Why Business Fail! Answer Key
You know what you know and don't know what you should know.
This is not a test of intelligence but one of comprehension, retention and application. If you read and can’t remember what you read, you are wasting your time. As a paid subscriber, you are also wasting your money. When you understand something and can apply it to your life in some way, and only you know how, you will retain that information.
I have known a lot of perceived geniuses in my days, this is their secret, they do what they need to do to understand, apply it to their lives and they never forget it. You have to get emotional about the facts you discover.
In every post, there will be questions to act as a review, but also to assist you in reading. It helps when you know a test is coming so you will read more purposefully.
When you read 65.3% of business fail in 10 years, your application and emotional response should be that you have 2/3 chance of failure and a tough 10 year to get to that point. Every bit of information you find, here or anywhere, you will apply to your business and straighten your course. Maps work so well, we created the GPS.
We are yo have fun, but this is your life, we have to be serious too.
Answer Key
C) 65.3% - The article states that 65.3% of businesses fail within their first decade.
C) $124 trillion - Cerulli projects tha
t wealth transferred through 2048 will total $124 trillion.
C) 40% - Baby Boomers make up about 40% of small business owners in the United States.
C) 21.1x - Software company median EV/EBITDA multiples peaked at 21.1x in the first half of 2021.
B) Less than a third - Less than a third of these small business owners have a succession plan in place.
B) 44% - 44% of businesses that fail do so because they run out of cash.
C) 10 million - The Small Business Administration estimates that around 10 million businesses owned by baby boomers will exchange hands between 2019 and 2029.
B) Cash flow keeps you operating, business value makes you sellable - The article emphasizes that cash flow and business value are not synonymous; many businesses generate sufficient cash to survive but insufficient value to sell.
C) 66% - In today's market, 66% of small businesses face financial challenges.
C) Strong cash flow and efficient business models - Investors now prioritize strong cash flow and efficient business models over pure revenue growth.