Bill Canady shows how a $400 million distributor moved $4 million in SG&A spending into three growth areas and generated $12 million in additional EBITDA within six months. The point: reallocate resources to profit-producing parts of the business, not just cut costs.
I've seen a $400 million distributor redeploy $4 million of SG&A this way and put $12 million of EBITDA on the board in the next 6 months. It's to reallocate, to move people, money, and attention out of the parts of the business that do not produce profit and into the parts that do. The output should be $4 million of capacity moved to these 3 specific places expected to produce this specific growth amount owned by these specific people. The redeployment then is a deliverable. This savings is just the intermediate step. You don't want just savings. You want to grow this baby. And in order to do that, gotta have the resources available. I've seen a $400 million distributor redeploy $4 million of SG&A this way and put $12 million of EBITDA on the board in the next 6 months. That's right. Those resources get converted to growth. The $4 million was not the win. It was where it went when we got the win.
