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PROFIT ASSESSMENT

for

[Golden Key Partnership]

Overview

This report is a concise, actionable plan to immediately and continuously improve the financial health of
[Golden Key Partnership]. We have used the Profit First methodology to analyze your business, set
financial targets and to outline a blueprint to achieve them.

What makes Profit First unique is that it is a behaviourally based cash management system.
Instead of regularly digging into financial reports and conducting frequent financial analysis, Profit First
enables you to instantly measure your financial health and take action by simply looking at your bank
balance periodically.

Utilizing this report will guide you through the implementation of Profit First, make sure that you

remain accountable to the quarterly profit goals, and help you adjust the profit (and other financial)
goals moving forward.

Introduction to Profit First

Before we get into the detail of the Initial Profit Assessment Review and proposed ‘Roll Out Plan’, we
need to recap on some basic principles of the Profit First system which will provide context to the
application of the system.

Profit First is a behavioural approach to allow entrepreneurs to become profitable business owners
based upon their natural behaviours. Entrepreneurs and Small Business Owners (SME/SMB’s) tend to
react through ‘bank balance accounting’, and this is a hard habit to break, even though accountants tell
us we need to review all sorts of financial documents. Whilst it is typically difficult to change our
behaviours, if we can channel our natural behaviours to benefit us then we can succeed – we can get
the results we want faster, because our natural behaviour is benefitting us.

The Profit First system uses at its core, 2 systems that have been around ‘forever’ – the ‘Pay Yourself
First’ system, and the ‘Envelope’ system – 2 simple and behaviourally logical systems to ensure that you
are paid, and that money is allocated appropriately between different ‘needs’. The reality however, is
that very few businesses follow either system!

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