Why Do 80% of New Businesses Fail within 18 Months of Starting, and What Can You Do So That Your Business Isn’t One of the Casualties?

A reader wrote to me the following comment that I would like to address:

“With the Internet and various technologies that automate things like proper ad targeting, your main advice point is to WORK. No way around this, but if most are destined to fail, the few who manage will only spin wheels until they’re out of gas (so to speak), so building wealth is really the key to survival. Profit is meaningless if it doesn’t last, or isn’t at a minimum somehow leveraged for perpetuity.”

So let’s digest and address this reader’s comment/concern. I’ll start with an example from one of my clients.

Where Are Your Profits?

My client initially called me last summer wondering if I could help him with marketing and, in turn, scaling his business.

In the early stage of our conversation, I asked him how profitable his business was in 2017 and year to date in 2018. He advised that his company made $200,000 in 2017.

We then got to talking about how he was investing his profits. Although his business was profitable, according to the income statement as prepared by his accounting firm, he didn’t know where his…