How to Forecast Your PI Firm’s Income and End the Feast or Famine Cycle (Ep. 174)
On this episode, host Darren Wurz explains how contingency-fee law firms can eliminate the feast-or-famine cash flow cycle through financial forecasting. He shares a practical framework for predicting future revenue by calculating the expected value, probability, and timing of each case, while also accounting for case costs, litigation timelines, and cash reserves.
Darren discusses:
- Why contingency revenue is difficult to predict?
- How to create a pipeline report for Case Management
- Managing Pre-Lit Pipeline and Litigation Pipeline
- Why you need to forecast beyond current cases?
- How to monitor cycle time.
- Use financing as a forecasting lever not a panic button.
Resources:
- Profit First – Transform Your Business from a Cash-Eating Monster to a Money-Making Machine by Mike Michalowicz (Book)
- Simple Numbers by Greg Crabtree
- Simple Numbers 2.0 by Greg Crabtree
- Law Firm Financial Reporting Template Pack (Exclusive content)
- Law Firm Profitability Assessment
- How to Calculate Your Law Firm Tax Reserve
- Get your Free Law Firm Audit
- Download Your PI Pipeline Forecaster!
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
- Don’t Miss a Thing! Subscribe to The Lawyer Millionaire® Email List
- Subscribe to The Lawyer Millionaire Youtube Channel
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