RJon Robins

The Causes of a Law Firm’s Success or Failure

The Causes Of A Law Firm’s Success or Failure NEWSFLASH: Your law firm either runs reliably, efficiently, and profitably, or it runs BADLY. It’s time to act like a grown-up business owner and accept the fact that whether your law firm runs well or poorly, YOU. ARE. THE. CAUSE. Not that it’s your fault; you don’t know what you don’t know, and nobody ever taught you this. But the fact is that there are some surprisingly-simple, practical, non-negotiable, real-world mechanics which are required to make a law firm run well. If you have ever heard me speak at a live event you have probably heard me say that a law firm is a relatively simple business to operate. Compared to just about any of the other kinds of businesses you probably patronize every month, a law firm has fewer moving parts, fewer opportunities to make catastrophic mistakes, lower capital requirements and much better margins. In other words, if your plumber, the owner of your favorite eatery, the florist and whoever owns your favorite clothing store…if they can figure out how to run their business and earn a great living at it, then you can certainly learn how to manage a small law firm that will serve your financial, your personal and your professional needs. It’s just not that complicated. But not all of those business owners run their businesses well. And not all of them are successful. The difference is, the owners of the successful businesses in each of those categories either went to business school, or else they invested in some alternate sort of education other-than the school of hard knocks. Because the school of hard knocks is terribly inefficient and has many hidden costs the student doesn’t often discover until it’s too late. That’s why those of us who have graduated from the school of hard knocks will tell you that anyone who knowingly enrolls in our alma-mater when there are easier, less painful, more profitable, and quicker ways to learn how to do whatever it is that they need to learn how to do…well, I don’t know how else to say it, those people are idiots. Wouldn’t you agree? If you were standing in front of me right now I know you’d be nodding your head in agreement. Or would you advise one of your own kids to skip school and just get a job because eventually they’ll figure it all out on their own? Of course you would never give anyone that advice. Because you’re NOT an idiot. Then why haven’t you dropped-out of the school of hard knocks sooner? Probably it’s because you’re scared that you can’t learn this stuff any other way. You’re worried that you don’t have enough time. And you’ve heard too many arguments, excuses and justifications made by other lawyers whose fears, insecurities and/or lack of self-confidence prevented them from ever learning how to manage a small law firm. So now they have a vested interest in convincing others that it’s impossible.  And now as perversely irresponsible as it may seem, they’re actually going around advocating for the school of hard knocks. But it IS possible to learn how to manage a small law firm and become the cause of a successful law firm that generates as much profit as you’re ready to commit to building for yourself and your family. Not only is it possible, it’s actually quite straight-forward. In fact just about any lawyer with an open mind can master the skills needed to create a $250,000 law firm in just about 18 months or less. Or even upgrade to a $500,000 law firm business if that’s what you want. You might even choose to build your business up and break the 7-figure barrier. There are simply too many examples of lawyers who DID learn how to manage a small law firm and now they’re enjoying great success at it. As I wrote before, there are relatively-few moving parts involved in making a law firm run well. It’s all about creating processes, systems, policies, procedures, and metrics: 1.) There are processes, systems, policies, procedures & metrics for getting prospective new clients to the door. 2.) There are processes, systems, law firm policies, procedures & metrics for moving prospective new clients through the front door & over the threshold at which point they can become profitable clients of the firm. 3.)  There are processes, systems, policies, procedures & metrics, for delivering value to clients.  This is the “factory” we talk a lot about when a lawyer is ready to upgrade from having a practice to building a sustainable law firm business Usually that conversation begins to happen around the $250,000 milestone. 4.) There are processes, systems, policies, procedures & metrics for controlling the finances of the firm and ensuring the firm gets paid for delivering value to its clients.  By the way, this idea that they’re clients of the “firm” vs. clients of the lawyer, is another key distinction between lawyers who create a practice -vs.- those who upgrade to the mindset and activities of building a business.  This also happens around $250,000. 5.) There are processes, systems, policies, procedures, metrics and inventories used for managing the physical plant which includes where the value gets created, with what equipment and by which human resources of the firm. Any educated lawyer can learn how to manage a small law firm and take control of these five areas of the law firm to create a $250,000 law practice; upgrade to a $500,000 law firm business; break the 7 figure barrier and even join the million dollar solo lawyers’ club if you’re that ambitious. But you’re going to have to learn how with the help of an accounting plan bootcamp. And it starts with having a thought-out, written, actionable, BUSINESS PLAN. There’s simply no way around it- you MUST have a business plan if you are running a law firm. A written business plan lays out the 7 Main Parts of your law firm, and the processes, systems, policies, procedures, and metrics needed to make sure each part is running as efficiently as possible. The truth is, that a lack of a business plan may be the one thing holding you back from the life, business, and career you’ve always envisioned for yourself.   Click here to sign up for the Law Firm Business Plan Bootcamp today, and start running your law firm like a successful small business that meets your needs and the needs of your family. 

