A Fair Warning about Your Firm’s Capital Structure
Capital structure probably isn’t at the top of the list when it comes to your concerns about your law firm. After all, in order to have a firm, you have to win cases, or you probably aren’t bringing in any money. There is a whole lot of other concerns that come with achieving a case victory, so it’s easy to see how capital structure could quickly fall into the backdrop. Hopefully you have an experienced accounting employee or office manager, but sometimes that just not possible when you are in the first year or so of starting your own firm.
If capital structure isn’t something you pay much attention to, Sean Larkan’s article might just help bring the importance of capital structure back to priority level. The article, Ignore your law firm capital structure at your peril, covers several good points, including why capital structure matters, why you might trick yourself into thinking it doesn’t, and how you can prevent it from becoming a problem. Go ahead, give it read.