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What’s The Most Common Reason Companies Go Out Of Business?

After 20+ years of working with CEOs, presidents and business owners, I’ve see just about every scenario with how businesses are run.  I’ve worked with very successful business people.  I’ve worked with the people who weren’t successful but with hard work and guidance became successful.  I’ve worked with, or should I say struggled with, the CEOs, presidents and business owners who just didn’t “get it”. Though there are many reasons why a company can go out of business, there is a key central point to keep in mind: sales and profit.

What’s the difference between the business people who are successful and the ones who are not? 

The answer isn’t complicated.  It’s not about the economy – during the Great Depression and more recently, the Great Recession, companies were created that survived and prospered.  It’s usually not about the product.

It’s about attitude.

You need to understand why you are in business.  Everyone in business says that they want to make a profit.  That’s the result of being in business.

You become profitable by:

  • having customers or clients
  • establishing and maintaining good business relationships
  • creating a great work environment for your employees
  • understanding the cost structure of doing business.


But here’s the secret that is no secret at all.  Successful business people understand that you must prospect, sell and close deals. Otherwise, it’s a matter of time till the company goes out of business.

Almost every time someone goes out of business it’s because they aren’t doing enough business.  The part of the business most people dislike is prospecting.  Prospecting and new potential clients are the lifeblood of your business.  Even if you think you have enough business, you never stop prospecting.  Not ever!

If you don’t believe that prospecting is an important element of your company’s sales cycle then your sales force won’t either.  Sales people would rather follow up on a lead that has come in by way of the internet, phone or referral than to actually go through the process of prospecting and looking for new business.  Of course, in addition to prospecting it is important to maintain the customer or client base you already have.

Prospecting is the first step to putting money in the bank and staying in business rather than go out of business.


To your success!


Business expert and strategist, Howard Lewinter, guides – focuses – advises CEOs, presidents and business owners throughout the United States across a wide range of industries, to MORE success – MORE profit – less stress. Business people trust Howard’s vast business knowledge, practical advice, intuitive insight and objective perspective to solve business problems and issues. Get MORE from your business! Talk business with Howard: 888-738-1855.

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