Why You Should Care About EBITDA (And What It Takes to Build It)
Apr 30, 2025
Most business owners didn’t start their business because they wanted to obsess over financial reports.
You started it to build something real—something lasting.
But if you want to know whether your business is actually growing into the asset you dream about, there’s one number you need to keep your eye on:
EBITDA.
What is EBITDA?
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization.
It’s a clean, honest snapshot of your business’s true profitability—stripped of distractions like loans, tax strategies, or depreciation schedules.
It’s the scoreboard for the game you’re playing.
But here’s the secret most small business owners miss:
You don’t improve your EBITDA by staring at it.
You improve it through the daily, weekly, and monthly actions you and your team take.
Why Should a Small Business Owner Care?
If you think EBITDA is just for big corporations, think again.
As a small business owner, your daily decisions have a direct line to your EBITDA.
And when you understand it, track it, and build it, you unlock massive advantages.
With the help of your bookkeeper and accountant—your "financial trainers"—you can track your progress.
But you and your team are the ones doing the heavy lifting every day to build a business worth owning—and one day, worth selling.
5 Reasons You Should Focus on Building EBITDA:
1. You’re Building an Asset, Not Just Running a Business.
Revenue is noise.
A growing EBITDA proves you’re creating a real, transferable, and valuable asset—one someone else would want to buy.
2. You Can Raise Capital More Easily.
Want investors, banks, or lenders to back your growth?
They don’t just want to hear a good story. They want to see healthy, growing EBITDA numbers.
3. It Reflects the Health of Your Operations.
Every system you tighten, every expense you control, every efficiency you create—it all shows up in your EBITDA over time.
It’s not about one magic fix. It’s about the habits you build into your business.
4. It Makes Your Business More Predictable.
Watching EBITDA monthly helps you catch red flags early and double down on what’s working.
It gives you control over your future instead of riding the rollercoaster.
5. It Sets the Foundation for a Successful Sale.
If you want options down the road—to sell, partner, or even just step back—your EBITDA will be a key part of your valuation.
And buyers will pay a premium for businesses with strong, consistent EBITDA.
Here’s the truth:
EBITDA is the scoreboard, but your daily activities are the plays that get you there.
Your bookkeeper and accountant can hand you the report.
But only you and your team can do the work that makes the numbers better every month.
At Leverage Consulting, we don’t just help you read your scoreboard.
We help you build a game plan that actually wins.
Ready to turn your business into the asset it was meant to be? Let's get started.
