Profit First Target Setter
Based on the Michalowicz revenue ranges, discover what your Target Allocation Percentages (TAPs) should be to run a healthy, profitable business.
$
Real Revenue = Gross Revenue - Materials & Subcontractors
Your Target Percentages
Profit5%
Owner's Pay50%
Tax15%
Operating Expenses30%
Annual Dollar Allocation
Profit$5,000
Owner's Pay$50,000
Tax$15,000
Operating Expenses$30,000
The Operator's Verdict
If your current allocations are far from these targets, don't panic. The goal isn't to fix it overnight. Start by moving your current percentages 1% toward the target every quarter.
- Open 5 separate bank accounts today.
- Allocate your current cash based on these percentages.
- Do your allocations on the 10th and 25th of every month.