The Small Business Administration (SBA) keeps tracks of all sorts of business statistics and data so that we can understand if we are in a good economy or a bad economy. Personally, I try not to pay attention to it. Because whether the announcers are breathless with excitement about growth or hyperventilating about the next market correction – I don’t generally find the information overly useful to me as a selling professional.

Either I am going to make the sale and feed my family, or I won’t.

Do you know why most businesses fail?

Eric Wagner at Forbes Magazine (not related to the graphic above) wrote an article 6 years ago that talked about “5 reasons 8 out of 10 Businesses Fail.” I would have said that Ca$h flow is the number one reason most businesses fail. He rewrote this as reason number 5, “inability to nail a profitable business model with proven revenue streams.” Even though I love to turn a good phrase, I think “cash flow” is a better way to say it. In fact, in my opinion though he doesn’t say it, he listed the reasons in order from least to greatest.

Number 4 was a leadership breakdown at the top. Number 3, failure to communicate value propositions in a clear, compelling & concise manner. Number 2 is a failure to differentiate. Then number one was not really being “in touch” with your customers through “deep dialogue.” Another source lists the reasons in the infographic below …

Let’s focus on the first two: cash flow and leadership. John Maxwell is famous for saying “everything rises and falls on leadership.” All of the first three (1-3), are really leadership related.

People find themselves in a leadership role for a variety of reasons: earned, inherited, hired, de facto, de jure, and the two that clash the most “I have the ideas” clashes with “I have the gold.”

Sometimes success can be accidental, and of course we love that kind of serendipity. But, for most of us reality is a cold shower on our dreams each morning as we strive to break out of the molds that have been pushed on us either by force or by simple and base circumstance.

Whatever your scenario, I would love to help you navigate a profitable path to your future!

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