management mistakes being made, due to lack of experience, not lack of intelligence. There are, for example important differences between how to manage employees vs. staff vs. team, for maximum harmony and profitability. Mistakes made in this area of law firm management have often been “baked in” to the law firms we find in Stage 2. Now may be the time to go back & get everything "out of your head" if you failed to put this foundational piece into place, back in Stage 1.
Many of the law firm owners we first encounter with firms in this stage of growth are brilliant lawyers and wonderful people. They’re also inexperienced entrepreneurs and frequently find themselves struggling, frustrated and sometimes discouraged by the challenges of articulating a vision for their law firm, its core values, and a brand promise clients and staff can depend on.
Stage 2 is mostly about building the library of intellectual property (checklists, templates, policies,procedures, systems, job descriptions, KPIs) you and your employees, staff, team, vendors and even the firm’s future clients will need to create a harmonious and mutually profitable working relationship.
A common mistake many law firm owners make in this stage of growth, is hiding out in their areas of expertise (the practice of law). We frequently find these law firm owners drowning under a pile of “helpers”,instead of learning how to replace themselves in the practice of law (at least for a time); so they can give more attention to the business-side of the firm. Until one day they wake up and realize they’re spending all their time (and potentially hundreds of thousands of dollars of otherwise productive time) answering everyone’s questions, instead of building a business, or having a life.
If you believe your law firm is in Stage 2 – or perhaps exhibits some of the characteristics of a law firm in Stage 2 of the growth trajectory and you are ready to “Take The Diagnostic” to consider what may really be happening in your business so you can see a path forward please click HERE to schedule an appointment to speak with someone from our Team or help yourself to “The Diagnostic” - a do it yourself tool you can use to evaluate, inventory and better understand your law firm’s internal strengths, internal weaknesses, external opportunities and external threats.
NOTE: In the business world this is called a “S.W.O.T. Analysis”.
The Law Firm Diagnostic is not a pitch. It’s not a plan. It’s a moment of truth where we help you diagnose how to grow your law firm.
We’ve been doing this since 1999 and have helped start, manage & grow THOUSANDS of law firms. So yes, we have a TON of great stuff that we would love to share with you.
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STAGE
3
$500K - $1M
Data Driven Decisions
In Stage 3 most law firm owners either begin learning how to make data-driven decisions based on financials instead of feelings; or else when we find them with firms already in this stage of growth, they’re usually beginning to show signs of “decision fatigue”.
It’s not because the decisions that must be made in a million-dollar law firm are much harder than the decisions to be made for a law firm in the first or second stage of growth; there are just so many more of them. They come at you faster. And the cost of each delay begins to add up.
An uncomfortable (but potentially liberating) opportunity for owners of law firms in Stage 3 is to begin hiring and learning how to work with professionals who have more experience and better training than you, in important areas of the business. And don’t worry, when the firm grosses $1MM for the first time in a calendar year, we'll celebrate this important milestone; we’ll also begin helping the law firms we help to manage, make plans to bring on a full-time Professional Legal Administrator, usually around $1.5MM.
Stage 3 is also the stage of growth when some law firm owners finally begin to discover how profitable it really is to have bookkeeping that doesn't suck.
Too many of the frustrations we find law firm owners struggling with (and complaining about) when their law firm is quietly kicking their ass in Stage 3 can be traced back to bookkeeping that sucks; causing a maddening lack of visibility into the financials of their business, a demoralizing lack of predictability and a frustrating lack of control.
It’s like they’re trying to drive their car ahead, by looking in the rear-view mirror thinking the solution is to get more accurate reports of what has already happened. As if that’s a substitute for a proper discussion each quarter and each month about what’s coming up in the next 90-180 days...while there’s still time to be proactive. (It is not).
If you are reading this maybe it’s landing a little too close to home. We want you to know it’s not your fault. Most bookkeepers just-plain-suck. Like, seriously suck. The reports they produce are created for their own convenience not to give you, the owner of the law firm actionable insights into what’s really happening in your business. And they lack the internal fortitude to charge the “little bit more” that would be required for them to be able to make a profit and still hold your hand each month while they walk you through your firm’s financials, so you can actually know WTF is really going on in your business. (sucky bookkeepers are a pet peeve of ours!)
