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82% of Business Failure is Due to Poor Cash Management (INFOGRAPHIC)

October 14, 2019

The first year of operation for small businesses is full of challenges. And when it comes to capital, most of them rely on personal savings and income from another job.

The data comes from SCORE’s second part of a three-part series titled Megaphone of Main Street. In the first part, which is titled Finding Your Way, Finding Customers, SCORE looked at starting a business and finding customers.

So, it makes sense the second part is addressing the challenges of financing. Why, because of the lack of capital or running out cash is the second most common reason for business startups to fail. According to SCORE and a U.S. bank study, 82% of business failure is because of poor cash management.

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