Start With This To Increase Your Marketing Agency’s Profits.

Hey, Mahesh from Astravue here.

Quick question – do you even know your EBITDA?

Can you guess the number at least?

I bet you’re already yawning.

But stick around, because this little acronym could be silently killing your marketing agency without you even realizing it.

So, most agencies I’ve seen treat EBITDA like a boring number on some accountant’s spreadsheet.

The truth is – It’s like the “pulse” of your profitability.

If you don’t know your EBITDA, you don’t know if your agency is “thriving”, gasping for air, or already flatlining.

Ignorance might feel blissful, but only until reality smacks you in the face.

So,

And let’s talk about how ignoring EBITDA might just be the biggest mistake you’re making right now.

EBITDA - Why Agencies Keep Ignoring Their Vital Signs

It’s clear that running a small marketing agency isn’t a stroll in the park (I don’t have to point out obvious things)

You’re juggling clients, firefighting projects, chasing invoices, and trying to land your next big whale.

“Tracking EBITDA” – that’s Earnings Before Interest, Taxes, Depreciation, and Amortization sounds like something reserved strictly for accountants or your annual tax return.

But ignoring it is like driving blind on a busy highway.

Sure, it might feel fine for a few seconds, but sooner or later, you’re crashing into something big, ugly, and expensive.

Most small agencies I’ve seen obsess over metrics like new clients, top-line revenue, even Instagram followers. (Still ok, 2 out of those 3 are tied to $$$)

But those numbers alone don’t show if you’re actually making money or bleeding cash.

And let me tell you something real controversial, most agencies hide behind their top-line revenue.

Yep, I said it. Your impressive revenue numbers could just be a smokescreen covering up a financial dumpster fire.

EBITDA gives you CLARITY.

It strips away all the nonsense, interest, taxes, and depreciation, so you can see how much profit you’re actually generating from your core operations.

Without knowing this, you could be expanding your team, spending more on ads, or celebrating big revenue milestones while unknowingly losing money every single month.

I’ve seen agency owners shocked…

like jaw-on-the-floor shocked,

when they realize their seemingly healthy agency is one month away from bankruptcy.

You don’t want to discover you’re broke when payroll processing hits your account, do you?

And you avoid the surprise by reading until the end of this article.(Skip the next section if you want)

Still Want To Ignore EBITDA? Let’s Get Real.

Let me paint a clear picture here:

You wake up one morning, your phone buzzing with alerts. Clients are complaining. Your team’s morale is sinking. Vendors start asking uncomfortable questions.

Suddenly, you realize you’ve been burning through cash without noticing, because all you saw was “revenue growth”.

Your accountant calls you and guess what?

Those impressive invoices you were flaunting last month?

Most of them barely cover your overhead. You’ve expanded your team, hired expensive freelancers, ramped up software subscriptions,

and all of it funded by a “hope-and-prayer method” rather than cold, hard numbers.

Why Do Agencies Collapse Here?

Because they don’t pay attention to their financial vitals.

EBITDA’s like your bank balance after a wild weekend in Miami (Or Ibiza, or Thailand, or Vegas, or Goa, or wherever you go)…

you either “know it” or regret it later.

If you aren’t regularly tracking your EBITDA, you’re gambling with your future.

Revenue doesn’t equal profit.

Growing your team doesn’t guarantee success.

Landing a new client might not save you if your costs are quietly eating your profit margins alive.

If EBITDA seems dull or irrelevant, you might as well admit you enjoy gambling with your livelihood.

Harsh? Absolutely. True? Painfully so. Agencies that ignore EBITDA often wind up working for months, or even years, just to find themselves exhausted, demotivated, and utterly broke.

So if you’re still shrugging this off or calling it a boring thing,

ask yourself – do you want to