4 Reasons Great Businesses Fail — And How to Make Sure Yours Doesn’t

Published On - December 21, 2021

Ted Bonel 2. STRATEGY

 

Every founder starts with optimism.
You have a great product, loyal customers, and a small but mighty team.

Then — almost without warning — momentum slows. Cash tightens. Key people leave. And the same business that once looked unstoppable begins to stumble

The truth is, most businesses don’t fail because of one catastrophic mistake.
They fail because of four predictable breakdowns that every leader can see coming — and prevent.

Let’s unpack them.

 

#1 Strategy — Creation and Execution

A brilliant strategy on paper means nothing if it never comes to life.

“Vision without execution is hallucination.” — Thomas Edison

Strategy is your roadmap for where the business is going — your vision, target markets, value proposition, and competitive edge.

But strategy only works when it’s actionable and aligned.
You must connect long-term vision to short-term priorities.

At Amazon, for example, every decision ties back to one vision: to be the world’s most customer-centric company.
That focus has guided two decades of relentless execution.

A great strategy starts with clarity — and lives through discipline.

 

#2 Systems & Execution— Principles, Practices, and Procedures

As your business grows, chaos grows faster.Systems are what keep complexity from killing momentum.

Strong systems streamline routine work and allow teams to focus on innovation and customer value.

  • Your marketing system defines how leads move through the funnel.
  • Your hiring system ensures you consistently attract and retain A-Players. (We use Topgrading for this.)
  • Your meeting system keeps communication focused and accountable.

Systems don’t slow you down — they let you scale up.

 

#3 Cash — The Oxygen of Growth

Cash flow is the single biggest reason otherwise successful companies fail.

When you run out of cash, you run out of options.

It’s one of the four critical decisions in the Scaling Up framework — People, Strategy, Execution, and Cash — and often the one most overlooked.

Cash problems rarely appear overnight. They creep in quietly through slow collections, poor pricing, over-hiring, or lack of forecasting discipline.

Get proactive:

  • Monitor your Cash Conversion Cycle.
  • Apply the Power of One framework — small, 1% improvements in price, margins, or receivables can dramatically improve cash position.

Cash gives you confidence — and choices.

 

#4 People — The Ultimate Differentiator

Your people are your most expensive investment — and your greatest source of competitive advantage.

According to Gallup’s State of the Global Workplace report, only 14% of employees in Australia and New Zealand are engaged at work.
That means 86% of potential energy is untapped.

Engagement isn’t about perks — it’s about purpose and alignment.
When people know the mission, feel valued, and trust leadership, performance soars.

To build a high-performing culture:

  • Hire for values, not just skills.
  • Build psychological safety so people speak up early.
  • Coach and develop leaders at every level.
  • Communicate with clarity and transparency.

As Herb Kelleher of Southwest Airlines once said:

“A company is stronger if it is bound by love rather than by fear.”

People drive profit — but leadership drives people.

 

The Scaling Up Connection

These four areas — Strategy, Systems, Cash, and People — are the pillars of the Scaling Up methodology.

When they’re strong, your business grows sustainably.
When even one weakens, the entire structure starts to wobble.

The good news? Every weakness can be strengthened — with focus, measurement, and accountability.

So ask yourself:

  • Which of these four areas could derail your business if left unchecked?

Because the best time to fix the cracks is before they widen.

Ready to strengthen your company’s foundation for sustainable growth?

Contact me at tedb@strategyandexecution.com.au to schedule a free 30-minute discovery meeting.

To Scale Up your business! Take our Scaling Up/Four Decisions Needs Assessment to discover how your business measures against other Scaled Up companies. We’ll contact you.

Strategy and Execution Business Advisors and Scaling Up Coaches in Brisbane & Australia

TED BONEL, SCALING UP PRACTITIONER – STRATEGY & EXECUTION BUSINESS ADVISORS

Are you looking to scale your business and execute strategy with clarity and impact? I help CEOs and founders turn big ideas into real-world results, guiding small to mid-market companies through tailored strategic insights that drive growth.

My expertise lies in simplifying complexity – bridging high-level strategic frameworks with the practical realities of running a business. Unlike many consultants who focus solely on theory or execution, I specialise in both—translating strategy into actionable, transformative steps that deliver lasting results.

Ready to strengthen your company’s foundation for sustainable growth?

Contact me at tedb@strategyandexecution.com.au to schedule a free 30-minute discovery meeting.

ABOUT STRATEGY & EXECUTION

For over 20 years, Strategy & Execution has supported leaders and organisations in developing and executing winning strategies. We provide expert facilitation, executive education, and hands-on consulting to help businesses refine their strategic direction and implement it effectively.

Using proven methodologies like Scaling Up, E-Myth Mastery, Outthinker, and more, we challenge conventional thinking and equip organisations with the tools to accelerate growth. Our approach is dynamic—combining deep business experience with practical execution. We don’t just advise; we roll up our sleeves and work alongside you to make strategy happen.

If you’re preparing for a strategy development or execution challenge and are committed to creating real value, we’d love to hear from you. Learn more about our work or upcoming workshops