• Am I profitable?
• Is my business healthy?
• Where is my money actually going?

One metric that helps answer those questions is EBITDA. You don’t even need an accounting degree to calculate it.

This article breaks down what EBITDA is, why it matters, and how to calculate it from a standard income statement.

What is EBITDA and is it Dwarven or Elvish?

EBITDA is

Earnings
Before
Interest
Taxes
Depreciation
Amortization

It is a way to measure how much money your business actually generates from its operations before external financial factors muddy the picture.

EBITDA tells you how much money your business makes from doing the thing it actually does.

 For a professional GM, “the thing you actually do” is:

• running sessions,
• preparing content,
• managing player groups,
• and coordinating the operational structure of multiple campaigns.

EBITDA ignores things like:

• how your loans are structured,
• your local tax rules,
• non-cash accounting items like depreciation.

Because of that, it gives you a cleaner picture of your business performance.

This is why professional investors use EBITDA because it normalizes the core data and leaves variables like taxes and interest out.

Why EBITDA Matters for Business Owners

Professional GMs are no different than a restaurant or a multi-national bank. Many business owners underestimate how “real” their business becomes. If you’re running multiple weekly campaigns, hiring assistants, paying for digital tools, or building modular homebrew content, your finances start to behave like those of a service company.

What does EBITDA do that makes it so useful?

Operational Performance: It answers is my core business making money?

 Apples to Apples: EBITDA strips out location based tax differences and individual financial structures. What does that give you? A normalized way of comparing your business month to month or year to year.

Planning and Scaling: EBITDA can show whether your current operations generate enough cashflow to support growth. Do you subcontract? Rent a production studio? Invest in new technology? EBITDA is a useful metric for planning your next move.

Widely used in business valuation: You have data to set revenue targets, evaluate risk, and see the sustainability of your operations. It’s also useful for selling a business.

How to Calculate EBITDA

EBITDA = Operating Income + Depreciation + Amortization

Or
EBITDA = Net Income + Interest Expense + Taxes + Depreciation + Amortization

Interest: Credit card interest, loan interest (banks or friends and family), equipment financing costs.

Taxes: Taxes vary due to many factors. Removing them allows you to evaluate your business independent of your tax strategy.

Depreciation: This is an accounting charge that spreads the cost of assets over several years. Computers, furniture, and other physical assets with more than one year of useful service usually have depreciation. Even though depreciation reduces net income on paper, it doesn’t reflect money leaving the business this year, so EBITDA adds it back.

Amortization: Similar to depreciation but for intangible assets such as R&D costs for authoring a new module, copyright filings, etc. Not all GM businesses have amortization but if you’re creating original content you likely do.

Example using Net Income

EBITDA = 32000 + 600 + 4000 + 1200 + 0 = $37,800

How you can use EBITDA as a Professional GM

Trend tracking. Review monthly or quarterly to see:

·         whether new campaigns are profitable,

·         whether expenses are creeping up,

·         whether prep‑time or R&D reduction efforts are paying off (remember someone needs to get paid for any work that is done, not just during the session).

Pricing Decisions. If your EBITDA is positive but narrow consider:

·         raising session rates

·         adjust group size or number of groups

·         discontinue sales or discounts

Efficiency Improvements. Falling EBITDA may show:

·         Labor for session prep time increased

·         You have subscriptions you aren’t using

·         You spent too much money at DTRPG (it happens)

Scaling Readiness. Stable EBITDA means the business is consistently producing operating profit. Key for:

·         Outsourcing

·         Buy or lease better tools and equipment

·         Experimenting with new offerings

Conclusion

You don’t need to become an accountant to run a professional GM business, but you do need to understand the basics of business health. EBITDA is one of the clearest indicators of whether your creative work, delivered as a service, is generating real financial value.

Questions

Do you have questions on how to improve your business? Book a consultation with us.

The Border Kingdoms are a patchwork of small, often transient realms, each with its own ruler and unique challenges. Unlike the more established regions of Faerûn, the Border Kingdoms are a place where nobility can be self-granted. This means that if you can acquire and defend a territory, however small, you can claim a noble title. This makes the Border Kingdoms an ideal destination for adventurers who dream of ruling their own lands.

