Owned and Operated - A Plumbing, Electrical, and HVAC Business Growth Podcast

How Smart Home Service Owners Should Invest (P&L, EBITDA, and Enterprise Value)

Dec 18, 2025

Home service owners are essentially investors, even if they don't realize it. A 3x return on P&L expenses is crucial for maintaining enterprise value. The difference between P&L and balance sheet investments can impact overall growth and profitability. They explore how focusing on just two or three major initiatives can yield better results than spreading resources too thin. Finally, understanding cash-flow versus enterprise-value assets can guide smarter investment decisions for future success.

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INSIGHT

Owners Are Investors

Owners are already investors because they allocate capital, people, and attention daily.
John Wilson urges evaluating P&L expenses by their impact on enterprise value and EBITDA.

ADVICE

Require A 3x Return On P&L Spend

Before adding a recurring P&L expense, ask if it will produce at least a 3x return given your business multiple.
If it won't, avoid the spend because it reduces EBITDA and enterprise value.

ADVICE

Treat Software As P&L Investment

Treat recurring software costs like any other P&L line and measure attributable value to EBITDA.
Ask: would you want that software if you had to sell the business today?

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In this episode of Owned and Operated, John Wilson and Jack break down what “smart investing” actually looks like for home service operators—starting with the truth most owners miss: if you run a business, you’re already an investor. You’re investing money, attention, and people every day.

They start with a practical framework for P&L investing (software, headcount, SG&A): if your business sells for a multiple, then any new expense should produce a return that justifies that multiple—otherwise, you may be quietly reducing enterprise value.

From there, they unpack the difference between balance sheet investments (trucks, equipment, inventory) vs P&L investments, why banks and buyers mostly care about EBITDA, and how focusing on fewer initiatives can drive more profitable growth.

Then they shift into the “outside the business” conversation: when diversification helps, when it’s a distraction, and how operators can think in two buckets—cash-flow assets that fund life, and enterprise-value assets that build wealth.

If you’re adding software, hiring leaders, buying equipment, or debating real estate vs reinvesting in the core business—this episode gives you a clean way to think about ROI, focus, and capital allocation.

What You’ll Learn

Why every operator is an investor (capital, people, and attention allocation)
A simple rule for P&L expenses: should this generate a 3x+ return based on your business multiple?
The difference between investing on the balance sheet vs the P&L

🎙️ Hosts

Host: John Wilson — https://x.com/WilsonCompanies
Co-host: Jack - https://x.com/thehvacjack

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John Wilson, CEO of Wilson Companies
Jack Carr, CEO of Rapid HVAC

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