Net Earnings vs. EBITDA. The net earnings of a company will be the sales or revenue minus all expenses incurred during the period. Accounting periods can be annual or quarterly. EBITDA adds back to the earnings expense items that are not directly related to the function of the company. The I, T, D and A expense items can be managed to a smaller or greater extent by management, depending on the nature of a company's business.
So that Benjamin Franklin quote from the beginning of this post should be re-written to say: âIf you fail to plan for success, you are planning to fail.â This is the new mind-set that needs to be cemented into todayâs business mind-set.
No plan (or a poor plan) is a leading cause of business failure. improve your chances of success with a good Business Plan. management doesnât take the planning process seriously. will leave doubts about the entrepreneurâs planning abilities. must be prepared to explain the âwhyâ of every point in the plan.