The Good News is if you grew your business this far with sucky bookkeeping, just imagine how much better things could be!
Tens of thousands of small law firm owners (and plenty of mid-size law firm owners too) have read or listened to the audio book version of “Profit First For Lawyers”. If you take the profitability of your law firm at all seriously, please click HERE to get the book or at least listen to the podcast!
Or click HERE to schedule an appointment to speak with someone from our Team about taking The Diagnostic. This is an opportunity to take inventory of what’s really happening in your business and identify some of the small, medium & “I’m just ready to burn it all down” big opportunities for improvement.
Click HERE to schedule an appointment now.
It’s not because the decisions that must be made in a million-dollar law firm are much harder than the decisions to be made for a law firm in the first or second stage of growth; there are just so many more of them. They come at you faster. And the cost of each delay begins to add up.
An uncomfortable (but potentially liberating) opportunity for owners of law firms in Stage 3 is to begin hiring and learning how to work with professionals who have more experience and better training than you, in important areas of the business. And don’t worry, when the firm grosses $1MM for the first time in a calendar year, we'll celebrate this important milestone; we’ll also begin helping the law firms we help to manage, make plans to bring on a full-time Professional Legal Administrator, usually around $1.5MM.
Stage 3 is also the stage of growth when some law firm owners finally begin to discover how profitable it really is to have bookkeeping that doesn't suck.
Too many of the frustrations we find law firm owners struggling with (and complaining about) when their law firm is quietly kicking their ass in Stage 3 can be traced back to bookkeeping that sucks; causing a maddening lack of visibility into the financials of their business, a demoralizing lack of predictability and a frustrating lack of control.
It’s like they’re trying to drive their car ahead, by looking in the rear-view mirror thinking the solution is to get more accurate reports of what has already happened. As if that’s a substitute for a proper discussion each quarter and each month about what’s coming up in the next 90-180 days...while there’s still time to be proactive. (It is not).
If you are reading this maybe it’s landing a little too close to home. We want you to know it’s not your fault. Most bookkeepers just-plain-suck. Like, seriously suck. The reports they produce are created for their own convenience not to give you, the owner of the law firm actionable insights into what’s really happening in your business. And they lack the internal fortitude to charge the “little bit more” that would be required for them to be able to make a profit and still hold your hand each month while they walk you through your firm’s financials, so you can actually know WTF is really going on in your business. (sucky bookkeepers are a pet peeve of ours!)
The Good News is if you grew your business this far with sucky bookkeeping, just imagine how much better things could be!
Tens of thousands of small law firm owners (and plenty of mid-size law firm owners too) have read or listened to the audio book version of “Profit First For Lawyers”. If you take the profitability of your law firm at all seriously, please click HERE to get the book or at least listen to the podcast!
Or click HERE to schedule an appointment to speak with someone from our Team about taking The Diagnostic. This is an opportunity to take inventory of what’s really happening in your business and identify some of the small, medium & “I’m just ready to burn it all down” big opportunities for improvement.
Click HERE to schedule an appointment now.
The Law Firm Diagnostic is not a pitch. It’s not a plan. It’s a moment of truth where we help you diagnose how to grow your law firm.
We’ve been doing this since 1999 and have helped start, manage & grow THOUSANDS of law firms. So yes, we have a TON of great stuff that we would love to share with you.
STAGE
4
$1M-$1.5M
Let Go, Or Plateau
If a law firm owner can grow their law firm up, through the first three Stages of Growth and it lands solidly in Stage 4, chances are they can probably keep the firm running on their own without a full time professional legal administrator; or any help from us.If a law firm owner can grow their law firm up, through the first three Stages of Growth and it lands solidly in Stage 4, chances are they can probably keep the firm running on their own without a full time professional legal administrator; or any help from us.
But at what cost?
Owners of law firms who come to us having already reached this stage of growth usually benefit from a thoughtful discussion about the unforeseen risks and hidden costs they may be incurring by holding on to certain roles & responsibilities that could be better attended to by a full time professional legal administrator.
