Profit First Percentages: How to Adjust for Your Business Stage

Profit First

Profit First is a game-changer for managing cash flow, but it’s not a one-size-fits-all system. The key to making it work is tailoring your percentages to your business stage.

Whether you’re just starting out or scaling up, your allocations for profit, tax, and expenses should evolve as you grow.

Start-Up Stage: Build a Buffer
In the early days, cash flow can feel unpredictable. Your focus should be on creating stability and forming good financial habits.

Suggested starting allocations:
💰 Profit: 1% just to build the habit
💼 Owner’s Pay: Enough to cover your essentials
🔍 Expenses: Keep them lean while you grow

These small, intentional steps lay the foundation for long-term financial success.

Growth Stage: Prioritise Profit and Tax
As your income becomes more steady, it’s time to start planning more strategically.

Suggested adjustments:
💰 Profit: 5–10% to reward your progress
📊 Tax: 15–20% to stay ahead of the ATO
💼 Owner’s Pay: Gradually increase as the business stabilises

This stage is about balancing momentum with responsibility, growth without the stress.

Established Stage: Scale with Confidence
When your business is thriving, your focus shifts to maximising profitability and reinvesting wisely.

Suggested allocations:
💰 Profit: 15% or more to fuel future investments
📊 Tax: Maintain consistent contributions
📈 Expenses: Reinvest strategically in areas that drive real growth

Your financial systems should now feel solid and supportive, this is when you step into real CEO confidence.

Adjust as You Grow
Profit First is designed to be flexible, not fixed. Review your allocations quarterly, or whenever your business shifts direction. The goal is to make your money work for you, no matter where you are in the journey.

💬 Need Help Customising Profit First for Your Business?
We’ve helped businesses at every stage implement Profit First in a way that actually works. No overwhelm. No generic plans. Just clear, practical support that grows with you.

✅ Tailored allocations
✅ Ongoing support
✅ Real financial clarity

Let’s chat about building a system that suits your business today, and where you’re headed next. Book a call

#ProfitFirst #CashFlowManagement #BusinessGrowth #SmallBusinessTips #BluBookkeepers

Free Guide – The Ultimate Guide to Managing Your Expenses

When was the last time you reviewed your expenses?

Whether you are managing your personal or business expenses, regular review keeps you on track.
Get our free guide, complete with our Expense Analysis Tool to help you on your way to a secure financial future.

SHORT ON TIME – HERE’S THE SUMMARY

Your Profit First allocations should grow with your business. In the start-up stage, keep it simple. During growth, balance profit and tax. Once you’re established, maximise returns and reinvest wisely. Adjust regularly to stay aligned with your goals.

23 Jan 2025 | Profit First