Hi, Reader,

This one is going to be a two-parter because it's an important money thing that I want to make sure we're wrapping our heads around.

Most independent consultants are not sitting around wondering, “How much did my business earn?”

We’re asking:

Did the invoice clear?
Can I pay myself?
Did I save enough for taxes?
Is there enough left for my actual life?

So when someone says we should know how much the business earned, the reasonable response might be:

Who cares? I made money.

Here’s why it matters.

Paying yourself supports your life.

Having money left after fairly paying yourself gives the business breathing room.

It allows the business to keep moving when:

• A client pays 30 days late
• You need to take a month off
• You lose a major contract
• You want to hire help before the next payment arrives
• You need to invest in marketing, systems or a new offer

If every dollar left after expenses has to come home with you, you may still have a successful consulting practice.

But every interruption in your ability to work can interrupt your income. And every investment in the business has to compete with your mortgage, groceries, childcare and other personal needs.

You do not have to want a large agency or a seven-figure firm to care about this.

You may simply want more stability. More time. More choices. The ability to breathe when something changes. (You know by now that more freedom is always my end goal for us)

Owner compensation supports your life today.

Business profit creates options for what happens next.

And options are part of freedom.

That is why EBITDA matters.

(Btw, EBITDA stands for earnings before interest, taxes, depreciation and amortization.)

I'll share part 2 tomorrow and I’ll show you how to calculate it in a way that gives your own labor a real value.

You got this.

Kamilah