Becoming a noble in the Border Kingdoms is not for the faint of heart. It requires courage, cunning, and a willingness to face danger head-on. To be recognized as a noble, you must acquire and defend a territory. This often involves battling monsters, outlaws, and rival claimants. However, the rewards are well worth the effort. Once you have established your domain, you can enjoy the prestige and power that comes with being a ruler.

The Border Kingdoms are a haven for adventurers. The region is filled with ancient ruins, hidden treasures, and powerful artifacts waiting to be discovered. Whether you are a seasoned warrior, a cunning rogue, or a wise wizard, there are countless opportunities to prove your worth and gain the resources needed to establish your own kingdom. The constant threat of danger ensures that only the most capable and determined adventurers will succeed.

One of the most appealing aspects of the Border Kingdoms is its diversity. Each realm within the region has its own unique culture, history, and challenges. This means that no two adventures in the Border Kingdoms are the same. Whether you are defending a remote keep from marauding monsters, negotiating alliances with neighboring rulers, or uncovering the secrets of an ancient civilization, there is always something new and exciting to discover.

The Border Kingdoms are a place of constant change and uncertainty. Realms rise and fall with alarming frequency, and the political landscape is always shifting. This creates a dynamic and unpredictable environment that is perfect for adventurers who thrive on challenge and excitement. The thrill of the unknown is a powerful motivator, driving adventurers to explore new territories and take bold risks in their quest for power and glory.

For those with the ambition and determination to rule, the Border Kingdoms offer a realm of endless possibilities. This wild and untamed land is a perfect setting for adventurers to carve out their own kingdoms and make their mark on the world. The time is now.  Gather your party, prepare for battle, and embark on an epic journey to claim your place among the rulers of the Forgotten Realms.

Unless you were born into nobility, becoming a noble in Forgotten Realms is a challenging and often arduous journey. In the Border Kingdoms, where nobility can be self-granted, you must acquire and defend a territory, no matter how small, for heralds to recognize your titles. In most other realms and city-states, gaining a title typically involves pleasing or aiding the ruler in a significant way. As the bard Mhaerigo Whitstone once said, "Saving the king’s life ain’t enough. He has to like you, too!"

Extraordinary titles, which do not involve large land grants, are more likely to be granted than hereditary ones. Many rulers bestow titles that come with no more than a tavern or a building seized from a debtor or a traitor. However, sitting nobles often frown upon new upstarts, treating them with disdain regardless of their titles. Marrying into the nobility is another path, though it may earn you the label of "common, lowborn boor" behind your back.

Higher-ranking court titles are not marks of nobility themselves, but they are usually accompanied by at least a knighthood if bestowed on a commoner. For instance, Azoun IV of Cormyr once made a commoner Lord High Marshal of Cormyr for a tenday to send a private message to his queen. Although the commoner ceased to be Lord High Marshal, he became Sir Aergult of the Forge, one of the few knighted blacksmiths in the realm.

In lands like Amn and Tethyr, one can gain nobility by offering to police a border area. Successful adventurers might be given a remote keep and the title of baron, with the expectation of maintaining peace and defending against outlaws and monsters. However, border barons are closely watched to ensure they do not become corrupt.

Personal service to a ruler or marriage to a member of the nobility can also win you a noble title. However, if the ruler is succeeded by someone who disliked the former ruler, your title—and possibly your head—could be at risk. Publicly saving a realm like Cormyr might earn you a title such as Lord High Protector of the Realm, though its hereditary nature would remain ambiguous.

Becoming a noble in Forgotten Realms is no easy feat, but for those with the ambition and tenacity, the rewards are well worth the effort. Whether through valor, service, or strategic alliances, the path to nobility is paved with challenges and opportunities. So, gather your party, sharpen your blades, and embark on the quest to claim your place among the aristocracy of the Forgotten Realms.

Adventurers can create their own blazons without Heraldic approval, provided they avoid formal agreements or priesthood services. The Heralds don’t judge the taste or legitimacy of blazons unless holders ignore their instructions.

In the busy realms of the Border Kingdoms and Sembia, the Heralds charge additional fees for blazons. Nobility, gentry, and guilds are charged for registering their blazons. Unauthorized duplication of blazons incurs fines, and persistent offenders face escalating penalties.

