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name: tap-lookup description: Look up Target Allocation Percentages (TAPs) based on revenue level. Returns recommended Profit First percentages for Profit, Owner's Pay, Tax, and OpEx.

TAP Lookup

Look up the recommended Target Allocation Percentages (TAPs) for a business based on their Real Revenue level.

Usage

Provide the annual Real Revenue amount and receive the recommended TAPs.

Input Required

• Real Revenue: Annual revenue minus materials and subcontractors (if applicable)

If the user provides Total Revenue and has significant materials/subcontractors (>25%), remind them to calculate Real Revenue first using the real-revenue-calculator skill.

TAP Table

Response Format

When providing TAPs, format as:

Copy## Recommended TAPs for [Revenue Tier]

Based on Real Revenue of $X, your Target Allocation Percentages are:

| Account | TAP |
|---------|-----|
| Profit | X% |
| Owner's Pay | X% |
| Tax | X% |
| Operating Expenses | X% |
| **Total** | **100%** |

### Key Notes for This Tier
[Include relevant notes based on tier]

Tier-Specific Notes

$0-$250K:

• Owner's Pay is highest (50%) because you ARE the business
• Profit starts at 5% - small but builds the habit
• OpEx is constrained (30%) to force discipline early

$250K-$500K:

• Profit doubles to 10% as business stabilizes
• Owner's Pay decreases as business can afford more help
• OpEx increases to 40% for growth infrastructure

$500K-$1M:

• Profit at 15% - business is truly profitable
• Owner's Pay at 20% - may be taking salary + distributions
• OpEx at 50% - significant team and infrastructure

$1M-$5M:

• Profit drops to 10% temporarily for scale investment
• Owner's Pay at 10% - mostly distributions now
• OpEx at 65% - significant operational complexity

$5M-$10M:

• Profit back to 15%
• Owner's Pay at 5% - minimal salary, mostly profit distributions
• OpEx steady at 65%

$10M-$50M:

• Profit at 20% - highly profitable at scale
• Owner's Pay at 0% - all compensation through distributions
• OpEx at 65%

Important Reminders

1. These are TARGETS, not starting points - Use the 3% rule to gradually move toward TAPs
2. Industry variations exist - Some industries have different recommended TAPs
3. Tax may vary - 15% is standard but consult a CPA for your situation
4. Real Revenue matters - Product businesses must use Real Revenue, not Total Revenue

Attribution

TAPs are from the Profit First methodology by Mike Michalowicz. For the complete methodology, see "Profit First" at profitfirstbook.com.