Ep. 244 - 3 Common Reasons Business Struggle
In this episode of Thriving in Tandem™, Robert and Kay Lee unpack three of the most common reasons businesses struggle — drawn from their own entrepreneurial journey, client experience, and research from the U.S. Chamber of Commerce.
If you’re a married entrepreneur feeling financial pressure or team tension, this conversation will hit home.
1. Cash Flow Problems (Not a Sales Problem)
Contrary to popular belief, most struggling businesses don’t fail because of poor marketing or low sales.
They fail because of cash flow mismanagement.
The Chamber of Commerce research highlights:
Cash flow issues
Lack of capital
Poor management
Human capital challenges
Notice what’s missing? Marketing and sales.
Profit Doesn’t Equal Cash
Many business owners rely solely on their Profit & Loss statement. The problem?
Most P&Ls are set up on an accrual basis, meaning revenue is recorded when invoiced — not when cash hits your bank account.
You might show:
$100,000 in revenue
$15,000 in profit
But still feel broke.
Why?
Because:
Clients haven’t paid yet (accounts receivable lag)
You’re paying down loans or credit cards (liabilities don’t show on P&L)
Merchant fees and interest are draining cash
You’re behind on invoicing
The Danger of “Let’s Just Increase Sales”
Growing sales without fixing cash flow can actually accelerate failure.
If:
You must pay for materials upfront
You don’t get paid until delivery
You rely on lines of credit to float expenses
Then doubling sales can double your cash stress.
Before scaling, make sure your cash systems can sustain growth.
Action Step:
Review your P&L, cash flow statement, and balance sheet together — not in isolation. If this isn’t your strength, bring in a qualified financial advisor who understands small business cash flow, not just bookkeeping.
2. Lack of Capital (Often a Symptom, Not the Root Cause)
Running out of money is usually the result of poor cash flow management.
Many businesses don’t collapse because demand disappears.
They collapse because:
They underestimated startup costs
They overspent during growth
They relied too heavily on debt
They didn’t manage receivables aggressively
At the end of the day, businesses fail when they run out of cash — not necessarily customers.
3. Human Capital Challenges (Hiring, Training, Retention)
The third major struggle? People.
Common issues include:
Difficulty finding quality team members
High turnover
Weak onboarding
Lack of ongoing development
Start with Smart Hiring
Consider:
Contract-to-hire models
90-day trial periods
Clear role definitions and performance metrics
This reduces risk and gives both sides time to evaluate fit.
Training Is Not One-and-Done
Initial onboarding isn’t enough. The first year is critical.
Even experienced hires require:
Clear expectations
Regular feedback
Continued development
Intentional culture building
Hiring and firing repeatedly is expensive — financially and emotionally. Investing in people development is not optional if you want sustainable growth.
The Bigger Picture
Most business struggles boil down to:
Poor cash flow management
Running out of capital
Weak people systems
And here’s the reality for married entrepreneurs: When business stress rises, it spills into your marriage. That’s why mastering financial systems and building a healthy team isn’t just about profit — it’s about protecting your home life.
If this episode resonated with you, share it with another married entrepreneur who needs to hear it.
Want to live a better balanced life and win in marriage AND business at the same time? Purchase our (audio) book Tandem: The married entrepreneurs’ guide for greater work-life balance. https://www.thetandembook.com/
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Need some insight into how to balance it all? Schedule a free discovery call. https://marriedentrepreneur.co/lets-talk