4 Things You Do Every Day in Your Law Firm

4 Things You Do Every Day In Your Law Firm

A few years ago I got a chance to visit the La Brea Tar Pits just outside of Los Angeles, California.

If you’re not familiar with the La Brea Tar Pits, basically what has happened is that natural asphalt- or tar- has seeped up through the ground over tens of thousands of years and created these tar pits that were basically a trap for any poor animal who got too close and fell in.

I found it to be a perfect metaphor for so many lawyers who are stuck in the “trap” of running their law firms by the seat of their pants, sinking farther and farther down, year after year.

Check out a video of my visit here.

Keep in mind this video is almost 6 years old. As we have proven time and time again here at How to Manage a Small Law Firm, A LOT can change in 6 years.

For example, in the video we talk about the “4 Stages of Growth”, but our membership has grown so much and includes such high-revenue law firms that we now have 6 Stages of Growth.

But what the video does talk about that I really wanted to share with you are the 4 activities that you do every day in your law firm that you likely aren’t even aware of.

Every time you do something in or pertaining to your law firm, it will fit into one of these categories. The category you fit into the most likely determines what kind of life you are providing for yourself and your family.

Category 1- Any action that actively drives your law firm forwards towards your financial, personal, professional goals.

Anytime you are building marketing systems, delegating tasks to someone else, or analyzing financials and making strategic decisions based on those analytics, you are actively taking action to drive your law firm towards your goals.

As you might imagine, this category is the most conducive to growth and increased revenue. This is the sweet spot; you want to be here as much as you can.

The second category is similar, but with one key difference:

Category 2- Any action you take that PREPARES you to take action that actively drives your law firm forward.

While the first category is where you want to be the most, this category is also very important.

When you are doing something that prepares you to take action that actively drives your law firm forward, you are planning for success. This may include any time you are doing things like updating key internal/external policies, analyzing your financials and planning/preparing for cash crunches, or training someone on your staff with made-up work so they can learn without messing something up and freaking you out.

This is important, because before you can take action to drive your law firm forward you have to properly PREPARE to take that action.

The third category of activities is where many lawyers get stuck, and most of them have no idea how to escape it.

Category 3- Any action that contributes to your law firm just treading water.

Many lawyers end up here just trading dollars for hours, being a “lawyer” and not getting anywhere. If you run your law firm without a business plan, this is probably, unfortunately, the best you can hope for.

If you’ve been stuck around the same revenue for the last few years and just feel like no matter what you do you’re just spinning your wheels and working harder for no more money, then you probably spend most of your time in this category.

This is also an important category because there are only two ways to go from here… you can either get fed up with treading water and prepare to take action to move your law firm and your life forward, or you can unfortunately go the other way:

Category 4- Any action that actively holds you BACK from achieving your goals.

This is the category you are in when you start to find yourself hanging out with people who don’t believe in themselves.

When you hear lawyers bitching about the economy or the job market or any other bullshit they feed themselves for why they are failing in their business, you are witnessing category 4 behavior.

These are the lawyers who don’t have a successful law firm, but they have a great story as to WHY they don’t have a successful law firm.

This is where you are when you are taking cases and matters you KNOW you shouldn’t take, because you are desperate for the cash flow.

Anytime you perform a menial task instead of delegating, you are actively holding yourself and your firm back from your goals.

These are the lawyers you see “stuck in the tar”, sinking further and further year after year.

Click here to watch the video.

So which category of activities would you say dominated your 2019?

If you’re running your law firm without a business plan, then I would venture a guess that you are mostly a category 3. I wouldn’t put you in category 4 quite yet because you are engaged with us and reading our blog, which shows that you have the intention of eventually leaving the excuses behind and embracing what is really possible in your law firm.

But if you still haven’t signed up for our Law Firm Business Plan Bootcamp yet, why not?

Is it because of the price? We are offering a 100% Money Back Satisfaction Guarantee, so you can be confident you are investing in your business wisely.

Think you don’t have time? The Law Firm Business Plan Bootcamp is just a 4-week crash course- think about it, that’s one month…

One month to go from having no process or financial controls, to having a written business plan that lays out all 7 Main Parts of your law firm so that they are all working together efficiently and in harmony.

