Why 98% of New Businesses Fail


Why do 98% of all new businesses fail within their
first 2 years? (That is ALL businesses, not just MLM.)

Hill gives us a thorough lesson in economics in Chapter

There’s an old saying… “If a man will not work, he
shall not eat.”
(2 Thessalonians 3:10)

As civilizations grew, the demand for the Services of
specialized skills increased. As we entered the
Industrial Age and now, the Information Age, it became
impossible for any one person to be proficient in every
skill needed by the community.

So we bartered our Services and developed currency to
make trading Services easier.

Yet somehow, since the dawn of the Information Age, an
entire generation of Internet users have been
conditioned to believe they can earn money without
productive work or performing wanted Services!


98% of businesses are started by lazy people driven by
a Fear-based need to make money. (Fear is the root of
all Negative Emotions including Greed, Jealousy, Anger,
Hatred and Revenge.)

Our friend Jim’s uncle passed away and left Jim a nice
corner lot downtown.

When Jim was a teenager he enjoyed working on cars with
his buddies. So Jim figures a lot of folks need auto
repairs and maintenance and decides to open an auto
repair shop.

In the beginning Jim services some cars, does a good
job, and business picks up.

But Jim also like to take time off to go fishing. He
does not want the hassle of hiring, training and
supervising other mechanics.

So Jim takes cars across the street to Bob’s Auto
Repair to has them do the work. When the work is
complete he brings the cars back and bills his
customers what Bob’s charged him, plus 30% for his
profit – without any value-added services.

How long do You think Jim will stay in business?

With an MLM distributorship – You don’t invent or
develop the products; You don’t manufacture, package
and label them; You don’t process payments or ship the

So, what value-added Services will You provide to
warrant the earnings You expect to receive?

Leadership is not about awards and recognition.
Leadership is a willingness to get one’s hands dirty
and bloodied while blazing a trail to make the
followers’ journey easier.

In other words, a Leader SERVES the Followers. Service
is the engine of success and leadership.

The 98% who fail do so because their driving motivation
is Fear.

The 2% who succeed thrive and endure due to a
Love-driven desire to SERVE.

Your Friend and Servant,

Ken Klemm

P.S. “Be a Mentor with a Servant’s HEART.”
~ Michael Dlouhy

Inspired by Chapter 7 – Organized Planning
of Think and Grow Rich by Napoleon Hill

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