Page 37 - Lean six sigma demystified

16 Lean Six Sigma DemystifieD

Sigma comes with an exorbitant price tag and lengthy implementation process
that most companies can’t afford. That’s why I distilled the essence into Lean
Six Sigma Demystified.

Plug the Leaks in Your Cash Flow

Have you been overlooking the biggest profit-making opportunity in your business?
Are you so busy trying to recruit new customers by selling and marketing harder to
a relatively stable market segment that you’ve failed to uncover the hidden profits in
your business? Are you so busy trying to create innovative products that you’ve over-
looked opportunities to increase your bottom line by creating innovative processes?
I’m willing to bet that your business can be a lot more profitable than it is now. Lean
Six Sigma gives you the methods and tools to plug the leaks in your cash flow.
I’ve worked with businesses ranging in size from a muffler shop to a Baby
Bell. I’ve worked in hospitals and bulk-mail shops. I’ve helped businesses save
millions that could be added to the bottom line in less than 6 months. The
processes and tools are simple, but almost every business overlooks this oppor-
tunity to bank more cash and boost the bottom line.
In business, it doesn’t matter how much money you make; all that matters is how
much you keep. Lean Six Sigma can help you hang on to a lot more cash, and
using this book, you can do it without spending a fortune.

Every Business Has Two Sources of Cash Flow

Cash is the lifeblood of your business. To boost profits, you will want to earn

more or lose less. Every business has two sources of cash flow.
1. External customers give you money for your products and services.
2. Internal processes that leak cash like a rusty bucket. Why are internal
processes a source of cash? Because when you plug the leaks in your
cash flow you get to keep all that money! And it’s a lot of money—25%
to 40% of your expenses.
I’d like you to consider that businesses spend most of their time and
money focused on trying to fill the cash bucket with new customers and
virtually no time or money plugging the leaks caused by internal processes.
Almost every company will spend a small fortune trying to gain a slight edge
in sales and marketing that will allow them to get or keep a customer. The