{"id":5239,"date":"2019-03-07T16:34:48","date_gmt":"2019-03-07T14:34:48","guid":{"rendered":"https:\/\/www.lending-express.com\/blog\/?page_id=5239"},"modified":"2019-07-25T10:43:47","modified_gmt":"2019-07-25T07:43:47","slug":"82-of-businesses-fail-for-this-reason","status":"publish","type":"page","link":"https:\/\/www.become.co\/blog\/82-of-businesses-fail-for-this-reason\/","title":{"rendered":"Escape The Statistic: 82% of Businesses Fail for This Reason"},"content":{"rendered":"\n

50% of businesses fail within the first five years, and that figure shoots to 70% in the 10th year according to the SBA – but why<\/i>? And how do you make sure you\u2019re on the right side of the coin toss?<\/p>\n

Why small businesses fail<\/h2>\n\n

According to Jessie Hagen, U.S. Bank, 82% of the time, small businesses fail due to one simple reason: poor cash flow management.<\/p>\n

Whether it\u2019s a lack of capital, poor money management or overwhelming budgets, it all points back to cash flow.<\/p>\n

After getting your head around the failure rate, it\u2019s only natural to feel nervous – no one wants to put their dream to bed. Unfortunately, we don\u2019t know what the future holds, how your product or service will change with time, or whether you\u2019ll qualify for the funding you need. But with the right planning and decision making, you can make sure that you\u2019re not part of these ugly statistics.<\/p>\n

How do you know if you have a cash flow issue?<\/h2>\n\n

Put simply, if your business is spending more than it makes then you\u2019ve hit the nail on the head.<\/p>\n

Warning signs to look out for:<\/b><\/p>\n

    \n
  1. You\u2019re running out of working capital<\/li>\n
  2. Overtrading – your handling more business than your funds and resources available<\/li>\n
  3. Outstanding receivables are piling up – people aren\u2019t paying you!<\/li>\n
  4. Missing discounts – payables over terms<\/li>\n
  5. You\u2019re bouncing checks – you\u2019re writing checks your bank can\u2019t cash<\/li>\n<\/ol>\n

    If you don\u2019t have enough cash to execute your plans then something is backward. If only you could fulfill your plans and vision, your business could avoid failure.<\/p>\n

    To succeed, you need to get on top of your cash flow: <\/b><\/p>\n

      \n
    1. You\u2019ll need to know how to manage cash flow effectively<\/li>\n
    2. Learn how to accurately use cash flow forecasting to make future projections and better your business decision making<\/li>\n
    3. Then you\u2019ll need to find the right business funding solution to suit your projections and goals<\/li>\n<\/ol>\n

      Now you may be thinking that\u2019s \u2018easier said than done\u2019, but this unique service will do all the hard work for you.<\/p>\n\n

      \n

      Become enables both struggling and stable small businesses to become more successful by improving their funding odds and providing optimal funding solutions (totally free).\u00a0
      <\/i>See if I qualify >><\/i><\/b><\/a><\/p>\n<\/blockquote>\n

      Access to capital has a bad rep<\/h2>\n\n

      Having access to credit is the lifeline for a business. A lack of funding is the primary reason preventing ambitious entrepreneurs from growing their business.<\/p>\n

      60% of small businesses have no funding options and don\u2019t know how to solve this. The fact is, a huge proportion of businesses are turned away by the banks while harming their credit score. Those small few that do <\/i>manage to get a business loan, have to endure a lengthy bureaucratic process, only to take a few months to actually receive the funds in their pocket. <\/p>\n

      The system is <\/b>flawed<\/i><\/b>.<\/b><\/p>\n

      Become is here to break that system and get businesses the funding they deserve.<\/p>\n

      Why Become?<\/b><\/p>\n