Here are the typical fees:

• Full coat of arms: 1,000 gp
• Grant of arms (in triplicate): 1,000 gp per trio
• Painted shield or shield cover: 500 gp
• Banner: 500 gp
• Additional fee for blazons in the Border Kingdoms: 250 gp per person
• Additional fee for blazons in Sembia: 5,000 gp (reduced to 2,000 gp for unmarried children under twelve)
• Registration of blazon: 1,000 gp
• Artist’s fee: 50 gp for a shield, breastplate doorplate, or tabard; up to 500 gp for a banner, wall-tapestry, or large coat-of-arms
• Fine for duplicating someone else’s blazon: 500 gp

These fees have led to a proliferation of self-styled “Lords” in Sembia and the Borders, many of whom use a single device as a badge. The Heralds allow certain additions to these badges without considering them a “second charge”. However, adding a specific background or a second weapon incurs an additional charge. Despite this, the Border Kingdoms boast numerous self-proclaimed Emperors, few of whom have purchased the right to a blazon.

To stake a legitimate claim to power one must commission those who are responsible for the identity of power. Only once your blazon is established across the continent will you be recognized.

The High Heralds, play a crucial role in establishing noble rankings. They don’t use force but wield influence through censure. Their judgments are rarely disputed, and they determine a noble’s rank at gatherings outside their home city or realm. Their authority is particularly valued in Sembia and the Border Kingdoms, where titles are recent and often self-invented.

A newly confirmed baron demanding privileges in their barony can be refused if the Heralds dispute their title. Even priests, aware of the rightful title holder, will refuse service to an “impostor” due to the Heralds’ influence on their status among the populace. In Faerûn the perception of nobility is as significant as the title itself.

Mercenary companies, often embroiled in the chaos of battle, rely on the Heralds to protect their reputations. The Heralds do not concern themselves with the behavior or recruitment of these companies but are vigilant about the symbols they bear. If a mercenary company or any individual alters a badge unlawfully, the local herald will consult the rolls and, if suspicious, report to a superior. This ensures that any foul play is swiftly addressed.

Mistreating or harming a herald is a grave offense, leading to instant dismissal from one’s rank and a loss of noble status. This punishment is severe, as it results in social and political ostracization until a public pardon is granted. Even royalty cannot rule effectively without the Heralds’ approval, often leading to abdication or regency.

The Heralds’ power is such that they rarely need to enforce their censure; the threat alone is usually enough. They remain neutral in matters of regicide, civil wars, or unlawful actions against rulers, focusing solely on heraldic violations. When a blazon is self-assumed, a herald, accompanied by witnesses, will confront the offender, explaining the transgression and demanding immediate compliance or formal petition for approval.

In the end, the Heralds’ authority over symbols and lineage is absolute, and navigating disputes with them requires utmost respect and adherence to their decrees.

 Heralds have a unique role within the realms. They do not amass wealth like Mercantile leaders, nor do they command troops like Military leaders. Instead, they hold a different kind of authority—one that comes from their control over symbols and status. A Herald's word can validate a noble's claim or strip them of their ancestral rights. This power, though less visible than that of a sword or coin, is no less potent.

 At the heart of a Herald's duties is the regulation of blazons—shield emblems representing both noble and common houses, and identifying organizations. Heralds ensure that these symbols are not falsely claimed or improperly used, maintaining the integrity of lineages. They work with artists to craft new blazons, serve as criers announcing news at public events, and act as the designers who regulate the display of these symbols. Beyond this, they are genealogical clerks, sometimes working with local authorities to manage census and tax records, or challenging corrupt officials who manipulate such information for their gain. In a Herald leadership campaign, one might find themselves uncovering fraudulent claims to nobility, negotiating the creation of a new blazon for a rising house, or even navigating the political intrigue that comes with their position of power. The campaign offers a web of opportunities, where the pen can indeed be mightier than the sword.

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A Marshal’s campaign has some similarities to other leadership campaigns, yet it is distinct from other leadership campaigns. While a Mercantile leader might build a trade empire or a Military leader commands armies, a Marshal operates under the jurisdiction of the government, often working alone or leading a small group to enforce the king’s law. They are the sheriffs of the wilderness, tasked with bringing civilization’s rule to the untamed lands.

Marshals may find themselves chasing bandits, negotiating with tribal leaders, or protecting settlers. Their adventures are grounded in realms of authority and diplomacy rather than treasure hunting. They wield not only weapons but also the power of the government, symbolizing their legal authority.

It provides guidance on how Marshals can influence the game world through law enforcement, policy implementation, and interaction with other political entities.

