(Picture: Mt. St. Helens eruption, May 18, 1980. Richard Bowen, Oregon Live)
Overcoming Significant Change
At 8:32 AM on May 18th, 1980, it finally happened. From my house, I was able to see Mt. St. Helens erupt over the Portland west hills. It was a sight that I will never forget.
The long awaited Mt. St. Helens eruption was fierce and awe-inspiring. The pressure had built up, a 5.1 earthquake collapsed the north slope of the mountain and created a blast equivalent to 24 megatons of TNT. The ash column reached 12 miles into the sky and continued blowing for 10 consecutive hours. The sky turned dark and ash fell from the sky. Ash and mudslides destroyed 4 billion board feet of timber and current day estimates of $3.4 billion in damage. An estimated 57 people died from the blast and surrounding effects.
After the eruption, the mountain decreased in size by 1,370 feet and was barely visible from our house.
Small Business Survival Rates
In terms of business, explosive changes in technology, interest rates, and inflation, begs the question, will your business be visible in the future?
According to the SBA, there are 33.3 million small businesses in 2024, which represent 99.9% of the total number of businesses.
Gartner defines an SMB (Small or Medium sized business) as follows:
A small business has fewer than 100 employees and less than $50M in annual revenue.
A medium-sized business has between 100–999 employees, and revenue between $50M and $1B.
If you are a small to medium-sized business owner, you are probably aware of the sobering statistics from the SBA:
20% of businesses fail in the first year.
50% of businesses implode within 5 years.
70% of businesses do not make it to their 10th anniversary.
But let’s look at the good news, 30% do make it to Year 10. Any business that has survived 10 years, has most likely experienced at least one down economical cycle. This is a testament to those entrepreneurs, who figure out a way to survive and to create consistent value in the marketplace.
Overcoming Obstacles to Create Business Net Worth to Cash
The scary part for the typical business owner, 90% of their business net worth is tied up in their business.
OBSTACLE #1: If the business owner is unable to create the right amount of value, their lifestyle and their retirement is at risk.
OBSTACLE #2: ONLY 50,000 business owners are able to sell their business on an annual basis.
This is equivalent to 0.15% of total businesses. You read that correctly, far less than 1% are able to sell their business every year.
OBSTACLE #3: ONLY 1 in 20 business owners, or 5% grow their business to $1 million in revenue. Less than 1% grow their business to $10 million in revenue.
OBSTACLE #4: It’s far more likely to sell your business, if you are able to grow your profits to > $1 million in revenue.
Overcoming these obstacles are a challenge, but incredible rewarding when you reach your intended destination. HBR Research shows a clear strategic plan, designed specifically for you, combined with coaching and accountability increases your success by 3x.
Picture: Image credit: Jon Major, USGS. Used in accordance with federal copyright (fair use doctrine) law).
Mt. St. Helens Recovery
Over 40 years later, Mt. St. Helens, landscape and timber has had a miraculous recovery. Even the greatest of explosions, can be turned around with time and perseverance. Whether you are a business owner, in explosive growth, or recovering from challenging obstacles, 40 Strategy is here to help you reach your destination.
Lost at CEO Update
Believe it or not, but it’s been one year since Lost at CEO was published on May 15th, 2023. What a game changer that has been! We are so grateful for our readers, fans, and clients who have adopted the CAPTAIN Strategy method to change the way to grow their business.
Read my book, Lost at CEO, An Entrepreneur’s Guide to Strategy to find a better way to overcome obstacles to help your company climb to the next level.
Available on Amazon.com, Barnesandnoble.com, and Audible. The Kindle version is currently available for our anniversary celebration at $.99.
(Picture: Lost at CEO, London Bridge, Lake Havasu City AZ)
Measure Success Podcast
Addison Adams | Mastering M&A: Legal Tips from Addison Adams
We were excited to have Addison Adams with us. Addison is a top expert in helping companies join together or buy one another, and he is the founder of Adams Corporate Law.
You’ll Learn About:
- The Basics of Mergers: What you need to know before you start.
- Common Mistakes: How to avoid the usual pitfalls.
- Making the Deal Work: How to make sure everyone benefits.
Tune in to gain valuable insights that could help you make smarter decisions in your business dealings.
Phil Johnson | Boost EQ for Success: Insights with Phil Johnson
In next week’s episode, Phil Johnson shares his insights on the threats of rapid global change and the critical need for developing emotional intelligence. As we navigate through the complexities of modern life, Phil emphasizes the urgency of evolving our emotional capabilities to keep pace with technological advancements and societal shifts. Have you read Phil’s book The Servant Warrior Leader?
Our new 4-minute, daily mini-podcast series starts June 3rd called $4M Strategies™! Be sure to subscribe to our 40 Strategy™ YouTube channel.
Read more about the $4M Strategies™ mini-cast here.
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