Think of your business like a slot machine that multiplies every dollar you put in.
When you increase your profit — even by a little — you increase your company’s value by a multiple of those earnings.

That multiple (known as EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization) is what buyers use to determine how much your business is worth. So, every additional $1 of profit could mean $3, $5, or even $7 more in your eventual sale price.

If you’re thinking of selling in the next few years, those extra dollars matter even more. Buyers typically review your last three years of financial statements to evaluate profitability trends — so what you do today directly impacts your future payday.

Many owners blend personal and business expenses to reduce taxable income — things like travel, cars, or family cell phone plans. While this may seem tax-efficient in the short term, it sends the wrong message to potential buyers.

When your financials are cluttered with non-business expenses, it becomes difficult to prove your true earnings. Buyers may see the business as disorganized, risky, or less profitable — and they’ll lower their offer accordingly.

Clean, transparent financials build confidence and drive higher valuations. The goal is to make it easy for a buyer (or lender) to say, This business is well-run, predictable, and worth the asking price.