2019 is almost over, but if you act now you can step into 2020 with a clear vision for growth and a written business plan to execute it.

It’s time to stop treading water.

You started your law firm because you had standards.

Standards for what was acceptable for your life.

Standards for what was acceptable for your spouse’s life.

Standards for what was acceptable for your kids’ lives.

Standards that thus far have not been met, because you don’t have a business plan.

Click here to sign up for the Law Firm Business Plan Bootcamp today, and start doing things in your business that drive it forwards towards success and a lifestyle that is acceptable for you and your family.

Beware Your Negative Routines

When you think of the word “routine”, what comes to mind? Maybe you think of your morning routine, and everything it takes to get your family fed and out the door on time, day after day. Perhaps you think of your daily routine of waking up, going to work, getting frustrated, coming home, going to bed, rinse, repeat. Maybe the word “routine” makes you think of organization… “I have to be at work at this time and I get out at this time and I need to pick the kids up from practice by X…” and so on and so forth. Whatever your thoughts about the word “routine”, you probably find comfort in it. We humans crave the sense of security and stability that comes with knowing where you’re supposed to be and when, and what’s going to happen when you get there. But are all routines positive? One of the first thing the CIA teaches new recruits is to beware the dangers of having a routine. Routines make you predictable. Predictability is vulnerability, and that makes you an easy target. And that’s not all- ever called to make a change to your automobile insurance? One of the first questions they ask you is whether you drive your vehicle to and from work every day. If you answer “yes”, they will underwrite your policy HIGHER than someone who drives their vehicle the same number of miles, but just to drive around town for pleasure. You may ask why? When I know the traffic patterns and the safest route to and from work, and the other guy is just cruising around aimlessly enjoying his ride? How could I possibly cost more to insure than him? Because when you are driving to work every day, taking the same route 10 times per week, you may think you’re more insurable because you’ve “perfected” the route, but in reality you face one of the biggest dangers of routine there is- complacency. Complacency is insidious and pervasive because it’s comfortable. Complacency can cost you years of your life if your routine will not allow you to make necessary changes. Complacency is what keeps your law firm at the same level of growth (or non-growth) year after year, with no real increase in revenue to speak of. Complacency is easy. It’s comfortable. “I may hate the way my law firm makes me feel, and I may be working 50-60+ hours per week for little or no pay, and my family may miss me and I never get to see my kids, but dammit at least I know where I need to be tomorrow and what I’ll be doing!” You need to identify these negative routines that have become a liability to your personal, professional, and financial growth. What change are you resisting because it would be too much of a disruption to your “routine”? How much would your life improve if you were to break free of these negative routines that keep you confined to a life of spinning your wheels aimlessly in your law firm? If you want to know more about what How to Manage a Small Law Firm can do to help you shed these negative routines and adopt more positive ones, please schedule an appointment with a member of my team. Make “growth” a part of your new routine.

Top 10 Reasons Your Law Firm Needs a Business Plan

Last week, we began our 3-part interview series with some of our most successful members, entitled:

The Truth & Nothing But The Truth About Starting, Growing and Running a Really Successful Law Firm.

In it, I’m interviewing 3 different How to Manage members about a different topic each session, and they share their experiences and best practices on the topic.

It’s been HUGELY valuable and really eye-opening, but depending on when you are reading this you may have already missed the first 1 or 2 sessions. Not to worry though, you can still catch a replay!

Click here to hear a replay of the interviews you missed.

We tried to keep the atmosphere light and fun, and we didn’t really follow any kind of effective law firm script. The first interview series was all about the importance of creating and executing a written business plan that can help you expand your law firm business.

There was one fun moment I wanted to share with all of you since it can be extremely helpful for those of you who are struggling to keep your head above water in your law firm.

Like I said, if you haven’t heard the entire interview, click the link above and go back and listen to it, the amount of value in those interviews is immeasurable.

We had some fun though, too.

Towards the end of her time, Meldie Moore made a joke about creating a “Top 10” list for all the reasons your law firm needs a business plan.

So I held her to it!

You could tell she thought she was off the hook halfway through, but no- she finished the list! (with an assist from Holly)

So without further ado, and with apologies to David Letterman, here are the top 10 reasons your law firm needs a business plan:

  1. A written business plan allows you to sit down and form a clear picture of where your business is right now and what kind of shape it’s in.
  2. It allows you to set future goals and create a plan to achieve them.
  3. It provides the accountability you need to get things DONE.
  4. Research says that once a goal is written down, it’s more likely to be completed (this was a big one for Meldie, the research buff!)
  5. Sharing it with your staff and significant other gets you on the same page with them and can help to bring the team together.
  6. If you are working with a CEO, COO, or CFO (and depending on which stage of growth you are in, you should be!), it gives you the ability to show them where you are, where you’re going, and what your goals are.

