14: Investments vs. Expenses: The Key to Building a Thriving Business of Any Size

In this inspiring episode, Ali Katz talks with lawyer Kim Rockwood to explore the critical distinction between investments and expenses. Together, they delve into how understanding this difference can transform your law practice from struggling to thriving. Ali shares her journey of building a million-dollar practice, the mistakes she made along the way, and the mindset shifts that led to her success. This episode is a must-listen for any lawyer looking to grow their practice and achieve financial stability.

 

Key Takeaways:

• Understanding Investments vs. Expenses: Learn why distinguishing between investments and expenses is crucial for business growth and how to make decisions that drive long-term success.
• Mindset Shift: Discover the importance of shifting from a scarcity mindset to an abundance mindset to enable strategic investments in your practice.
• Leveraging Credit Wisely: Understand how to use business credit as a tool for growth and the importance of having a solid financial strategy.
• Building Confidence: Recognize the role of confidence in making business investments and how to develop it by meeting your fears and insecurities head-on.
• Partner Support: Gain insights on how to communicate with your partner about business investments and address any concerns or fears they may have.

 

By the end of the episode, listeners will have a clear understanding of how to make strategic investments that lead to sustainable business growth and financial stability.

 

01:41 Kim talks about her initial confusion about the difference between investments and expenses, emphasizing the need for deeper understanding in running a business.

 

03:00 Ali elaborates on the importance of buying back time through investments, such as hiring the right people and learning to engage clients effectively to generate results.

 

05:00 Ali shares a story about selling her law practice to an inexperienced business owner who cut essential expenses, leading to the downfall of the business due to a lack of client acquisition. 

 

12:08 Ali and Kim discuss the blurred lines between expenses and investments, using examples like postage and client experience to illustrate their points.

13:00 Ali shares her personal experience of building out an office on credit, which, despite initial fears, became a valuable investment that enhanced her client experience and business vision.