Simple Numbers, Straight Talk, Big Profits!: 4 Keys to Unlock Your Business Potential

by Greg Crabtree

Educate partners on this statement.

Pretax profit is your earnings before taxes. That is the revenue-generating activity that your business produces for your benefit. In most of the businesses I work with, interest, depreciation, and amortization are real numbers, so it’s important to understand that you should ignore EBITDA and focus on your pretax profit.

$155,000, and they made $105,000. That’s a 68 percent return