What is Profit and EBITDA?

A while ago we talked about Turnover and Cash Basis - two important concepts to understand as a small business owner in the UK. Today we're talking about THE most important thing in business - Profit. Without a profit your business is pointless. If you don't have a good handle on the profitability of your business it is very likely to fail. Today I'm explaining all the different types of profit, gross profit, EBIT, EBITDA etc. and also looking at a couple of examples to illustrate the difference between these terms.
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Other videos that might be useful:
What is Turnover: • What is TURNOVER? Self...
What is Cash Basis: • What is CASH BASIS acc...
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I'm not in any way qualified to give you accountancy, tax or legal advice. Always use a good accountant. My opinions are my own and don't necessarily reflect the views of the companies I deal with. I sometimes use affiliate links - these don’t cost you a penny and help to keep this channel running. Read more about affiliate links here - the fairest way of funding the internet: smallbusinesstoolbox.uk/affil... - thanks so much for your awesome support!
#Profit #EBITDA #SmallBusiness

[@katarinalagundzin]

This is the best explanation of turnover and all that comes with a business BY FAR on youtube! Finally I understand it! Thank you!

[@abduls9316]

Thank you Andy. Well presented as always!

[@chrystalcat7488]

Just came across your KZbin and it's really helpful....thank you. X

[@Jules_Pew]

Never said EBIT or EBITDA - am accountant. Most small businesses are concerned about how much tax they'll have to pay. Normally say net profit and what tax would be due on that; keeping it simple for start-ups. Also depreciation is added back and capital allowances taken off the net profit to calculate the tax. Annual Investment Allowance muddies the water even more, but it's a good way to maintain cash flow by reducing your tax bill in one year. Gross profit margins should be steady over the years, and if there's a difference, you need to know why. And yes, a good accountant can help - ask for personal recommendation not google.

[@Mr-Dosas]

Thank you

[@virtualfather]

Great Info for young business

[@RAGproduction]

Love that t shirt.

[@Entertainment_Chilli]

Hi, I'm an Indian. I want to start my own Cosmetic company in UK. For foreign citizens how much minimum amount is mandatory to start UK Ltd company? Please suggest 🤔🤔 or Can I start sole proprietorship ?

[@SmallBusinessToolbox]

I don't think there's a minimum - have a chat with your accountant and they should be able to advise depending on the exact nature of your business. 👍

[@Entertainment_Chilli]

@@SmallBusinessToolbox Thank you for your great generosity! 🙂 Your support helps to take further decision..... 👍💯 Dear, I want to know after UK Ltd company registration Is there any fixed investment set by Uk government for foreign citizens which is mandatory. For example : I heard that £50000 are mandatory to start UK Ltd company for foreign citizens. Is it true ? If we start company. Please suggest... 🤔🤔 It will be great help..... Regards Sincerely,