A Marshal leadership campaign is about maintaining order and expanding civilization’s reach. It is a path less traveled but offers a rich experience for those interested in a different aspect of governance.

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A Mercantile leadership campaign usually starts small after a series of traditional adventures. The adventurers may decide to purchase a tavern or fest hall to serve both as a base of operations and a place to gather rumors. A more mobile campaign may center around the purchase of wagons, horses, and trade goods. There are many stories of adventurers who start their career by guarding caravans. Many of the same adventurers know that money comes from trade, not protecting trade. One aspect of trade is being of service to those caravan companies. A lone fortified inn on a deserted wilderness road with a blacksmith and wheelwright can charge what it wishes to the merchant caravan being harried by bandits while suffering from damaged wagons.

Adventurers who choose to play the long game may build a chain of fortified inns along a well established trade route to support their own caravans while charging rival merchants exorbitant fees. The Mercantile leader may also work with a political leader or military leader to build larger settlements along the trade route or to act as additional hired protection against bandits and hungry monsters in the wilderness.

A Mercantile leadership campaign has similarities to other leadership campaigns and has a relatively low barrier to entry. As the Mercantile leader builds their wealth and property holdings they may work with other leaders or combine leadership portfolios. The combination would lead them into activities conducted by other leaders such as clearing wilderness for settlement, but would be backed by Mercantile activities as opposed to stealing treasure from monsters in the area to finance settlement building. A Mercantile leader may find that the road to wealth and power involves other leaders and not dusty old tombs.

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An adventurer may be called upon by one or more of the gods to carry out missions beneficial to the deity and the faith. One does not need to start their career in the clergy. A warrior may gain the attention of those who serve Tempus, Lord of Battles. A wizard may gain the attention of Mystra, Goddess of Magic. This may even if the adventurer did not set out to gain the attention of the divine realm. Their heroic deeds may also influence the followers of certain deities to hold them as an example of living their life to the deity’s creed. It is quite possible that one could become a spiritual leader without seeking that responsibility.

What does a spiritual leader do? At the most basic level the spiritual leader supports the message of one or more deities. This could mean spreading the word of the deity or protecting those of the faith from harm during pilgrimages. In many large cities the authorities will protect a business or temple only on the outside. Security inside the building is the responsibility of the business owner or the temple. A spiritual leader may be responsible for the protection of the priests and visitors that wish to pay homage to the deity. A spiritual leader on the frontier may build a new shrine or temple with the intent of attracting followers.

A spiritual leadership campaign is another diversion from dungeon crawling and monster slaying. It can have many elements of wilderness exploration and taming. Political intrigue is also present and may include not only politics within the spiritual organization but that where it intersects with the secular politics of the ruling council or monarch. It is another of many ways to become an influential leader in the community.

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Fighting for the sake of fighting may give meaning to some adventurers, but the military leader seeks to defend something of great personal value. Are you defending your homeland from outside invaders? Is your patron a religious institution that you seek to defend from heretics and opposed face? Are you a knight who has sworn an oath to principles larger than yourself? Is money your only motivator and you sell your sword to the highest bidder? Is the best defense a good offense where you preemptively attack your neighbors or is deterrence the best policy? These are questions you should ask yourself when embarking upon the life of a professional military leader.

Next you should consider where you will be a military leader? You may not travel far if you are defending a homeland. If you are a mercenary for hire you may travel across the continent or the world. Are you a conqueror? You may travel to wealthy areas that are poorly defended and make what is theirs yours.

The military leadership campaign is not a traditional dungeon crawl. The would be commander must decide what type of military leader they wish to be before embarking on their journey. In future posts we will examine more in the life of a military leader.

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One of the more common ways of becoming a leader is to seek out a government and pledge loyalty to the rulership. Many adventurers solve the problems local rulers may face then they ride off into the sunset not sticking around for any rewards other than cash. Adventuring for money is a hard life and many local rulers may be in a better position to offer rewards other than money. The empty mansion, the abandoned sawmill, or other properties may be offered as compensation and an incentive to stay. Every rural village wants well-armed defenders to put down roots. Many rulers of large nations need loyal vassals to act as knights, sheriffs, magistrates, and governors. Adventurers who swear fealty could be given title and land to oversee in the name of the ruler. The locals would not just be any townsfolk but are now subjects of the adventurers.