Consider This:
A well-managed $1 million dollar law firm should be capable of giving its owner(s) about $250-300,000 in Total Owner Benefits. An equally well-managed $1.5 million dollar law firm should be capable of producing an additional $150-200,000 in profit. The question in Stage 4 is what to do with the additional $150-200,000?
Some law firm owners elect to pocket this additional profit. Others will reinvest it to hire a full time professional legal administrator/COO.
One the one hand, an extra $150-200,000 can dramatically up level a person's life who would otherwise be earning "only" $250-300,000; but this decision comes at a cost. Specifically, in terms of personal freedom, professional stability and long-term financial growth.
There are Owners of $1.5MM law firms who decide to keep the extra profit and elect to do the job of a professional legal administrator/COO themselves; and those who are ready to reinvest to buy more freedom and/or accelerate the growth of the law firm.
There isn't necessarily a "right" or a "wrong" choice. We help to manage more than a hundred law firms in this stage of growth and for some very good reasons some of the Owners we counsel have elected to keep the extra profit and elect to do the job of a professional legal administrator/COO themselves; while others have asked us to help them develop a plan to intelligently and intentionally reinvest some or all of these additional profits in bringing on key positions that will allow the law firm to grow faster, more profitably and with less drama. We support either decision.
The problem is, most of the law firm owners we first encounter when their law firm is already in this 3rd stage of growth and who find themselves "stuck" at around $1.5 million gross revenue, and with not a lot of personal freedom, and not a lot of confidence about what would happen if something were to happen to them - they didn't make the choice consciously.
Doing the job of a Chief Operating Officer (known as a Professional Legal Administrator in the legal industry) simply isn’t where lawyers usually shine. Nor is that usually a law firm owner's "happy place"; On the other hand, when a law firm owner chooses to reinvest the extra profit to buy their freedom and equip their firm with a 45 hours a week full time (vs. part time), experienced & professional (vs. inexperienced and untrained), professional legal administrator who actually enjoys the administrative functions of the role (vs. most lawyers who hate it) a lot of really good and exciting things can begin to happen.
The upshot of this decision is that the law firm gets the benefit of a dedicated, full time (45 hours a week), experienced, trained and enthusiastic business administrator. The business runs better. And the Owner of the firm gets back usually 10-15 hours a week of their time doing work they don't usually enjoy doing, and can now reinvest that time, energy & attention making plans to grow the firm up into the 5th stage of growth.
But hiring a full time, educated, trained, and experienced professional legal administrator can be intimidating. And it can be scary to let someone else take the reins on the business you've been fueling with your own blood, sweat & tears. And it can be uncomfortable to hear a stranger come in & tell you that your baby is ugly, then watch them dismantle parts (or all of) what you’ve cobbled-together- even if you can see clear evidence of improvements in your bank account & on your calendar.
It is in this stage of growth where a law firm owner typically learns how to co-manage the firm with their professional legal administrator, or they won’t. Because not everyone is emotionally prepared to grow in this way. Not everyone has a good enough reason to "power through it". And your ego may take a hit.
Because there's a lot of "letting go" involved, which is scary. And most of the time, the way the way the lawyers we meet in Stage 4 grew their law firm to its first million dollars of sustainable, predictable, and profitable annual revenue in the first place, is by being "the most" in most areas of the business. The most experienced lawyer. The hero with the most answers. The one person clients think of, the most. This can be gratifying to the ego — and gives the inexperienced entrepreneur a (false) sense of control. But when everything is being held together by your own two hands, it's fragile. And the law firm owners who failed to install foundational systems for their firms to run on (instead of sweat) back in Stage 3 — these are often the lawyers who wake up one day and find, to their dismay, that they're also the ones who still work the most, too.
If your law firm is already firmly in Stage 4 of its growth trajectory and you believe you have a compelling-enough reason in your life to take an honest look at what’s really happening and consider your options, please click HERE to schedule an appointment for someone from our Team to discuss taking “The Diagnostic” with you and/or your spouse/significant-other. . . or anyone-else who has a deep vested interest in the success of your law firm.
But at what cost?
