It’s been proven that getting the foundations right, regardless of the endeavour, is a critical factor that sets you up for success. It saves you from disastrous decisions that can impact the future of your business. 
In this episode of Profit First for Tradies, we talk about nailing the Instant Assessment. This is a tool I use and recommend for identifying where the business stands and possible actions for future planning. 
A fair warning, this can get overwhelming the first time you try it, that’s why I’ve included a Step-by-Step Guide that you can check as I explain the Instant Assessment process. Keep in mind that it’s vital that you get clear on your data and numbers to give you the right perspectives and business percentages.
The basic premise of the Instant Assessment is whether you receive the cash or not, it gives you a clear understanding of your real revenue, profit, operating expenses, taxes, and much more. It allows you to work in confidence and put strategies in place so the business can sustain forthcoming changes.
In this episode of the Profit First for Tradies, you’ll learn the following:

• What can you use the Instant Assessment for (01:05)
• Why it can be tricky for some people (01:52)
• The importance of having the right foundations in business (02:28)
• Step-by-step guide on Instant Assessment and what to include in the data (03:45)
• Why you should only work with the real revenue range (05:21)
• Understanding your operating expenses (05:52)
• Taxes and Owner's compensation (07:20)
• Moving from Current Allocated Percentages to Target Allocated Percentages (10:03)

The Instant Assessment can get tricky and confusing at the start but following the steps and consistently practising it will bring great results. It transforms how you make decisions and guides you closer to your business goals.
If you haven’t listened to our previous episode about 8 mistakes people make when implementing Profit First, go back and check out Episode 004. 
QUOTES

"Getting the foundations right in your business is critical to everything else." -Katie Crismale-Marshall

“Following and practising the steps for Instant Assessment will change the way you look at your business and the way you make decisions.” -Katie Crismale-Marshall 

"Working with the right revenue range will determine the target allocated percentages you are headed for." -Katie Crismale-Marshall

Resources

• Profit First Instant Assessment Step-by-Step Guide
• PFFT Episode 003: Why Bookkeeping is Important For Your Business

CONNECT WITH KATIE CRISMALE-MARSHALL

• Website: https://www.profitfirstfortradies.com.au/ 
• YouTube: https://www.youtube.com/@profitfirstfortradies9503/featured  
• Facebook: https://www.facebook.com/ProfitFirstforTradies/