BE THAT LAWYER

Nov 14 2024 32 mins

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In this episode, Steve Fretzin and Brian Zapf discuss:

Financial planning and metrics for law firms
Importance of strategic investments and cost control
Leveraging financial storytelling for decision-making
Best practices for client and revenue management

Key Takeaways:

In addition to revenue, law firm owners should track net income and cash flow, as well as specific KPIs like effective hourly rates and client lifetime value to fully understand profitability.
Payroll should be about 40-45% of revenue; excessive payroll spending can prevent firm growth and profitability, especially if partners or staff are not contributing proportional value.
Firms should aim to bill upfront where possible and maintain timely follow-ups on accounts receivable to reduce cash flow issues and avoid prolonged collection struggles.
Undercharging for services can lead to rapid client acquisition but may indicate undervaluing; regular market assessments can ensure competitive and profitable pricing.

"The financial story goes beyond just having a financial report that your bookkeeper might give you each month. It’s more about understanding where you are right now in your business and where you want to go." — Brian Zapf

Join Steve on November 15th for an exclusive 60-minute session focused on actionable strategies for business growth. Register now—seats are limited to the first 20 attorneys! Sign up here: https://www.fretzin.com/blog/category/events/

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Rainmakers Roundtable: https://www.fretzin.com/lawyer-coaching-and-training/peer-advisory-groups/

Episode References:

The Tim Ferriss Show: https://podcasts.apple.com/us/podcast/the-tim-ferriss-show/id863897795

About Brian Zapf: Brian Zapf is the founder and Chief CFO of Flight Financial, a fractional CFO firm that helps law firm owners master their financials through clear financial storytelling and strategic financial management. With a focus on improving cash flow, profitability, and business growth, Brian uses his background in accounting and finance to help lawyers turn their numbers into actionable insights. He has helped his clients focus on what matters, improve their firm's performance, and reduce their stress.

Connect with Brian Zapf:

Website: https://www.flight.financial/

Email: [email protected]

LinkedIn: https://www.linkedin.com/in/bdzapf/

Connect with Steve Fretzin:

LinkedIn: Steve Fretzin

Twitter: @stevefretzin

Instagram: @fretzinsteve

Facebook: Fretzin, Inc.

Website: Fretzin.com

Email: [email protected]

Book: Legal Business Development Isn't Rocket Science and more!