One of the Top Ways to Ensure Your Business Will be Successful

Cynthia Wylie
2 min readFeb 17, 2024
Photo by Jason Blackeye on Unsplash

You can beat the odds.

Yes, it’s true. Startup failure rates vary by industry, but the average, according to the Bureau of Labor Statistics, is 90% of startups fail before their tenth year.

Is it possible to inoculate your business against some of these reasons for failure? I am here to give you an emphatic, YES!

How do you improve your chances?

First, know the most common reasons for business failures.

A terrific compilation of startup failures in a November 3, 2023 article by Josh Howarth, “Startup Failure Rate Statistics” in Exploding Statistics breaks it down:

In regards to cash flow Mr. Howarth states,

“Cash flow problems contribute significantly to the business failure rate in the United States. Most entrepreneurs who launch with insufficient funding, product or service prices that are not market-related, or optimistic sales projections end up with a failing startup.”

To be sure, there are other very important things, like making sure you have a good service or product that people actually want.

Your business must offer a clear solution to a specific problem.

Have you done research on your market and your pricing? Are you clear about what problem your company solves? Does it do that better than your competitors? Do you have experience doing what you want to do?

And one of the most important questions is:

How much capital do you need to start your business?

To ascertain that answer, you need to do a set of cash flow projections.

If you can’t do that, either learn how or hire someone to do it.

If you are undercapitalized from the get go, it’s going to be tough.

Now, I don’t tell you this to dissuade you from launching your dream company.

And I certainly don’t want to give you an excuse to delay moving forward with said dream company.

I only offer this advice to warn you to go in with your eyes wide open, educate yourself, and do your research.

I also want to see you succeed!

The good news is, there are so many creative ways to solve cash flow problems and I’ll write more about that next time.

Question: How much cash do you need to start your company?

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Cynthia Wylie

Founder of Bloomers Island. Published children’s book author at PRH. Writes about big kid’s stuff like economics & business, too. TheProjectConsultant.com.