JASON JULIANO

Technology Executive and Entrepreneur.

Gross Profit vs EBITDA

by

Many of my small business clients ask about the importance of EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) versus gross profit during our strategy and financial planning sessions. Both are crucial for understanding your company’s financial health, but they offer different insights. Let’s break them down:

What is EBITDA?

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. Essentially, it’s a measure of your company’s operating profitability. It strips away non-operational expenses like interest on debts, taxes, and the accounting costs of depreciation and amortization.

Why is EBITDA Important for Businesses?

  • True Operational Performance: EBITDA gives a clearer picture of how your core business operations are performing. It helps you assess profitability before accounting for financial decisions (like how you’re funded) or accounting methods.
  • Comparison Across Companies: Since EBITDA removes the impact of financing and accounting differences, it’s a useful tool for comparing the profitability of companies within the same industry, even if they have varying debt levels or asset bases.
  • Valuation: EBITDA is often used by investors and analysts to value businesses, particularly when considering mergers or acquisitions.

How is EBITDA Calculated?

EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization

Gross Profit vs. EBITDA

MetricWhat It MeasuresHow It’s Used
Gross ProfitProfitability after direct costs of producing goods/servicesAssessing the efficiency of production and pricing
EBITDAOverall operational profitabilityEvaluating a company’s financial performance, comparing businesses, determining a company’s value

Net Income vs. EBITDA

Net income is your company’s “bottom line” — it’s what’s left after all expenses, including those excluded in EBITDA. While net income is important, EBITDA offers a better view of your operating efficiency, which is crucial for making strategic decisions about your business.

What is a Good EBITDA Margin?

A good EBITDA margin is relative to your industry. Generally, an EBITDA margin of 9% or more is considered healthy, but this can vary significantly depending on the specific industry and business model. Benchmarking against your competitors can give you a more accurate target.

Let’s Talk About Your Business

Understanding your EBITDA and gross profit is key to making informed decisions about your small business. If you’d like to explore how these metrics can shape your financial strategy, I’m here to help. Let’s schedule a consultation to dive deeper into your specific needs and goals.

Mosquito Shield Joins Forces with Digital Bridge

by

Big news in the pest control and home service industry! A New Era for Pest Control Franchising, Tampa-based business advisory firm, Digital Bridge, has acquired Mosquito Shield of Central Tampa. This exciting development signals a new era of growth and innovation for both companies, and it’s fantastic news for anyone looking to invest in a thriving franchise.

Why Mosquito Shield is a Top Franchise Choice:

  • Proven Business Model: Mosquito Shield has a track record of success, offering effective mosquito and tick control services that are in high demand, especially in warm climates.
  • Innovative Technology: The company utilizes cutting-edge technology to provide superior pest control solutions. Their proprietary Mosquito Protection Blend™ and backpack spray systems are designed for maximum effectiveness.
  • Strong Support System: Franchisees receive comprehensive training, ongoing operational support, and marketing assistance to help them build and grow their businesses.
  • Recurring Revenue: Mosquito Shield’s seasonal service model creates a reliable, recurring revenue stream for franchise owners.
  • Expanding Market: With the increasing concerns about mosquito-borne illnesses, the demand for effective pest control services is growing rapidly.

Digital Bridge’s Expertise:

Digital Bridge is a well-established business advisory firm with a proven track record of helping companies achieve their growth goals. Their expertise in strategic planning, operational efficiency, and marketing will be invaluable to Mosquito Shield franchisees.

What This Acquisition Means for Franchisees:

  • Enhanced Resources: The combined resources of Digital Bridge and Mosquito Shield will provide franchisees with even greater support and opportunities for growth.
  • Increased Brand Recognition: This partnership will elevate Mosquito Shield’s brand visibility, attracting more customers and potential franchisees.
  • Innovation: Expect to see continued innovation in Mosquito Shield’s services and technology, keeping the company at the forefront of the pest control industry.

The Future of Mosquito Shield Franchising:

With Digital Bridge’s support, Mosquito Shield Tampa is poised for significant expansion. The company is actively seeking new franchise partners to bring their effective pest control services to more communities. If you’re looking for a franchise opportunity in a growing industry with a strong brand and dedicated support system, Mosquito Shield is a top contender.

Are you interested in learning more about becoming a Mosquito Shield franchise owner? Visit the Mosquito Shield website or contact myself or the Digital Bridge Advisors to explore this exciting opportunity! Don’t miss out on the chance to be part of this dynamic and growing franchise family.

