EBITDA or EBITDAC?

The term EBITDA is common practice in the financial world. The term is also frequently used by business owners, without a financial background, but do we really know what it stands for?  EBITDA means Earnings Before Interest, Taxes, Depreciation and Amortization.

The term is used as the standard for the operational cash-flow a business generates over a certain period, without taking into account the financial result, taxes, exceptional income or expenses. As we talk about cash-flow the non-cash costs as depreciations and amortizations are also excluded.

But what about EBITDAC… Earnings Before Interest, Taxes, Depreciation, Amortization and Coronavirus?

How has the Coronavirus affected you, your employees, vendors, and customers?  It is safe to say that at some level COVID-19 has impacted every business owner and their bottom line.  As restrictions ease and we return to some level of normalcy, it’s important to look back and reflect on what learnings we can glean from this and how to prepare for the future.

As an EOS Implementer, I help companies focus on three timeless principles regardless of the circumstances. EOS, the Entrepreneurial Operating System, is a complete set of simple concepts and practical tools that has helped thousands of entrepreneurs get what they want from their businesses. Implementing EOS will help you and your team get better at three things:

  • Vision—getting everyone in your organization 100% on the same page with where you’re going, and how you plan to get there.  Does everyone in the organization know where you are going and how to get there?  Is it clearly stated and communicated?  You and your leadership team should articulate or refine your vision to reflect who you are, why you exist, what you do and where you are going.  It gives you (and your company) a road map to follow.
  • Traction®—instilling focus, discipline, and accountability throughout the company so that everyone executes on that vision—every day.  This is where he “rubber meets the road” and your strategy becomes actionable.   Your people must focus on what needs to be done, you must have the necessary processes in place to act and then you should manage outcomes to get results.
  • Healthy—helping you (and your leaders) become a more cohesive, functional, healthy team.  In the book, “The Advantage” by Patrick Lecioni, to be successful, you need to be both “smart” with strategy, marketing, finance and technology AND “healthy” with minimal politics and confusion, high morale and productivity, and low turnover.  Are you building a culture that is healthy and helping you thrive?

In the midst of this pandemic, your problems and issues only get magnified.  Don’t ignore them, recognize and address them.  Once we are on the other side of this and you report EDITDAC, let us help you build a business that is ready for both the good times and bad times.  A business that allows you the freedom to balance both work life and family life, increasing in value, and gives you a future to accomplish your dreams.

New Paradigm Advisors believes you deserve to enjoy the benefits of a profitable, growing and well-run business. We help you break out of the old way of doing things and attack the new economy with a renewed passion and focus. For more information about transitioning your business, please reach out to us.  We’d love to hear from you.

Michael Visentine and The New Paradigm Advisors team

Awake Restaurants Testimonial: “Focusing on Facts”

As a family run, locally owned restaurant business, my son and wife and I all play various roles.  We needed to find a way to sort out who did what within the organization and to have it all make sense.

Discovering EOS

Through Michael Visentine and his New Paradigm Advisors team, we discovered a methodology known as the Entrepreneurial Operating System or EOS.  I had been exposed to EOS before, but Michael really pulled it all together for us and made it a practical solution.

A Way to Focus

EOS really helped us focus as a team.  Since our team really has multiple personalities, EOS gave us a disciplined success model to help us stay on course.  The model takes personal feelings out of the dialog and focuses on facts and people to grow the business.  And that is critical in a family owned business.  The EOS tools were great:

  • Three- and ten-year plans
  • Weekly meetings
  • Regular discussion of quarterly and annual objectives (or “rocks”)

Great Results

Now we actively meet weekly.  There we review our “rocks” on the list of things to complete in a concise and solution-focused way.

We are grateful to the New Paradigm Advisors team for the education and ongoing support!

Rob Colarossi

Owner Awake (formerly The Egg & I) and Dairy Queen Restaurants

Could Having an Operating System Help Your Business?

Operating systems are the heart and soul of whatever they power.  The drivetrain for your car. The OS in your computer.  The processes and procedures by which you run your company.

Wait. What’s that last one?

Oh, you hadn’t thought of your company as needing an operating system? Or, if it had one, it would be called that?

Without an operating system for your company, your organization can’t function. If you’re struggling to get your business under control, it’s time to consider implementing an operating system in your company.

One of the premiere sets of tools to help entrepreneurs to get results and build their organizations is the Entrepreneurial Operating System or EOS®.  One of the components of EOS® is establishing processes and creating plans and systems for organizations.

Truthfully, everyone needs a plan.  And everyone in a company needs to have the same plan for that company to succeed. You know that old adage, “plan your work and work your plan?” Yes, it applies to the infrastructure of your company.

This idea isn’t new.  Nor is there just one way to approach this challenge.

This is about getting your business under control.  And it fits hand in glove with the philosophy of New Paradigm Advisors:

  • Freedom. Processes help companies run without their founders.
  • Value. Having a culture and roadmap helps companies grow their value.
  • Future. Everyone (including the company) has a future if there are processes in place.

Taking these concepts and matching them up to those of EOS® and you have a set of tools that helps companies of most any size and age and in any industry excel.  The EOS®system relies upon:

  • Instilling a vision organization wide on where you’re going, and how you plan to get there
  • Giving a focus to every day for the entire team to execute on the vision.
  • Creating a healthy, functional, cohesive leadership

Starting a company is one thing.  Having it progress, grow and thrive over time is quite another.

Contact us to get your organization positioned for increasing value and getting result for long-term success.