How to Forecast Your PI Firm’s Income and End the Feast or Famine Cycle (Ep. 174)

On this episode, host Darren Wurz explains how contingency-fee law firms can eliminate the feast-or-famine cash flow cycle through financial forecasting. He shares a practical framework for predicting future revenue by calculating the expected value, probability, and timing of each case, while also accounting for case costs, litigation timelines, and cash reserves.

Darren discusses:

Why contingency revenue is difficult to predict?

How to create a pipeline report for Case Management

Managing Pre-Lit Pipeline and Litigation Pipeline

Why you need to forecast beyond current cases?

How to monitor cycle time.

Use financing as a forecasting lever not a panic button.

Resources:

Profit First – Transform Your Business from a Cash-Eating Monster to a Money-Making Machine by Mike Michalowicz (Book)

Simple Numbers by Greg Crabtree

Simple Numbers 2.0 by Greg Crabtree