Another way to become a leader is to find the land that has not been claimed by any other ruler and carve out a fiefdom. This is a more ambitious undertaking than relying on the wealth and power of a patron such as a king or queen. Instead the adventurer must build wealth to finance an expedition to clear land of monsters, pesky nature loving Druids, and other foes. Once the land is safe for settlers then the adventurer can begin taxing the locals in exchange for military protection. Taking one’s own land and ruling it has the advantage of being one’s own boss but there may be disadvantages as well. Other adventurers may covet the logging village or iron mine and attempt to overthrow the rulers. Or a neighboring kingdom may decide to expand its borders and annex what was a free fiefdom. The ability to control and defend one’s own land claims from other rulers is a key factor when choosing a location to build a fiefdom.

A rulership campaign has many similarities to a heroic fantasy campaign but with additional elements of administration and political intrigue. Adventurers who want to put down roots in their own community may wish to build that community on their own or through service to a noble Lord. It can be an interesting story for an adventurer in their later years or for a young ambitious person who wants more out of life than crawling around in dusty tombs and plundering old treasures.

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For this example, we will need Races of Faerûn and Fantasy Grounds Unity.

On p17 we have the height and weight stats for the Shield dwarf. We will begin by creating a table in Fantasy Grounds to mimic the table in Races of Faerûn.

Make table called ShieldDwarfMalePhysical

1-1

Col1: 50

Col2: [2d4]

Col3: 145

Col4: [2d6]

There will be only one entry on this table. We will set the die roll range to 1-1.

Col1 is the base height. Here we will enter 50 inches.

Col 2 is the random adjustment. Here we will enter [2d4]. Be sure to use the square brackets which will instruct Fantasy Grounds to treat as a die roll.

Col 3 is the base weight of a Shield dwarf male which is 145

Col 4 is the modifier to the weight which is [2d6]

Next, we will create our story template.

{:?ShieldDwarfMalePhysical:Test}

Height: [{#Test|1#}+{#Test|2#}] in.

Weight: [{#Test|3#}+{#Test|2#}*{#Test|4#}] lbs.

The first line selects our table and stores it in the variable Test while hiding the output.

The Height line adds the base height and the modifier together.

The Weight line rolls the 2d6 modifier and multiplies it by the height modifier from the Height line. It then adds this to the base weight.

When we click Generate on the Story Template we get the following output:

Height: 56 in.

Weight: 181 lbs.

Story Templates are a powerful tool for creating NPCs or environments. With a little time and input from Races of Faerûn you can quickly create NPC profiles with only a few clicks.

With 5th Edition pricing 2gp/day is reasonable for a skilled occupation such as guard or soldier. The 3rd Edition Arms and Equipment Guide suggests a daily wage of 2sp per day, but also assumes that the patron will buy their mercenaries equipment appropriate to their level, rank, or other status. Light foot soldiers start up cost is 20-90 gp for progressively better equipment. In the context of Icewind Dale, finding strong, armed humanoids that seek adventure to join your group is going to be difficult since most commoners are fishers or trappers. If all you need is muscle then bugbears may be the way to go.

The bugbear stat block provides insight into what we might hire them for. They have above average STR, DEX, and CON which makes them well suited for melee or ranged combat. Their WIS score is slightly above average which makes them suitable for bodyguard duty or standard dungeon delving. A below average INT and CHA score means they are not suited for puzzle solving, leading investigations, or trade negotiations. We would assume their leader Brekk would not have the standard stat block since he opened negotiations with the PCs and is business savvy. Their standard Chaotic alignment says they might be unruly, but since Brekk is supervising and has turned the group into sellswords they might be

Paired with the right group of PCs bugbears could round out missing skills. A party of all wizards could use some hard hitting melee attackers. In utility situations the combined strength of a group of bugbears moving a heavy object or forcing a door would be more than a group of wizards or rogues could muster. The additional muscle and size of bugbears could also give bonuses to an intimidation check performed by a high CHA character if using optional rules for “props” to obtain cooperation from the 3rd Edition Book of Vile Darkness. A bugbear with a big club is likely as effective as a knowledge cleric inquisitor with manacles and thumbscrews in scaring others into cooperating.

Bugbears would be worth hiring when compared to a human guard at the same price. The stat block indicates that they may need more supervision than a human guard, but good bosses always provide the appropriate amount of oversight.