The Art of Investment Management: Why Tear Sheets Trump Pitch Decks in SaaS Ventures

by

The investment landscape is a whirlwind of information, where swift decisions separate winners from also-rans. Forget fancy pitch decks; savvy investors crave clarity, immediacy, and data. That’s where the tear sheet, a concise, data-driven snapshot of your fund, emerges as the new fundraising powerhouse. And my Create IT, Maximize IT, Preserve IT framework takes tear sheets to the next level, providing a potent and strategic lens for showcasing your fund’s potential.

From Pitch Decks to Powerhouse Tear Sheets: Why Data Wins with Create, Maximize, Preserve

I’ve personally sold a multi-million dollar business and helped many others achieve similar success. In my experience, investors, myself included, are tired of wading through 30-page decks. We hunger for a quick, impactful overview that showcases your potential within the framework of creating, maximizing, and preserving value.

Enter the tear sheet: the bare-bones blueprint of your fund, a captivating one-pager that piques interest and compels further exploration. It’s the elevator pitch in document form, leaving a lasting impression with key data points that whisper your trajectory, successes, and hunger for more, all framed within your Create, Maximize, Preserve philosophy.

5 Data Points to Captivate Investors through Create IT, Maximize IT, & Preserve IT

Forget flowery narratives; focus on these five data points that paint a compelling picture through the Create, Maximize, Preserve lens:

Create:

  1. Deployed Capital: Show your financial footprint and potential for creating new value.
  2. Inception & Revenue: Highlight your journey and current financial standing, demonstrating how you create from scratch.

Maximize:

  1. Fund Target & Winning Goals: Showcase your ambition and aspirations, showcasing your ability to maximize returns.
  2. Actual Wins: Quantify your achievements and validate your capabilities, highlighting how you maximize past investments.

Preserve:

  1. Market Snapshot: Briefly outline your target market’s current size and future growth projections, emphasizing how you preserve and capitalize on market trends.

Beyond Data: Craft a Compelling Narrative with Create, Maximize, Preserve

Data is king, but don’t forget the story. Include a powerful tagline that encapsulates your essence and target audience, aligning with your Create, Maximize, Preserve framework. Think “Accelerating innovation, maximizing returns, and preserving legacies” or “Cultivating sustainable growth, bite by byte”.

Unveiling the Fund: Transparency is Key

Investors want to understand the nuts and bolts of your operation. Be upfront about your terms, minimum investment, and fee structure. Visualize your success through asset allocation and historical return graphs. Most importantly, showcase your dream team: their expertise, achievements, and established processes, demonstrating how you create, maximize, and preserve with a strong team.

Sample Tear Sheets: Inspiration in Action with Create, Maximize, Preserve

To see this in action, let’s explore two sample tear sheets, both infused with the Create, Maximize, Preserve framework:

Tech SaaS Fund, Early Stage:

Create:

  • 3 years deployed capital, $20M, creating disruptive AI-powered SaaS solutions
  • Founded 2022, currently generating $5M annual revenue, showcasing our ability to create value quickly

Maximize:

  • Seeking $50M fund, aiming for 5x ROI, maximizing returns for our investors
  • Delivered 3x returns on previous investments, proving our talent for maximization

Preserve:

  • Market Snapshot: Cloud security soaring, global SaaS market projected to reach $1 trillion by 2025, a market primed for long-term preservation of value

Tagline: Fueling the future of work with intelligent software for tomorrow’s businesses, creating, maximizing, and preserving success for our partners.

Sustainable AgTech Fund, Growth Stage:

Create:

  • 7 years deployed capital, $100M, pioneering precision agriculture and vertical farming solutions
  • Founded 2016, portfolio companies generating $150M+ annual revenue, creating lasting impact with innovative technologies

Maximize:

  • Seeking $200M fund, aiming for 3x ROI while prioritizing environmental sustainability
  • Delivered consistent returns alongside positive environmental impact, maximizing both financial and societal gains

Preserve:

  • Market Snapshot: Climate crisis driving demand for sustainable food solutions, global AgTech market expected to reach $23.5 billion by 2027, a sector ripe for value preservation through environmental stewardship

Remember, your tear sheet is a unique reflection of your vision and value proposition. Embrace clarity, leverage data, and let your document tell the story. In this fast-paced world, a well-crafted tear sheet can be your most potent pitch, attracting investors hungry for a clear path to success.

Start crafting your data-driven narrative. The future of fundraising awaits.

From Broke to Bling: Your Ultimate Wealth-Building Top 15 Book Guide for 2024

by

Create It, Maximize It, Preserve It: Your Guide to Wealth & Freedom

This Ultimate Wealth-Building Top 15 Book Guide, powered by my “Create It, Maximize It, Preserve It” framework, is your roadmap to financial freedom and a thriving business. I’ll dive into a curated selection of books to empower you in each stage of your journey.

