Most business owners think EBITDA is a straightforward calculation. Revenue minus expenses minus taxes, interest, depreciation, and amortization. Clean math. But when a buyer puts an offer on your desk, their EBITDA calculation almost never matches yours. The gap isn’t a mistake. It’s strategy. Your EBITDA reflects how you’ve run the business for your benefit. … Read more
Most business owners think enterprise value is just a fancy term for ‘what my business is worth.’ It’s not. Enterprise value is what makes your business worth buying in the first place. It’s the difference between owning a job and owning an asset. When a buyer evaluates your business, they’re not just looking at your … Read more
Most business owners have no idea what their company is worth until they’re sitting across from a buyer. When that moment arrives, the conversation rarely goes the way they expected. The buyer’s number is 30 to 50 percent lower than what the owner thought, and suddenly there’s a scramble to understand how to calculate business … Read more
There’s a company in California with a unique approach to leadership that seems to be bearing results: Morning Star. Morning Star produces over two million tons of tomato products each year, from tomato sauce and ketchup to diced, whole peeled, and crushed canned tomatoes. But what really sets the company apart is its unusual corporate … Read more
When Devon first started as a marketing manager at Carter Software Company, he noticed a need for more communication between teams that hindered productivity and output. The sales department often promised clients features and timelines the engineering team couldn’t deliver. Frustrated engineers would then blame marketing for overpromising without checking in with them first. To … Read more
When Netflix launched in the late 1990s, it disrupted the movie rental industry by offering a DVD-by-mail subscription service without late fees. It was a novel idea that found an eager customer base. In the early years, Netflix aggressively invested in optimizing its DVD rental operations. They refined the movie recommendation algorithm, expanded their distribution … Read more
Abraham Lincoln’s presidency (1861-1865) stands as one of the most tumultuous periods in American history. Thrust into leadership at the onset of the Civil War, Lincoln faced a nation literally tearing itself apart. The conflict between the Union and the Confederacy tested not only the fabric of American democracy but also Lincoln’s leadership abilities in … Read more
As an entrepreneur, you’ve probably heard the sobering statistic that 9 out of 10 startups fail. While this number can be intimidating, it doesn’t have to be your destiny. By understanding the common pitfalls and implementing smart strategies, you can significantly improve your chances of success. “Make something people want.” – Paul Graham, co-founder of … Read more
Hitting a slump in your business can feel like a punch to the gut, but it doesn’t have to be the end of the line. Running a small business is a rollercoaster ride. There are exciting highs and also inevitable dips. If you’re experiencing a slump in your business, now is not a time to … Read more
While the sudden shift to remote work during the COVID-19 pandemic garnered a lot of attention, another emerging trend is the rise of “fractional” or part-time employment for specialized roles and executive-level positions. A new report from the McKinsey Global Institute highlights how the pandemic accelerated workforce trends like automation and e-commerce adoption. This is likely to … Read more