Cashflow is the number one reason why startups fail

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Transcript:

(AI Generated)

Most businesses don't pay the owner. The statistics around businesses not making it past a year. And then businesses not making a past two years, businesses not making past five years. In the pandemic cash flow problems was the number one reason businesses fail.

Honestly when your business fails, it's not it's because you don't have money to keep going. It's literally all about money. Life is much more than money, but owning, operating and creating a successful business is ensuring that you have cash flow to continue your business to continue serving your clients, to continue producing the thing that you're selling to do the thing that you're doing.

And if we want to beat those statistics, then we need to be aware and more intentional about how we manage money in our business. For most business owners, money comes in and it's already been spent. But there can be another way. And that happens when you're more aware of what you're spending your money on. How many times do you do a quarterly, an whatever, and look at all of the expenses of your business and then decide, do I really need that? We were talking about SEO. Offline, right? Many people when they first start out, they're spending a ton of money on branding and SEO and whatnot. But have they done market research? Have they talked to their ideal customers and decided what their pain points are and if they're selling the right thing.