And here’s where Meldie began to stall out and thought she could get out of finishing the list… no way! Holly Moore (no relation), who was waiting for her turn to be interviewed, jumped in and helped out…

Continuing on with our list:

  1. A business plan gives you the comfort of knowing how it’s all going to work out, instead of just “hoping” it does.
  2. It allows you to be confident that you will actually reach your goals because you know there is a plan in place to do so.
  3. It helps you be able to run a business effectively instead of JUST practicing law.

And the number 1 reason your law firm NEEDS a business plan:

  1. It will help you serve your clients better.

And honestly, that’s reason enough to take the time to create a clear, written business plan.

One thing all three members agreed on was that lawyers tend to have this mentality that they don’t NEED to have a business plan, because that’s “business stuff”. They think that any time spent doing “business stuff” is time taken away from their clients, so they continue to work more and more, harder and harder.

But the fact is that a written business plan allows you to spend your time on the things that matter most, so that you can actually free up MORE time for your clients.

THAT’S the big disconnect that most lawyers have. They don’t realize that running a multi-million dollar law firm is actually LESS work than running a $250k law firm, not more!

The ones that get that are the ones that have a written business plan and they are also the ones who are most successful and spending the most time with their families.

If you want our help getting started on YOUR business plan, click here to download your own FREE copy of the Business Plan Workbook.

If you think you may need help filling it out or want to know more about what How to Manage a Small Law Firm can do to help you increase revenue while also increasing your quality of life, please schedule an appointment with a member of my team.

Achieving 3 Key Milestones for Million-Dollar Law Firms

3 Milestones Every Million Dollar Law Firm Experiences

Last week I had the pleasure of spending 4 days with 9 members and their significant others, out on the boat getting SCUBA certified. It was an absolute blast.

As is often the case, we began reminiscing on our respective journeys, what we had experienced, where we are now, etc.

We talked a lot about our families and how much we appreciate the lives we are able to provide for them. We also all remember a time when things weren’t so happy at home.

Before we discovered how to be successful, we spent our days, weeks, months, and years running on the hamster wheel to nowhere, like many of you.

As we were having these discussions and brainstorming what it took to get where we are, we all came to the realization that in our own personal way, we each took kind of the same path to get here.

It may have looked different for each of us or happened at a faster or slower pace, but we came to the conclusion that each one of us ticked three specific boxes at some point in our journey.

These are the 3 milestones that every successful million-dollar law firm experiences on their way to freedom.

  1. You Have to Operate Under a Written Business Plan

This step is so basic. You either are a real business and you have a business plan, or you don’t and you are not. It’s that simple.

And I’m not talking about something you slapped together in 2 hours just so you can say you have something.

I’m talking about a clear, organized, and functional business plan. Your business plan needs to describe each of the 7 Main Parts of your business clearly, so that each person on the team (including yourself) knows exactly what they are responsible for and is held accountable.

How to Manage a Small Law Firm provides some free resources including a Business Plan Workbook to help you create your own functioning business plan. Click here to receive your complimentary Business Plan Workbook dedicated to law firms.

  1. You need to let go of the bullshit and the excuses you constantly feed yourself.

During our discussion, we all agreed this was the step that people get stuck on the most, but it’s also the most important.

It’s easy to say you don’t have the money. It’s simple to tell yourself you don’t have the time. These are not original thought processes.

These excuses will keep you stuck in the same cycle you’ve been in for months or years, but you’ll tell yourself you’re okay with it because it’s “familiar”. And you’ll confuse familiarity with comfort and nothing will ever change.

Finally saying “to hell with these excuses” is a difficult step, but it’s the most freeing when you actually take it.

Bringing us to our last milestone…

  1. You begin to appreciate all the ways a healthy business with predictable growth impacts your family and personal life and you clarify your VISION.

This is clearly the most enjoyable of the three milestones to experience, but it would not be possible without meeting the first two.

It’s different for everyone, but listening to the members talk about this milestone to reach a high-earning law firm was very powerful and a bit emotional.

We began the conversation talking about the places we had come from, so those stories were still fresh in our minds. I don’t mind telling you that when I think about what I have now compared to when I was flat broke with 4 flat tires and no money for groceries, it does something to my heart.

I can only describe it as an intense gratitude, and the other members agreed with me.

