If you have any information about your students from the previous grade teacher, then you can group your students in tiers based on the data on the first week. If the students have never been to school, then you can group them randomly in the first week of school.
In the second or third week, you can group them based on your observations, and once you have data from the beginning of school year assessments, then you can arrange them in tiers. (Tier 1, Tier 2, and Tier 3)
I organize the tiers by colors that match with the classroom rug and all the material’s boxes.