Profit First Pt 5: 7 Problems with Profit First That Drain Law Firm Cash Flow and Growth (Ep. 153)
Profit First is hailed as a brilliant cash management tool, splitting every dollar into accounts for profit, owner’s pay, taxes, and operating expenses. On this episode, host Darren Wurz explains why too many law firm owners treat Profit First like a total business strategy rather than a behavioral tool. The result? Fake profit, growing debt, and a business running on fumes.
You’ll hear stories (like Sarah, whose “profit” hid a mountain of credit card debt), clear explanations of where Profit First goes wrong, and practical fixes that will help you avoid the pitfalls. Whether you’re just starting to use Profit First, or you’ve been following it for years, this episode will help you get real about your finances and build a system that truly works for your firm.
Darren discusses:
- Fake profit is a real danger.
- Financial clarity beats financial discipline alone.
- Why law firm owners need to start with a business audit before implementing profit first?
- Seven ways profit first can go wrong in your firm.
- Why law firm owners need to fix business spending problems?
Resources:
- Book: Profit First – Transform Your Business from a Cash-Eating Monster to a Money-Making Machine by Mike Michalowicz
Connect with Darren Wurz:
- Want to work with our team? Schedule an Intro Call
- The Lawyer Millionaire Website
- LinkedIn: Darren P. Wurz
- Join The Lawyer Millionaire® Community
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