Owners of law firms who come to us having already reached this stage of growth usually benefit from a thoughtful discussion about the unforeseen risks and hidden costs they may be incurring by holding on to certain roles & responsibilities that could be better attended to by a full time professional legal administrator.
Consider This:
A well-managed $1 million dollar law firm should be capable of giving its owner(s) about $250-300,000 in Total Owner Benefits. An equally well-managed $1.5 million dollar law firm should be capable of producing an additional $150-200,000 in profit. The question in Stage 4 is what to do with the additional $150-200,000?
Some law firm owners elect to pocket this additional profit. Others will reinvest it to hire a full time professional legal administrator/COO.
One the one hand, an extra $150-200,000 can dramatically up level a person's life who would otherwise be earning "only" $250-300,000; but this decision comes at a cost. Specifically, in terms of personal freedom, professional stability and long-term financial growth.
There are Owners of $1.5MM law firms who decide to keep the extra profit and elect to do the job of a professional legal administrator/COO themselves; and those who are ready to reinvest to buy more freedom and/or accelerate the growth of the law firm.
There isn't necessarily a "right" or a "wrong" choice. We help to manage more than a hundred law firms in this stage of growth and for some very good reasons some of the Owners we counsel have elected to keep the extra profit and elect to do the job of a professional legal administrator/COO themselves; while others have asked us to help them develop a plan to intelligently and intentionally reinvest some or all of these additional profits in bringing on key positions that will allow the law firm to grow faster, more profitably and with less drama. We support either decision.
The problem is, most of the law firm owners we first encounter when their law firm is already in this 3rd stage of growth and who find themselves "stuck" at around $1.5 million gross revenue, and with not a lot of personal freedom, and not a lot of confidence about what would happen if something were to happen to them - they didn't make the choice consciously.
Doing the job of a Chief Operating Officer (known as a Professional Legal Administrator in the legal industry) simply isn’t where lawyers usually shine. Nor is that usually a law firm owner's "happy place"; On the other hand, when a law firm owner chooses to reinvest the extra profit to buy their freedom and equip their firm with a 45 hours a week full time (vs. part time), experienced & professional (vs. inexperienced and untrained), professional legal administrator who actually enjoys the administrative functions of the role (vs. most lawyers who hate it) a lot of really good and exciting things can begin to happen.
The upshot of this decision is that the law firm gets the benefit of a dedicated, full time (45 hours a week), experienced, trained and enthusiastic business administrator. The business runs better. And the Owner of the firm gets back usually 10-15 hours a week of their time doing work they don't usually enjoy doing, and can now reinvest that time, energy & attention making plans to grow the firm up into the 5th stage of growth.
But hiring a full time, educated, trained, and experienced professional legal administrator can be intimidating. And it can be scary to let someone else take the reins on the business you've been fueling with your own blood, sweat & tears. And it can be uncomfortable to hear a stranger come in & tell you that your baby is ugly, then watch them dismantle parts (or all of) what you’ve cobbled-together- even if you can see clear evidence of improvements in your bank account & on your calendar.
It is in this stage of growth where a law firm owner typically learns how to co-manage the firm with their professional legal administrator, or they won’t. Because not everyone is emotionally prepared to grow in this way. Not everyone has a good enough reason to "power through it". And your ego may take a hit.
Because there's a lot of "letting go" involved, which is scary. And most of the time, the way the way the lawyers we meet in Stage 4 grew their law firm to its first million dollars of sustainable, predictable, and profitable annual revenue in the first place, is by being "the most" in most areas of the business. The most experienced lawyer. The hero with the most answers. The one person clients think of, the most. This can be gratifying to the ego — and gives the inexperienced entrepreneur a (false) sense of control. But when everything is being held together by your own two hands, it's fragile. And the law firm owners who failed to install foundational systems for their firms to run on (instead of sweat) back in Stage 3 — these are often the lawyers who wake up one day and find, to their dismay, that they're also the ones who still work the most, too.
If your law firm is already firmly in Stage 4 of its growth trajectory and you believe you have a compelling-enough reason in your life to take an honest look at what’s really happening and consider your options, please click HERE to schedule an appointment for someone from our Team to discuss taking “The Diagnostic” with you and/or your spouse/significant-other. . . or anyone-else who has a deep vested interest in the success of your law firm.
