Bill the clients.

Pay the bills.

Count the dollar bills.

= Net Partner Income

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At the end of each year, most firms leave enough money in the business for working capital, but by and large, there is a clean sweep from firm accounts to partner accounts. It's totally fine and what everyone signed up for.

But - that hinges on a core presumption that the partner, as an individual, feels that they can spend and invest the money more wisely than the firm...thus the need to pull out the capital versus leaving it in the business.

What would it look like if the partner viewed it as a better investment to leave it in? What would it have to look like for that to be appealing?

I am convinced that if the firm truly believed in its client relationships and had strong enough niches, there would be a compelling reinvestment formula. This could persuade partner groups to funnel capital back into tools and SaaS products, creating a more sustainable revenue stream and supporting their niche strategy for recurring income.

I believe this is the eventual future of profitable, well-run service companies.

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