My First Million cover image

3 Things You Need To Outperform 99% Of Entrepreneurs

My First Million

NOTE

Lessons Learned in Shifting to EBITDA

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.

00:00
Transcript
Play full episode

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
App store bannerPlay store banner