It’s been a while since I’ve done videos, but you know, they always come in spurts and things were surprisingly calm there for a little while.
We had rapid, rapid, rapid change, about three months ago and that pace of change wasn’t sustainable. So I’ve got a couple of things I want to talk to you about, and I am going to break them into two videos. First, I want to talk to you about leverage and I want to talk to you about cash. So I’ve already discussed, that Modern Law applied for and received PPP money. And I believe I’ve also discussed the fact that we were offered and EIDL money. So what does that mean? That means I have effectively more cash than I’ve than I’ve ever had before in the bank.
And the thing to ask yourself is, okay, how much cash is enough and what to do I do with all this money? And I’ve never really taken any business classes at all. But I was talking to a friend of mine who is in an MBA program about leverage. Leverage is the idea that we want to be able to use more than just our cash in order to grow businesses. And that’s what legitimate businesses do is they leverage other people’s cash to grow their business. Now, how do they do that? And how do we as a law firm do that? Well, most of the time, if you’re a manufacturing plant, you borrow money to buy equipment that allows you to make more of what you’re manufacturing. So you can leverage that money to buy something that will make you more money.
How does that get applied in the law firm?
Two ways. Number one, what is our piece of equipment that we can buy? They can make us more money. It’s lawyers. So each lawyer should be a profit generating center for for you as the law firm owner. And if, if that’s not happening, then we have to watch some other videos and talk about what’s going on in your business model. Because that’s, that’s how it should work.
So you, one of the things that you should be doing, if you’ve got the cash and you’ve got a business model that’s working, isn’t always a great time to look at hiring and that’s going to be the next video that we talk about is how to hire, which has plagued my existence for many years. And so we can talk about that because I think I’ve made so many mistakes that I can happily pass them along to you and let you know how to not make the same mistakes that I’ve made.
So that’s number one, you can leverage the cash that you have by hiring as long as you’ve got, you know, a good marketing engine and a good operational model. That is one of the things that you should be looking to do during this pandemic.
Number two is office space. Can you, do you have the ability to lease more office space than you might need, and then sublease out to other people who can pay your rent? Do you have that ability? Those are the two ways that you can look at leveraging other people’s money to help you and your law firm make money. And I’m doing both and working on a really fun expansion project, regarding office space. And I’ll let you know how that goes every step of the way and working on hiring. So, if your law firm is not growing during this pandemic, you probably miss some of the things that I talked about earlier, and it’s going to make sense to go back and watch some other videos or reach out because I can help you.
There’s literally so much opportunity right now for you, for lawyers, for law firms, and we’re well positioned and you should be well positioned to take advantage of everything that’s going on in this market. So next video we’re going to talk about is hiring, which is key, but don’t forget to subscribe and we will talk to you soon.