1. Create It: Building Your Wealth Foundation

2. Maximize It: Speaking the Language of Money

3. Preserve It: Safeguarding Your Success

Bonus Tip:

I wanted to keep no more than 15 books, Bill is one of my mentors, I started reading his book when I was going for my MBA, and this made me focus on my true self and providing value to the teams I lead today. So here is the 16th recommendations:

Always Remember:

  • Hire Right: Invest in your team, you can’t achieve true wealth alone. Jim Collins’ “Level 5 Leader” quiz will help you assess your leadership style.
  • Continuous Learning: Keep reading, listening, and evolving. This guide is just a starting point, the journey to wealth is lifelong.

Action Steps to Ultimate Wealth and Financial Freedom:

  • Choose 1-2 books from each section to start.
  • Set achievable reading goals and track your progress.
  • Join online communities and discussions to connect with other like-minded individuals.
  • Take action! Apply the insights you gain to your own life and business.

This curated list is just the beginning. Explore, experiment, and find the books that resonate with you. With dedication and the right knowledge, you can create, maximize, and preserve your wealth, building a future of freedom and fulfillment.

So you know, disclaimer…

As an Amazon Associate, we may earn commissions from qualifying purchases from Amazon.com. This does not affect the book suggestions listed above. All of the books mentioned above are recommended for their quality regardless of any affiliate relationships.

Lastly, this AI guide is only the beginning. I’m launching a series of targeted, research-backed recommendations to assist business leaders and executives in planning how to include AI in their strategic objectives. Return in the coming weeks for deep dives into the functional areas where AI will likely have the most significant business impact.

Follow on LinkedIn

Winning in All Your Business: Impress Your Future Self

by

In the fast-paced and ever-evolving business world, the quest for success can feel like a relentless pursuit of an elusive victory. We scan the landscape, analyze competitors’ moves, strategize growth, and strive to stay ahead of the curve. But what if we shifted our focus from simply “winning” to “impressing our future selves”?

This subtle shift in perspective holds immense power. It moves us beyond the external pressure of competition and instead directs our energy towards becoming the best versions of ourselves. It’s about crafting a path to a future where we look back with pride, knowing that we pushed our boundaries, learned, and grew.

Defining Your “Loss” to Chart Your “Win”

The first step on this journey is understanding your definition of “losing.” What are the habits, mindsets, or actions guaranteeing your future self will look back with disappointment? By identifying these pitfalls, we clarify the behaviors to avoid and the direction to pursue.

Operationalizing Success: Breaking Down Goals into Achievable Steps

It’s easy to get overwhelmed by ambitious goals. However, true progress lies in breaking them down into actionable, operationalized steps. These steps should be clear, concise, and attainable by anyone, regardless of their experience level. This approach fosters accountability, reduces friction, and sets everyone on the same path toward success.

The Power of Learning: Becoming Smarter through Continuous Improvement

Learning is not merely acquiring knowledge; it’s about applying it to change your behavior in response to the same situation. It’s about evolving and adapting, becoming a better version of yourself each day. Recognizing this empowers us to view challenges and setbacks as opportunities for growth. The faster we learn and adapt, the more intelligent we become.

Building Confidence: Proof is the Foundation of Self-Belief

Confidence isn’t a magical attribute bestowed upon the chosen few. It’s earned through consistent action and the accumulation of proof. The more times you successfully tackle a task, the more confident you become in handling it again. This iterative process of doing, reflecting, and improving builds unshakeable self-belief, allowing you to navigate any challenge confidently.

The Trap of Opportunity Hopping: Stay the Course for Long-Term Success

It’s tempting to chase the latest shiny object, jumping from one opportunity to the next in search of the elusive “big break.” However, this “opportunity hopping” rarely leads to lasting success. It fragments your focus, dilutes your effort, and ultimately hinders your progress. True mastery comes from sticking with a chosen path, even when going is tough.

When the Going Gets Tough: Embracing Downtime to Become Unbeatable

We often associate downtimes with stagnation and failure. However, for those who choose to see them as opportunities, they are powerful catalysts for growth. When the external noise fades, we have the space to sharpen our skills, refine our strategies, and emerge even stronger than before. Champions are not made in the heat of battle but forged in the crucible of adversity.

Impressing Your Future Self: A Journey of Growth and Fulfillment

By embracing this shift in perspective, we move beyond the fleeting desire to “win” and instead embark on a journey of continuous growth and self-improvement. We become focused on impressing our future selves, knowing that the true reward lies in the person we become. This journey is not about crushing the competition; it’s about exceeding our expectations, defying limitations, and reaching new heights of accomplishment.

Remember, the path to success is paved with small, consistent steps. By focusing on learning, building confidence, and staying the course, you can impress your future self and achieve your full potential. Let this journey be a testament to your dedication, resilience, and unwavering pursuit of excellence.