Calculate your business percentages

Write down your predetermined allocation percentages.
These will be your guiding principle. If your business makes less than $500k a year: your profit would be anywhere between 5% to 15%, the owner’s pay would be between 20% to 50%, tax is always 15%, and operations expenses are between 30% to 50%.

Write down the profit percentage in the PF% column of your table based on your real revenue range.
For example, if your real revenue is $430,000, you can use percentages from the step before. Higher revenue would have different allocations.

Multiply the real revenue number from your actual column with each percentage and write down the numbers in the corresponding PF$ cell.
These are your target PF in dollar amount.

In the Bleed column, subtract your PF$ number from the Actual number.
Negative numbers in this column mean that you are bleeding or losing money in these sections.

In the Fix column, put ‘increase’ or ‘decrease’ next to each category.
For example, if the number in the Bleed section is negative, put ‘increase.’