We all have our own measure for success, but you could imagine a few things kept coming up…

  • Time spent with a husband or a wife
  • Ability to watch your kids grow
  • Vacations with your family
  • School functions
  • Date nights

These are the reasons why we do what we do. These are the things that make life worth living!

These people were able to take a week away from their firms and come down to Miami to get SCUBA certified and strategize for their business because they set themselves up with a PLAN that allows that kind of freedom.

It’s a plan they made up. Think about that. They didn’t win some lottery and get handed a plan. They chose it. They dreamed it up. And they wrote it, made it real and follow it.

And you can too.

If you want to know more about what How to Manage a Small Law Firm can do to help you hit these milestones, please schedule an appointment with a member of my team. They’ll be glad to answer all your questions and help you provide the life you’ve always envisioned!

DIVE into Massive Business Growth!

4 Things SCUBA Diving Can Teach You About Business Success

I have really been looking forward to this week, partly because this week is a tangible representation of what can happen for you if you get serious about creating a plan for profit and freedom.

We are taking members out on the boat to do some SCUBA diving, and by the end of the week we’re all going to be SCUBA certified!

Many people don’t know this, but SCUBA is actually an acronym, it means:

S – Self

C – Contained

U – Underwater

B – Breathing

A – Apparatus

As I was preparing the boat for a busy week on the water, I got to thinking about SCUBA diving and realized there are a lot of similarities between SCUBA diving and running a business!

Here are 4 ways that learning to SCUBA dive can help you dive into profitable change.

  1. When you go SCUBA diving, you are carrying your own self-contained source of air to breath.

This is so you can move independently and freely, without worrying about constantly being tied down to an air source.

When you run your law firm like a successful small business, you gain an enthusiasm about your new life of complete personal responsibility that allows you the same freedom and independence.

You are no longer tethered to your business every day in order for it to run effectively (or at all), which allows you the freedom to step away from your business whenever you need or want to- as our members have done this week so they can hang out on the boat with me!

  1. Along with your self-contained air source, there is other equipment you’ll need in order to have a safe, efficient, and enjoyable dive.

SCUBA diving involves more than just a self-contained air source. In order to be certified as my members and I will be by the end of the week, you have to understand all of this equipment and the function it performs:

  • A mask– to improve underwater vision
  • Exposure protection– to protect you from the cold water below the surface
  • Buoyancy control equipment– to allow you to control your descent/ascent
  • Snorkel– for swimming on the surface

If any of this equipment is not present, then none of the rest matters or works efficiently.

This is similar to the policies, systems, and 7 Main Parts of your law firm which, when used correctly, are the tools you need to create a profitable, enjoyable, and efficient law firm.

When you have all the equipment for SCUBA diving, you can enjoy a safe, efficient, enjoyable dive. When you have all the policies, systems, and 7 Main Parts of your law firm in place and working together, you can enjoy the life you envisioned for you and your family.

  1. A diver must monitor the depth and duration of a dive to avoid decompression sickness.

Decompression sickness is no joke.

Unless the maximum depth of the dive is quite shallow, a diver must know exactly what depth he is at and must not surface too quickly.

Otherwise they may suffer decompression sickness, which is caused by the formation of nitrogen bubbles in the tissue of the body, due to a sudden reduction in pressure (decompression).

This can cause extreme pain in the muscles and joints, cramps, numbness, nausea, and even paralysis.

Similarly, in business you can guess and project accordingly, but without knowing the REAL numbers the results can be disastrous.

It’s always best to be monitoring these numbers continuously. You can’t manage what you don’t measure. Know your numbers, HIT your numbers.

  1. All SCUBA dives are carefully planned to ensure divers do not exceed their comfort zone or equipment capacity.

The purpose of dive planning is to ensure divers stay within their skill level, and also includes scuba gas planning which ensures that the diver brings enough air not only to safely complete the dive as planned, but also to allow for any contingencies needed during the dive.

In the same way, your business plan ensures that each of the 7 Main Parts of your business is optimized and performing at full capacity.

When written and utilized correctly, a solid business plan ensures that your level and pace of growth is appropriate for your current stage of growth.

It’s vital that you plan and find appropriate guidance when creating your business plan, so that you are prepared for anything that might come.

If you want to know more about what How to Manage a Small Law Firm can do to help you with your business plan so that you can one day step away and get SCUBA certified (or anything else you want to do!), please schedule an appointment with a member of my team. They’ll be glad to answer all your questions and help get you on the road to success!

And if you want to get a jumpstart on your own business plan, you can download a FREE copy of the Business Plan Workbook right here.