When will you start making money in 2009?
As I recall it, my old law firm split used to be 1/3 for overhead like rent etc, 1/3 for salary and then, and only then, 1/3 for profit.
That is; P=R-E (profit equals revenue less expenses)
Going into a new year, this meant partners only started making money around June or later! I suspect any firm still on these metrics is struggling.
So what's an acceptable costs/profits split for the jobbing mediator?
My Scottish ancestry spoke to me the moment I left my law firm a decade ago when I realised it was my money I was about to spend on that printer, that pot plant, those paperclips - and as a result I have always attempted to run a lean operation - outsourcing where I can and being content with adequate but not OTT premises.
My challenge to solo mediators in these troubled times - start making money by the second month of your financial year - that is, earn enough from your first month to pay your practice expenses for the year and take the rest home.
Can do?
See also;
1. Flying Solo?...then don't travel coach
2. Bruce Judson's must read book for all acorns with aspirations of oak trees, Go It Alone...and its in full text on the web!
1 comment:
Maybe this is a difference in cultural idioms, but a what plant?!?
To answer your question, I am getting worried whetner I will make any money as my February calendar is wide open, the administrator for the Court program that is the main source for my cases is leaving and Uncle Sam will have his hand out before I know it (probably both hands now that "you know who" is in charge). I might go back to at least a part-time practice of law. My challenge is not expenses, its revenue sources. After two years, I am not seeing any referrals and have to wonder - is it the economic slowdown or am I doing something wrong...
Sorry. Didn't mean to vent.
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