What is an “outside Managing Partner”?
You know what an outside general counsel is, right? Same concept. Every law firm needs a managing partner in order to operate at its best.
The trouble for the owners of single-shareholder small law firms is that you can’t (shouldn’t) try to be your own managing partner. You shouldn’t (better not) try to get your spouse or significant other, to function as your managing partner. And you’d have to be a real idiot to try and get a member of your staff who depends on their salary, to be your managing partner because that’s almost as bad of an idea as asking your spouse or significant other to fill that role for your firm!
Seriously, if you’ve never experienced the confidence and clarity about your business and your future that comes from working with an experienced managing partner for your law firm…quite literally you just don’t know what you’ve been missing.
Watch some of our testimonials here to see for yourself that our clients are raving fans:
They’re entrepreneurial, have above-average ambitions to build a successful law firm, they’re lawyers who believe in themselves enough to give themselves access to the best resources available and surround themselves with winners. And they are all people who have a sincere desire to discover the true limits of their potential.
If this seems like the sort of peer group you’d like to have and you’re ready to have an experienced Managing Partner in your corner, please click here to learn more about our program and how we can help you turn your law PRACTICE into a thriving legal BUSINESS
What is an “outside COO”?
The most efficient businesses depend on systems. Systems are made up from thought-out policies, processes and procedures. In large firms this is the job of a Chief Operating Officer.
They’re the “engineers” who make sure jobs are well planned-out for maximum productivity and accountability. A Team players like accountability. And they thrive (read, they’re more profitable and productive) in an environment with documented policies (rules) and procedures (instructions).
The problem is, an experienced COO earns six figures. And even if the owner of a solo or a small law firm were inclined to step-up to hire an experienced COO to make sure their business runs more like a machine and less like a fire drill the fact remains that a good COO would be bored silly if all he or she had to do was attend to the needs of a small law firm with revenues under about five million dollars.
That’s why How To MANAGE a Small Law Firm outsources the job of COO for our Members with law firms grossing at least $250,000 (about $20,000 per month). The first thing that is going to happen is your assigned outside COO will conduct a diagnostic and assign a grade to your firm for it’s quantity and quality of what we consider to be the most critical internal policies, the most critical outside policies and the most important operational procedures that contribute to your firm running smoothly and profitably.
Then, based on the results of this diagnostic and using our proprietary process a customized plan will be proscribed to help you identify, think-through, document and implement professional quality policies and procedures in your law firm so it runs more profitably and with more predictability. And each month you will be inspired when you have your scheduled meeting to review the work that was done on your behalf in the last 30 days, discuss your preferences for the next item on the “punch list” and to get some coaching and practical advice for implementing your new way of improving your business.
What is an “outside CFO”?
Every law firm runs more profitably when someone is wearing the hat of a Chief Financial Officer.
Which is a very different job, requires different training, experience and vantage point than is normally afforded even the best bookkeepers or financial accountants. Financial accountants focus on taxes, public reporting of corporate financial data (shareholders, taxing authorities, etc.).
Management accountants (which includes CFO’s) focus on the analysis, interpretation and management decision making based on company financial data. Bookkeepers enter data and produce reports. Financial accountants advise how to reduce tax liabilities and ensure taxes are paid. Management accountants build and manage forward looking projections, forward looking cash flow analysis, reduce accounts receivables, advise on pricing strategies, compensation plans, and the overall profitability of the law firm.
Growing a law firm up past about $500,000 in gross revenue (about $40,000 per month) is a big accomplishment. Making sure you have bottom line profits to show for your work and propel the firm past The 7 Figure Barrier is the job of your firm’s CFO. Except of course if your firm is grossing less than about ten million dollars per year, it’s probably not cost effective to employ an experienced CFO for your law firm.
That’s why too many owners of solo and small law firms never break The 7 Figure Barrier. That’s why How To MANAGE a Small Law Firm provides outside CFO services for our Members with small law firms grossing more than about $500,000 per year. Your assigned outside CFO will work with your bookkeeper to ensure the six key financial reports are being properly prepared each month for analysis. Then each month you and your assigned outside CFO will have a scheduled call to review, analyze, make sense from and make decisions based upon sound financial data. Your firm will be more profitable and more predictable and you will feel more empowered than ever.