Building Your Law Firm’s Financial Safety Net With Frank Rekas

Why this matters

If you’re a law firm owner, you’re busy. Busy can hide risk. Busy can hide cash leaks. And busy can keep you from the two things you care about most: more profit and a smoother life. In this conversation with financial planner Frank Rekas, we unpack how niching, proactive tax planning, and real risk management create a stronger, calmer firm.

Real-life story: Two pros who “fell into” the same niche

Both of us “discovered” our niches by accident. Frank looked up in 2023 and realized 60%+ of his clients were attorneys and law firm owners—so he leaned in. I did the same after seeing that ~80% of my client base were law firms. The result? Content became easier, operations became clearer, and our work created bigger wins because we understood the same patterns, problems, and constraints our clients face.

Framework / Lessons

1) Pick a niche and speak to one person

• Clarity beats clever. When your audience is “law firm owners,” your content and services get sharper.

• A practical trick: define one ideal client (mine is modeled after Jake Brigance from A Time to Kill). Write every post to that one person—questions get easier, and so do answers.

2) Build your “Board of Directors”

No one advisor can (or should) cover every angle. Assemble a small team that collaborates:

• Fractional CFO (that’s me) for forward-looking cash flow, pricing, ops, and KPI visibility.

• Tax professional for proactive tax planning (not just filing last year’s history).

• Financial planner (Frank) for personal wealth, retirement design, and insurance analysis.

• Business attorney for entity setup, operating agreements, and buy-sell planning.

Expect disagreement sometimes—that’s good. Multiple angles, one goal: your outcomes.

3) Do tax planning, not December shopping

“Tax planning” isn’t buying random equipment on December 28. It’s a year-round plan to:

• Time income and expenses intelligently.

• Choose the right retirement vehicle (solo 401(k) vs. SEP, cash-balance, etc.).

• Avoid surprise tax bills and “amended return regret.”

A strong planner + a proactive tax pro will typically save multiples of the planning fee.

4) Protect the golden goose (risk management)

Law firms often under-insure the one asset that funds everything: the owner’s income.

• Disability insurance to protect personal income.

• Business Overhead Expense (BOE) insurance to keep the lights on if you’re out.

• Buy-Sell funding so partners and families don’t end up in court.

• Key-Person coverage when a rainmaker’s sudden absence would crater revenue.

You already insure cars and phones—protect the income stream that pays for them.

5) Track the right numbers (and ask the next question)

Start simple, then go deeper:

• Firm revenue vs. owner’s take-home (W-2 + distributions): “Where’s the money?”

• Compensation mix (are you paying yourself reasonably, or asking for IRS trouble?)

• Capacity & productivity (are people working enough of the right hours?)

• Cash flow forecast (13 weeks ahead so decisions aren’t reactive).

One metric leads to the next. The goal is a visual dashboard that drives decisions.

Fixes / Results: What changes when you implement this

• You stop carrying risk you didn’t realize you had (income, overhead, partner exits).

• You replace year-end panic with a living tax plan that saves cash every year.

• You convert “busy” into predictable cash by aligning pricing, capacity, and collections.

• You make faster, calmer decisions because your numbers are visible and forward-looking.

Conclusion

A profitable law firm isn’t built by accident. Pick your niche, build your board, plan your taxes, protect your income, and make data visible. That’s how overwhelm becomes confidence—and profit becomes consistent.