80% of Businesses Fail Within 5 Years: How This Ex-Marine Shields Entrepreneurs Through Business Credit Mastery
Summary of episode
What if I told you that nearly 80% of all businesses fail within five years, with most failing in their first year? As a self-employed consultant, those statistics should make you sit up and pay attention.
But what if there was a way to dramatically improve your odds?
My conversation with William Graham on the Thriving Through podcast revealed exactly why so many businesses become failure statistics β and more importantly, how to avoid that fate.
William, a former Marine who spent 20 years in service before transitioning to entrepreneurship, has built his entire business around helping entrepreneurs beat those staggering odds.
The Hidden Foundation Most Consultants Miss
William's mission is simple but powerful: "Help businesses avoid becoming failure statistics."
Through his work in business credit and lending, he's discovered that most business owners β including self-employed consultants β make critical structural mistakes from day one that set them up for failure.
"If you take your business to the bank and you say, 'Hey, I want a business loan or a line of credit,' they'll look at your business, and if you haven't hit all these [125 credit profile points], then they look at it as being not a valid business," William explains.
The result? You're forced to provide personal guarantees, mixing your personal and business finances in ways that can devastate both.
The Time-Blocking Strategy That Actually Works
As a solopreneur managing multiple roles, William shared his practical approach to time management that goes beyond typical productivity advice. His time-blocking method isn't just about scheduling β it's about strategically positioning yourself to eventually "fire yourself" from day-to-day operations.
"I'm a profits first kind of person," William notes. "Money's in my hand, now I know where to spend it." He uses percentage-based allocation across different "buckets" β taxes, business expansion, hiring funds β ensuring he can scale systematically rather than haphazardly.
The Lead Generation Evolution
William's approach to lead generation offers valuable lessons for consultants struggling with business development. He tested virtual assistants for lead generation for three months, tracked the data, and is now transitioning to paid advertising.
The key insight? Give each strategy adequate time to prove itself, but don't marry any single approach.
"Try things, give them some time like 3 months is a good timeframe. Put your best effort into it, give it a try, but you're not married to it," he advises.
This iterative approach prevents the feast-or-famine cycle many consultants experience.
Building Relationships, Not Just Making Sales
Perhaps most importantly, William emphasizes that successful business development isn't about being a great salesperson β it's about building genuine rapport.
"People don't like to be sold to... it's about building a rapport, you know, just letting people know you understand."
His approach centers on getting prospects talking about their projects and challenges, then positioning himself as someone who understands their struggles (he's also a real estate investor, which helps him relate to many of his clients).
The Data-Driven Approach to Marketing
William's use of CRM technology to track every stage of his sales funnel provides a blueprint for consultants wanting to optimize their marketing efforts. He can see exactly where prospects drop off, allowing him to refine messaging and improve conversion rates systematically.
"With my CRM, I can actually track the data. And so what I'm able to do is see how long somebody has been in that funnel, when they went into the funnel, did they bounce out, or did they go through to completion?"
The Biggest Challenge Ahead
When asked about his biggest challenge moving forward, William's answer reveals crucial insight for any consultant looking to scale: "Getting the right people in the right places."
The transition from solopreneur to business owner requires not just finding good people, but finding the right fit for each role.
Ready to hear the complete conversation and discover more strategies for building a resilient consulting business? Listen to the full Thriving Through podcast episode with William Graham and learn how to structure your business for long-term success, implement effective time-blocking strategies, and build systems that will help you avoid becoming part of the 80% failure statistic.
Episode Highlights:
- William's Background: After 20 years in the Marine Corps and corporate experience, William started his business credit consulting firm in September 2023.
- The Failure Statistics: Nearly 80% of businesses fail within 5 years, with most failing in the first year. William's mission is to help business owners avoid becoming part of these statistics.
- Business Credit Importance: There are 125 points in a business credit profile that banks evaluate. Without proper business credit, owners are forced to provide personal guarantees, putting personal assets at risk.
- Legal Protection: William explains "piercing the veil" - how commingling business and personal finances can expose personal assets in legal disputes.
- Profits First Approach: William describes his financial management strategy of allocating revenue into different "buckets" for taxes, operations, hiring, etc. using Relay Bank.
- Time Management: As a solopreneur wearing multiple hats, William uses time blocking to structure his day efficiently.
- Marketing Evolution: From using virtual assistants for lead generation to transitioning to paid advertising on platforms like TikTok and Instagram, William takes a data-driven approach to testing strategies over 3-month periods.
- Target Clients: On the business credit side, William focuses on businesses under 5 years old with less than $1M in sales and fewer than 20 employees. His lending services primarily target real estate investors.
- Future Challenges: William identifies finding and hiring the right people as his biggest upcoming challenge, with the goal of building a team that allows him to work "on" rather than "in" the business.
Connect with William Graham on LinkedIn: https://www.linkedin.com/in/grahamwilliamc/