Lessons Learned in Shifting to EBITDA

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The key lessons learned in shifting to EBITDA involve first understanding the right EBITDA target by consulting with industry peers. This includes aiming for a feasible EBITDA margin range, like 10-25%, with a target around 17%. Next, creating an EBITDA budget by allocating percentages of revenue to various categories helps identify areas to increase profit margin. This involves analyzing past spending patterns and adjusting allocations to achieve the desired margin. Lastly, communicating the plan clearly and consistently with the team is essential to ensure everyone is aligned with the new focus on profitability over high growth.

Episode 599: Sam Parr ( https://twitter.com/theSamParr ) and Shaan Puri ( https://twitter.com/ShaanVP ) talk about the best traits of a startup founder and lessons from how Dana White, Elon Musk, and Emmett Shear cut through the bullshit.

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Show Notes:

(0:00) Top traits founders should take from Dana White

(5:35) 1 - Brute force

(10:21) 2 - Extreme bias for action

(14:55) Quick audit of Dana White's gambling claims

(18:00) 3 - Speed

(19:00) Checklist for a perfect niche event business

(22:56) IDEA: The Beer Mile

(24:45) IDEA: Paddle Prison Break

(25:47) IDEA: Skyline Scramble

(30:17) Growth vs EBITDA vs cash flow

(32:27) Shaan's Guide to Increase EBITDA

(34:19) Step 1: create a EBITDA budget

(37:08) Step 2: communicate the plan relentlessly

(37:48) Step 3: Track and report

(38:04) Step 4: Tie into incentives

(38:30) Step 5: Repeat every 30 days

(40:02) Next stage: Cash flow

(41:28) The benefit of playing on Hard Mode

(43:38) Is e-commerce dead?

(44:54) Shaan's $30M dollar dream house

(47:56) Shaan writes an essay

(49:43) Sexier core principles

(1:00:53) Culture: What people do when the boss isn't around

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Links:

• [Steal This] Get our proven writing frameworks that have made us millions https://clickhubspot.com/copy

• Shaan Puri essays - https://www.shaanpuri.com/essays

• Brunello Cucinelli - https://shop.brunellocucinelli.com/

• Grab HubSpot's free AI-Powered Customer Platform and watch your business grow https://clickhubspot.com/fmf

• Wander - https://www.wander.com/mfm (Enter to win a free trip and use code MFM300 at checkout for $300 off your booking)

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Check Out Shaan's Stuff:

Need to hire? You should use the same service Shaan uses to hire developers, designers, & Virtual Assistants → it’s called Shepherd (tell ‘em Shaan sent you): https://bit.ly/SupportShepherd

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Check Out Sam's Stuff:

• Hampton - https://www.joinhampton.com/

• Ideation Bootcamp - https://www.ideationbootcamp.co/

• Copy That - https://copythat.com

• Hampton Wealth Survey - https://joinhampton.com/wealth

• Sam’s List - http://samslist.co/

My First Million is a HubSpot Original Podcast // Brought to you by The HubSpot Podcast Network // Production by Arie Desormeaux // Editing by Ezra Bakker Trupiano