James Laughlin (YouTube) argues the number one reason new businesses fail is cash flow problems stemming from poor money management. He emphasizes that many founders are creatives and visionaries who may lack accounting skills, and recommends relying on accountants or CFOs to manage the financial side to improve chances of success.
The number one reason that businesses fail, particularly in the first few years, is cash flow problems. What does that come down to? Managing money. Look, people who start businesses are often creatives. They are often visionaries. You know, think of Richard Branson. Visionaries, right. Not all visionaries have great mathematical accounting brains. I'm one for sure. Right. I like to be creative and think and be entrepreneurial. But I have an accountant. I work with a lot of companies who have amazing CFOs. There's no way the founder, president or CEO would take on the responsibility, responsibility of all the financial side of things. They've got a CFO to take care of that. So cash flow problems. Managing money is a crucial, crucial aspect of making sure that you succeed in business.
