Can You Afford to Hire? with Ryan Kimler

In this episode, Alay and Ryan discuss:  How much do you pay new hires?  Profitable versus scalable when looking at new employee expenses and incomes. Properly building cost centers into your business.  Specific guidelines and benchmarks for hiring different positions in your organization.   Key Takeaways:  Look at what a competitive salary in your area for the position is as the base.  401(k), taxes, insurance, and other benefits are all part of the employee’s cost, not just their salary. In your law firm’s expenditures, the overhead category is typically where you can return some of the percentages of your profits to your business.  Having a net income of 20 to 25% will typically ensure that you’re going to have a positive cash flow.    Tweetable Moments: “Everybody has goals for yourself, and a certain level of compensation and cash flow is really what’s going to get you there.” —  Ryan Kimler “The true cost of that employee is probably going to be somewhere if you mark up their salary by 20-25% to 50% on the high side, you’re going to have their full cost mostly captured, and maybe even some to spare.” —  Alay Yajnik “I typically work with firms and have them shoot for a consistent profitability of 20 to 25%.” —  Ryan Kimler “As your firm grows, that does take cash.” —  Ryan Kimler    About Ryan Kimler:  Ryan is the Founder of Net Profit CFO. A Financial Services Firm bringing clients clarity and guidance, giving them one clear path to having a growing, more successful and more profitable business. We provide business owners with an Outside CFO guide to help them understand what is working in their business and what is not. We give owners the tools they need to make corrective actions to meet their goals and objectives. Ryan double majored in Accounting and Finance at Illinois State University. After College Ryan worked at a CPA firm with a wide range of small business clients. Ryan has since started his own firm and has specialized in working with attorneys for over 6 years and has helped more than 200 law firms. Working with attorneys is my passion. I have found that attorneys seem to be really underserved by the accounting and finance community. Most accountants waste Attorney’s valuable time by explaining and reviewing, Profit and Loss or Income Statements, and Tax Returns. Instead, attorneys need clarity and clarity to move their business forward, make informed financial decisions, meet their goals, and improve profits.   Connect with Ryan Kimler:  Website: https://www.netprofitcfo.com/ & financialclarityllc.com  Email: [email protected]  LinkedIn: https://www.linkedin.com/in/ryankfinancialclarityllc  Podcast: https://netprofitcfo.com/podcast/    Connect with Alay Yajnik:  Podcast: http://lawyerbusinessadvantage.com/  One Page Strategic Plan: LawFirmSuccessGroup.com Email: [email protected] LinkedIn: linkedin.com/in/alayyajnik