With around half a million new companies formed annually in the UK and many more individuals opting for self-employment, start-ups are driving much-needed flexibility in the labour market. But while start-ups are plentiful, not all of them succeed. In fact, only about 20% of UK start-ups make it past their first three years. Despite the support initiatives available, the business failure rate has remained stubbornly consistent for decades.

A major UK government study on start-up failures, conducted over 15 years ago, revealed that the top reasons for failure were a lack of customers and poor cash flow/financial management. While it’s no surprise that insufficient customer demand ranked first, it’s frustrating to see many businesses with healthy order levels fail due to cash flow mismanagement.

Running out of cash is often blamed on late or non-payment of invoices (a notorious problem for micro businesses), but the root cause is rarely just financial. Many business owners have the financial knowledge to succeed but fail to apply it effectively. These fundamental issues can sink a business, whether it’s a lack of discipline, distractions, an overly optimistic approach, or poor forecasting based on weak market research.

Entrepreneurs need more than financial skills to manage finances in a start-up or any business successfully. They need a firm grasp of marketing and the right mindset and behaviours to implement these skills consistently. At the International Alliance of Entrepreneurs (IAE), we refer to these as the 3 Keys to Success and have developed the unique IAE Toolkit to equip entrepreneurs with the foundations they need to thrive.

There’s an adage that still holds: Cash is King! By joining the IAE, you can access the IAE Toolkit, where Level 1 is free exclusively for members. Through our workshops, mentoring, and global networking opportunities, you’ll ensure your business has what it takes to succeed. Don’t let cash flow issues undermine your potential—build a business that stands the test of time with the IAE Toolkit.

Sign up today and join a global community of entrepreneurs dedicated to success!