82 percent.

That is the percentage of small businesses that fail within the first few years. More than eight out of ten entrepreneurs who start a business will watch it close.

The reasons vary. Some businesses fail because of bad products. Some fail because of poor marketing. Some fail because the timing was wrong.

But when researchers study business failures, one factor shows up again and again. Cash flow problems. Running out of money. Inability to access capital when it matters.

And here is the part that should make every St. Petersburg business owner pay attention.

Most cash flow problems are connected to how the business was funded in the first place.

Think about it. A business owner starts a company. They need capital. They do not know about business credit, so they use personal credit cards. They take out personal loans. They sign personal guarantees.

The business grows. But so does the debt. And because the debt is tied to the owner personally, there is no escape valve. Every payment the business misses hits the owner’s personal credit. Every struggle the business faces threatens the owner’s personal finances.

When things get tough, these owners cannot pivot. They cannot wait out a slow season. They cannot invest in the changes that might save the business. Because they are personally on the hook for every dollar, and their personal finances cannot take the hit.

This is the 82 percent problem. Businesses fail because owners do not have access to capital that protects them personally.

But it does not have to be this way.

The businesses that survive and thrive usually have one thing in common. They figured out how to access capital through their business identity, not their personal identity. They built business credit. They separated their company finances from their family finances.

When hard times hit these businesses, the owners have options. They can make strategic decisions without worrying about losing their house. They can wait out slow periods without destroying their personal credit. They can invest in recovery because the investment comes from business resources, not personal ones.

This is the difference between the 82 percent and the 18 percent.

Your EIN gives you the power to build business credit. To access funding that does not require personal guarantees. To create a financial firewall between your company and your family.

But most business owners never learn how to use this power. They keep funding their businesses the personal credit way, and they keep ending up in the 82 percent.

On January 22, SpaceLab St. Pete is hosting The 2.1 Trillion Question workshop. This event is for St. Petersburg business owners who want to beat the odds. Who want to understand how business credit works. Who want to build something that survives.

The 82 percent problem is real. But so is the solution.

Details at https://spacelabstpete.com/about