📊 How to Use the Profit First Instant Assessment
This tool helps you evaluate how your business's current cash allocations align with the Profit First method—a system designed to ensure your business remains healthy and profitable by prioritizing profit, owner's pay, taxes, and expenses in a specific order.
🛠 Purpose of This Tool
The Profit First Instant Assessment provides a snapshot comparison between your current spending and the ideal target allocations based on your revenue and profit margin. It gives you clarity on how much you're spending in key categories like Inventory, Profit, Owner’s Compensation, Taxes, and Operating Expenses—along with how far off or close you are to recommended benchmarks.
✅ Steps to Use:
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Enter your numbers
Fill in the yellow fields for revenue, cost of inventory components, operating expenses, and other categories such as tax and owner's comp. -
Review calculated outputs
The table below the form will auto-update as you type, showing:
-Your current dollar amounts and percentages
-Target percentages and amounts
-The variance (difference) in both dollars and percent -
Use the results to inform decisions
Positive variances are shown in green—indicating you’re over-allocating to a category (which may be okay or not, depending on context). Red cells show under-allocations or overspending relative to Profit First targets.