The Law Firm Diagnostic is not a pitch. It’s not a plan. It’s a moment of truth where we help you diagnose how to grow your law firm.
We’ve been doing this since 1999 and have helped start, manage & grow THOUSANDS of law firms. So yes, we have a TON of great stuff that we would love to share with you.
STAGE
5
$1.5M - $3M
Becoming Fluent In Finance
You know how “civilians” accuse lawyers of speaking “Legalese”. Well, it’s true. A lot of lawyers do speak this “foreign language”. And accountants speak “Accountingese”. And there are at least two different dialects; one is spoken by financial accountants – the other by management accountants.
All management accountants are fluent in the dialect of the financial accountants; but very few financial accountants are fluent in the dialect of management accountants.
The best CFO’s & Controllers come from the land of the Management Accountants; the worst (and we mean, worst) CFO’s & Controllers (and some pretty bad bookkeepers, too) have never ventured outside the confines of financial accounting.
Are you confused yet? You don’t have to be. None of this has to be complicated. Unfortunately, we encounter a lot (A LOT) of law firm owners with unprofitable law firms grossing more than $3 million dollars – and up into the multiple-8-figures, too who we discover to be financially-illiterate. Now before you go and get upset, keep in mind that the word “illiterate” simply means “unable to read or write”. RJon Robins, the Founder & CEO of our organization is musically illiterate.
He cannot read or write music. He’s also illiterate in all spoken languages except English. This is not because he is a stupid moron. It’s simply because no-one ever taught him. And as of the publication of this website, he still has not made it a point to learn.
So, you can relax. We’re not judging anyone for being financially illiterate. It doesn’t make the owners of these law firms, bad people. It’s simply a fact.
Probably 90% of the law firm owners we meet - brilliant lawyers, skilled advocates, wonderful human beings who are highly effective at the practice of law, they are also financially illiterate. And that more than anything else explains why their law firms aren’t running as smoothly or as profitably as they could be.
More Good News. . . you can click HERE now and we’ll share with you a program that has become very popular with the law firm owners whose firms we help to manage. The program is called “Financial Literacy For Law Firm Owners” and it’s our pleasure to be able to share it with you at no charge, just because you’ve read this far and just because we can.
When a law firm reaches its 5th stage of growth, this is usually where the owner of the law firm can find the most relief by becoming more financially literate and then bringing in a full-time professional CFO. Not just someone to keep the books clean or run reports — but a strategic financial partner who protects the profits of the firm and takes the lead in financial strategy, projections, risk management, lender relations, and tax planning (in cooperation with a professional tax strategist).
This is when you stop managing your money based on gut feel, and start managing it with confidence, clarity, and foresight. A professional CFO acts as the firm’s financial conscience — using the firm’s reporting systems as a feedback mechanism to challenge assumptions, surface inconvenient truths, and call for changes when a tactic — or even the whole strategy — isn’t working as expected.
They’ll tell you where your money’s actually going. Where the risk is. What it’ll take to hit your goals without bleeding cash or burning out. They build forecasting models. Spot margin leaks. Protect your profit.
This stage often comes with some tough financial truths. But for the owner who’s ready to hear them — and act on them — this is one of the most profitable and empowering transitions a firm can make.
If you have grown your law firm into the 5th stage of growth you may be pleasantly surprised by what The Diagnostic can do for your clarity. Please click HERE to help yourself to the DIY version or schedule an appointment with someone from our Team to walk you through it, with our compliments, today.
All management accountants are fluent in the dialect of the financial accountants; but very few financial accountants are fluent in the dialect of management accountants.
The best CFO’s & Controllers come from the land of the Management Accountants; the worst (and we mean, worst) CFO’s & Controllers (and some pretty bad bookkeepers, too) have never ventured outside the confines of financial accounting.
Are you confused yet? You don’t have to be. None of this has to be complicated. Unfortunately, we encounter a lot (A LOT) of law firm owners with unprofitable law firms grossing more than $3 million dollars – and up into the multiple-8-figures, too who we discover to be financially-illiterate. Now before you go and get upset, keep in mind that the word “illiterate” simply means “unable to read or write”. RJon Robins, the Founder & CEO of our organization is musically illiterate.
