Many of my clients struggle with this question when taking a look at ways to grow their practice or firm. Whether you are in solo practice or heading a large international firm, my answer remains the same. Here is how I help them determine the difference.
A “cost” is something that does not directly impact your growth or generate higher revenues. Your office space is a cost. Paper clips, paper, photocopiers, desks, chairs, rent and so on, are all costs. They are the costs of doing business. You need them to run your firm or practice. That money going out does not come back. While they are essential, they don’t directly impact your ability to grow, increase revenues or profits and therefore are “costs.”
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