# How much should you (the owner) make? *** **Prev Page**: [[Exercise - The Just Cause]] **Next Page**: [[Managing People]] *** The obvious answer is as much as possible! However, there are situations where growing your business can create some confusion. Especially if you have partners or investors, or owners who work in the business but at different levels. In his [[library/Profit First|book Profit First]], [[Mike Michalowicz]] created a table called **Target Allocation Percentage** to help answer these questions. They are guidelines which are revenue dependent. Also, they have not been adjusted to market pressures or inflation. But they do provide a reference. Note: the book was published in: 2017 to give you a sense from where the data comes from. ![[Profit First Target Allocation Percentage Table.png]] A few key things. You want to use your "Real income" when establishing your companies revenue range. For example, if you run a marketing business that buys a lot of google AdWords on behalf of your clients, you would want to deduct this "income" from your top line revenue because you really don't have the use of the funds your business. The same is true with many construction companies where they often act as stewards for client funds hiring sub-contractors to do the work. This form can be used along side the assessment tool. ![[TAPS Assessment.png]] You can use this form with the TAPS table to assess your business. The process is: 1. Enter your gross revenue for the year. 2. Add in the subcontractors, and materials. 3. Subtract materials & subs from Top Line Revenue to get your "real revenue" - the money you have to run your company and pay yourself. 4. Using the real revenue number, refer to the allocations in the TAPs Table. 5. Then use the PF% to fill in the Target percentages. 6. Now, go to your P&L and start plugging in the rest of the numbers. 7. Using the spreadsheet you can see if your business is healthy or struggling depending upon the allocations. **Note**: These values are suggestive, not prescriptive. It is a way to look at your business from a new perspective and then use that information to inform your decisions. ### Example Here is an example using real data from a single unit GameTruck franchise. ![[Example Allocation.png]] ## Cross Reference - [[EO Accelerator Resources]], ## Resources Using the spreadsheet, this is a google sheet you want to duplicate into [Profit First Worksheet - Google Sheet](https://docs.google.com/spreadsheets/d/1YJuetb1VGnxizeFpyz6x7n-n3ZduhN241tqTr2fKOq8/edit?usp=sharing) [Profit First Worksheet - Excel](https://docs.google.com/spreadsheets/d/1oRrsxQQjon8h9HnCN11djORKgY8-l8AW/edit?usp=sharing&ouid=109089389972754601096&rtpof=true&sd=true)