The Revenue Trap: Why High Sales Don’t Always Mean More Cash in Your Bank
John McCarthy
Helping Law Firm & Legal Tech Owners unlock ￡100K extra profit in 6 months, build a highly profitable, valuable business & plan for exit with the PROFIT System. DM me “SUMMIT” to boost your profits!
This Week We’re Looking At…
Why growing revenue isn’t always the answer - and how you can increase profit without working more hours.
Stephen was Stuck on the Hamster Wheel?
When I first met Stephen, his firm was growing at 10% per year.
The trouble?
His expenses were also growing by 10% per year.
He was working harder every year, yet not making any extra profit. So, as his firm grew, it needed more cash to fund growth - he had to keep borrowing more and more just to fund growth.
The result:
? Flatlined profits
? Tight cash flow
? Longer hours
? Stressed-out Stephen
Sound familiar?
I see this regularly with law firms. The team is working hard but the profits and cash flow aren't where they could be.
Let’s break down why this happens.
The Chasing Revenue Trap
Ever feel like you’re running faster, landing more clients, bringing in more revenue… but your bank balance doesn’t reflect that success?
That’s the “Chasing Revenue” trap. Many law firms mistake "busyness" for "business" - but revenue alone isn’t the goal - profit and cash flow are.
Here’s why high revenue can be misleading:
?? Slow-paying clients – Cash is tied up in unpaid invoices.
?? High cost of service – Expensive lawyers doing low-value work.
?? Overspending on marketing – No clear ROI on business development or marketing spend.
?? Inefficient case management & staff management – Wasted time, lost profits.
?? No financial forecasting – Revenue looks great, but cash flow is unpredictable.
Working hard to generate more revenue without fixing these issues = more stress, more work, and no real financial gain.
The Fix: Stop Chasing Revenue & Start Maximizing Profit
The good news? You don’t need to work harder—you need to work smarter.
Here’s what Stephen did to break free from the revenue trap and his results:
?? Month 1: Focussed on cash flow and profits, not revenue - he was able to cancel a ￡30K business loan because he didn’t need it anymore!
?? Month 3: Set up marketing KPIs and cash flow forecasting - marketing ROI went from zero to 1:3, then on to 1:10- ROI !
?? Month 6: Optimized efficiency and reduced wasted time - happier team and improved customer service.
?? Year 1: Doubled his profit and cut his working hours in half - business became a lot of fun again.
?? Year 2: Took a 2-month holiday on the other side of the world without needing to reply to phone calls or emails - something that was impossible only a few years ago.
?? Year 3: Hit ￡1M net profit - 400% increase working a fraction of the hours.
?? Year 4: Spent more time on holiday than he did at work - when you have enough time and money you have more choices :-)
领英推荐
?? Year 5: Achieved ￡2M net profit—without working crazy hours.
The key? He focused on profit and cash flow, not just revenue.
Want to See Exactly How Much Extra Profit You Could Make?
Most law firm owners think they know where their profits come from… but when they see the real numbers, they’re shocked.
That’s why I created the “Practice Profit Booster.”
This free profitability review will show you:
? Exactly how much profit each department and fee earner is generating.
? Where you’re actually making money (and where you’re losing it).
? The areas to focus on for maximum profit - while working fewer hours.
If you want to take control of your firm’s profitability, send me a direct message with “Profit Booster” and I’ll set up your free review.
Your FREE Profit Review:
? Stop chasing revenue - start maximizing profit and reducing your working hours.
? DM me “Profit Booster” for your free review.
Let’s make 2025 the year you work smarter, not harder.
Find Out How to Gain an Extra 100K Profit in the Next 12 Months
I’m John McCarthy, the Law Firm Profit Sherpa.
I support owners of law firms to scale their practices, grow revenue and profit, and increase the value of their business by following the proven P.R.O.F.I.T system (all whilst working fewer hours & having more fun).
Would you like a FREE ticket to the below online event?
It's specifically for owners of law firms.
"How a Law Firm Owner Made an Extra ￡1 Million Net Profit in 3 Years and Halved His Working Hours in 12 Months"
Wednesday, 26th?February 2025
4:00 – 5:00 pm UK? / 11:00 am EST
For further information follow this link:
If you want to discover exactly how you can increase your firm's profits by at least ￡50,000 - ￡100,000 and be able to work at least 10 hours less per week, all within the next 6-12 months, book a 15-minute call here:
Have a successful week!
John
·??????? Global Outstanding Client Results 2022
·??????? Global Outstanding Client Results 2023
·??????? Global Coach of the Year 2024
·??????? EMEA Client Employee Engagement Winner
I help ambitious business owners scale from 6 to 7 figures, building a profitable, cash-rich business that lets them live life on their terms—while working fewer hours, having more fun, and following a proven system
2 周Now thats what you call a result John ??
Cyber Security & Intelligence Professional | Partnering with North American Cyber & Tech Leaders to Source Talent in 14 Days and Avoid Costly Bad Hires | Tech-Enabled Consultant | Unicorn Skills Stack
3 周Very insightful article! Most businesses can relate to the revenue trap!