He cannot read or write music. He’s also illiterate in all spoken languages except English. This is not because he is a stupid moron. It’s simply because no-one ever taught him. And as of the publication of this website, he still has not made it a point to learn.
So, you can relax. We’re not judging anyone for being financially illiterate. It doesn’t make the owners of these law firms, bad people. It’s simply a fact.
Probably 90% of the law firm owners we meet - brilliant lawyers, skilled advocates, wonderful human beings who are highly effective at the practice of law, they are also financially illiterate. And that more than anything else explains why their law firms aren’t running as smoothly or as profitably as they could be.
More Good News. . . you can click HERE now and we’ll share with you a program that has become very popular with the law firm owners whose firms we help to manage. The program is called “Financial Literacy For Law Firm Owners” and it’s our pleasure to be able to share it with you at no charge, just because you’ve read this far and just because we can.
When a law firm reaches its 5th stage of growth, this is usually where the owner of the law firm can find the most relief by becoming more financially literate and then bringing in a full-time professional CFO. Not just someone to keep the books clean or run reports — but a strategic financial partner who protects the profits of the firm and takes the lead in financial strategy, projections, risk management, lender relations, and tax planning (in cooperation with a professional tax strategist).
This is when you stop managing your money based on gut feel, and start managing it with confidence, clarity, and foresight. A professional CFO acts as the firm’s financial conscience — using the firm’s reporting systems as a feedback mechanism to challenge assumptions, surface inconvenient truths, and call for changes when a tactic — or even the whole strategy — isn’t working as expected.
They’ll tell you where your money’s actually going. Where the risk is. What it’ll take to hit your goals without bleeding cash or burning out. They build forecasting models. Spot margin leaks. Protect your profit.
This stage often comes with some tough financial truths. But for the owner who’s ready to hear them — and act on them — this is one of the most profitable and empowering transitions a firm can make.
If you have grown your law firm into the 5th stage of growth you may be pleasantly surprised by what The Diagnostic can do for your clarity. Please click HERE to help yourself to the DIY version or schedule an appointment with someone from our Team to walk you through it, with our compliments, today.
The Law Firm Diagnostic is not a pitch. It’s not a plan. It’s a moment of truth where we help you diagnose how to grow your law firm.
We’ve been doing this since 1999 and have helped start, manage & grow THOUSANDS of law firms. So yes, we have a TON of great stuff that we would love to share with you.
STAGE
6
$3M - $5M
This is where things get uncomfortable again -
and that’s a good thing
and that’s a good thing
This is usually when the firm brings in a full-time CMO or Chief Revenue Officer and begins conducting the kind of deep systems checks required to prepare the firm for the leap into the next pond. The leadership team expands. Accountability increases. Weaknesses get exposed. Not because something’s gone wrong — but because this is what growth requires.
Almost always — even with law firms we've helped grow to this stage — we end up tearing down, rebuilding, and replacing many of the operating systems. Because the ones that got the firm here weren’t built to take it any further.
Keep in mind, just because you meet a law firm owner with a $5MM, $8MM, or even $10MM firm doesn’t mean that firm is profitable — or that it can run without the owner. Far from it. On the surface, things may look fine. But underneath? When we get into the financials — and the systems — we often find a mess.
Firms that want to grow beyond $10MM almost always have to upgrade not only their systems, but the caliber of talent across their C-Suite — including their COO/Professional Legal Administrator, CFO, CMO, and mentoring attorneys (not to be confused with managing attorneys).
It’s a hard transition. Because it’s not just about change — it’s about loss. Systems you became comfortable with. People you know, like, and trust. Roles you used to play. Some of it will probably have to go.
And by this point, the owner is usually earning well over $1MM per year from the business. That makes it even harder to risk breaking what’s working — even when you know that what you’re trading it in for, could be even better.
Plus, to grow past this stage, most owners have to roll up their sleeves and do a whole bunch of very unglamorous things they probably haven’t done in years. The work is real. The stakes are high. And what you uncover when you start pulling up the floorboards might just break your heart a little bit.
