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You Can’t Prosper if You Can’t Survive

Nick Dark, former VP of Manufacturing for Reebok, and now a respected business consultant  once told me:  The first responsibility of any business is to stay in business.

Believe it or not, staying in business is monumentally hard to do.  If it were easy, 95% of small businesses would still be in business five years later.  Oh, and your start up, even with $23 Million in funding is still a small business.
That means you probably should understand the common causes of business failure really are.  The real killers aren’t dramatic, big mistakes or even being crushed by the competition. Small business is a lot more likely to be killed by the boring and mundane: lack of  money, bad accounting, poor use of funds, failing to bill customers and bickering partners.
Part of the reason survival is difficult is that survival is a learned behavior, and requires that you have a lot more than a big idea or great product.
You have to have a real company, and real companies get the boring and mundane stuff right.

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