Bill Canady shows how a $150 million manufacturing company can boost EBITDA by $4.5 million in a year by raising its margin from 12% to 15%. The key: pick exactly two priority initiatives and get the CEO to commit to nothing else.
Let's go through an example now. So back to the manufacturer, $150 million in revenue, about 12, about 12% EBITDA, call it $18 million. The goal of meeting 1, improve EBITDA margin by 300 basis points in 12 months. 12 to 15 on $150 million of revenue. 300 basis points is $4.5 million. Now that's specific. We like that. 2 moves. All right. He picked 2 and he said no to everything else, right? CEO's got it now. Know where I'm going. Everything's going to go to that, which was the actual hard part of that meeting was actually landing. It's tough.
