The finsse seller? Or on to something bigger?

Enterprise Seller

Looking to take your business to the next level? Possibly looking towards a business exit? This page will take you through the options you have on the table once you’ve reached the enterprise status as an eCommerce seller

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What are your next steps?

So you’ve reached the Enterprise level of online selling, congratulations! The question now is where do you go next? Are you goals still similar to when you set out or have they changed? As your business reaches new heights, it’s essential to consider strategic moves that match with goals and objectives that you want for you and your business. It important now that you look solutions that match with the outcomes you’re striving for ensuring you can further propel your growth and secure your long-term success. Here are key considerations for advancing your larger ecommerce business:

2. Business Exits

How to calculate EBITDA

EBITDA = E+B+I+T+D+A

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Earnings

  • Normally, this is your net profit as you report it to the tax authorities.
  • Net profit is the total revenue you’ve generated from sales, minus the total amount you deduct as a legitimate business cost.
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Before

  • The ‘B’ stands for ‘before’.
  • The items below, when added to your net profit calculation, should change the amount of your net profit and your assets in your favour.
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Interest

  • The interest you’re charged when repaying your debt is added back to your earnings.
  • Other types of interest should not be included, such as interest on accounts receivable.
Taxes

Taxes

  • EBITDA adds back taxes, which can vary from one period to the next and are affected by numerous conditions that may not relate directly to your business’ operating results.
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Depreciation

  • When you use tangible (physical) assets – such as machinery or vehicles – over time, they fall in value.
  • EBITDA adds back this loss in value.
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Amortisation

  • This relates to the eventual expiring of intangible (non-physical) assets, such as patents or copyright.
  • In EBITDA, amortisation is added back.