The Reason Most Businesses Fail

Did you know that Apple has 178 billion dollars in cash reserves, as revealed in 2015?

One commentator joked that with that amount of cash, they could give all 320 million Americans $556 each.

The good thing about money is that it’s measurable. The amount of cash you have to pay your bills gives you a good gauge of how well your business is doing.

Sadly, most businesses run out of cash to pay their bills. In this video, I show you the statistics about business failure and talk about the causes.


In 2011, the U.S. Bureau of Labor Statistics charted the survival rate of businesses started between 1994 and 2010.

Half of all the businesses surveyed failed within their first 5 years. As for those businesses that started back in 1994, 17 years before the results were finalized, three quarters of them had failed over that 17 year period.

It’s common knowledge that most businesses fail. Some people will take the view that because failure is more probable than not, it’s not worth even starting.

Of course, if you’re reading this, you’re not one of those people. But you still need to understand the reasons why business failure happens, so that you know what to avoid.


Everyone has their opinion on why businesses fail.

Some say it’s because new business owners give up too quick. Some say it’s because they don’t realize how much time and money it’s going to take. Some say it’s because they choose a flawed business model that’s not scalable.

All these reasons are valid, but at MOBE, we believe there’s one overarching reason that encompasses them all – that most new business owners don’t know how to run a business.

Most new business owners – perhaps yourself – have come from the employee world. They are used to being accountable to someone, and being provided with all the knowledge they need to do their job.

When you’re the boss, you don’t have those luxuries. No one is going to hold you accountable but yourself. Often, you need to go and find the knowledge for yourself.

That can take some getting used to, but MOBE is here to help. We want to equip new business owners with the right skills and help you avoid failure.

You can access more beginner business strategies like this one, and learn how to model the “thinking patterns” of the world’s most successful business owners and entrepreneurs, in the MOBE Silver Masterclass. To learn more about the Silver Masterclass, click HERE.