But this is how the next version of your business — and the next version of you — gets built.
If you are serious about preparing your $5-10 million dollar law firm to make it ready for the leap into the mid-size law firm pond please click HERE now. It all begins with The Diagnostic.
Almost always — even with law firms we've helped grow to this stage — we end up tearing down, rebuilding, and replacing many of the operating systems. Because the ones that got the firm here weren’t built to take it any further.
Keep in mind, just because you meet a law firm owner with a $5MM, $8MM, or even $10MM firm doesn’t mean that firm is profitable — or that it can run without the owner. Far from it. On the surface, things may look fine. But underneath? When we get into the financials — and the systems — we often find a mess.
Firms that want to grow beyond $10MM almost always have to upgrade not only their systems, but the caliber of talent across their C-Suite — including their COO/Professional Legal Administrator, CFO, CMO, and mentoring attorneys (not to be confused with managing attorneys).
It’s a hard transition. Because it’s not just about change — it’s about loss. Systems you became comfortable with. People you know, like, and trust. Roles you used to play. Some of it will probably have to go.
And by this point, the owner is usually earning well over $1MM per year from the business. That makes it even harder to risk breaking what’s working — even when you know that what you’re trading it in for, could be even better.
Plus, to grow past this stage, most owners have to roll up their sleeves and do a whole bunch of very unglamorous things they probably haven’t done in years. The work is real. The stakes are high. And what you uncover when you start pulling up the floorboards might just break your heart a little bit.
But this is how the next version of your business — and the next version of you — gets built.
If you are serious about preparing your $5-10 million dollar law firm to make it ready for the leap into the mid-size law firm pond please click HERE now. It all begins with The Diagnostic.
The Law Firm Diagnostic is not a pitch. It’s not a plan. It’s a moment of truth where we help you diagnose how to grow your law firm.
We’ve been doing this since 1999 and have helped start, manage & grow THOUSANDS of law firms. So yes, we have a TON of great stuff that we would love to share with you.
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STAGE
7
$5M - $10M+
The Mid-Size Law Firm Pond
This is where we help law firm owners make the transition into being the owner of a mid-size law firm that doesn't need you anymore. It’s a little bit like being an "empty nester." If you built it right, your law firm doesn’t really need you anymore — at least not for the day-to-day or even month-to-month operations.
You’ll be leading the team quarter by quarter. You won’t likely be able to know the names of everyone who works in the firm. And they won’t know you. Little things you do will be misunderstood, misinterpreted, exaggerated out of proportion.
You’ll stop being seen as a "person" to many of the firm's employees, vendors, and clients. Offhand comments you make will suddenly be the subject of discussion. You won’t be able to joke around like you used to with the people who were in the foxhole with you — the ones who really know who you are and what your intentions are.
And that’s OK. Because if you’ve made it here, you didn’t get here by accident. You earned it.
You’ll be leading the team quarter by quarter. You won’t likely be able to know the names of everyone who works in the firm. And they won’t know you. Little things you do will be misunderstood, misinterpreted, exaggerated out of proportion.
You’ll stop being seen as a "person" to many of the firm's employees, vendors, and clients. Offhand comments you make will suddenly be the subject of discussion. You won’t be able to joke around like you used to with the people who were in the foxhole with you — the ones who really know who you are and what your intentions are.
And that’s OK. Because if you’ve made it here, you didn’t get here by accident. You earned it.
The Law Firm Diagnostic is not a pitch. It’s not a plan. It’s a moment of truth where we help you diagnose how to grow your law firm.
We’ve been doing this since 1999 and have helped start, manage & grow THOUSANDS of law firms. So yes, we have a TON of great stuff that we would love to share with you.
You don’t need to guess.
Every law firm is at one of these stages.
Every law firm is at one of these stages.
The question is:
The Law Firm Diagnostic is not a pitch. It’s not a plan. It’s a moment of truth where we help you diagnose how to grow your law firm.
We’ve been doing this since 1999 and have helped start, manage & grow THOUSANDS of law firms. So yes, we have a TON of great stuff that we would love to share with you.
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