Quickly and easily see where your current business numbers fall against the recommended guidelines covered in the book Profit 1st, by Mike Michalowicz.
The template was inspired by this book, which takes a different approach than the typical Sales – Expenses = Profit method that is used by most accountants. Instead, you plug in your total sales, and based on several factors you select, the template will calculate how much you should be keeping as profit, how much you should be using towards business expenses, and how much you should be paying yourself. This is not calculating your numbers for accounting/tax purposes, this is for you to determine if you’re allotting the right amounts in each area of your business for a healthy, sustainable business that will stay profitable in the long run.
In addition to that, the excel template will also break down your annual goals, into monthly, weekly and hourly targets.
A couple other key take-aways from the book-
*It challenges the assumption that more sales = more profit. The goal instead is how can you innovate or streamline your business to the point that it has a healthy profit first, and then work on scaling to get more sales.
*It forces you to stop putting profit last and making it a priority to focus on first.
*He outlines an in depth system to implementing these ‘allocations’ and you’ll have to buy the book to figure that part out (and no, I’m not affiliated with the book, I just happened to enjoy it and of course I couldn’t help myself from making a template to go with it).
So if you would like to be able to plug a few of your numbers in, and see where you stand against the recommended guidelines, and what to do to get closer to the targets, get this template today.
The template is designed in Microsoft excel, so you will need that on your computer to use it, and the template will be emailed to you.