The number one reason why most businesses (online or offline) dig an early grave, is because of lack of cash flow. Here's why:

The argument could be made that the mindset of a business owner is key to success. Although that maybe true, mindset doesn't bring in cash to maintain the business. What mindset does is keep the owner focused on taking consistent actions to keep cash flowing into the business.

Mindset by itself will never pump cash into a business. Only actions can. If this were not the case, there would be millions of multi-millionaires.

Therefore, if cash flow is critical to a business staying in business, what are the actions a business has to take to generate profits in the first place? The answer is sales and marketing.

Without marketing and making sales, there are no profits. When there are no profits, there's no cash flow. Without cash flow, there's no business. Profits are like the oil that keeps the machine running; when the oil runs dry and the owner of that machine doesn't maintain it, it stops working altogether.

In fact, not only will it stop running it could damage the engine that makes the machine run because of the extra tension and stress. Here are 5 reasons why marketing and sales is important to the life of any business:

Reason #1: Constant Flow Of Customers – Bankruptcy is a result of a lack of capital; not a surplus of it. And, the only way capital is raised to sustain business is to sell something of value to the end user known as customers or buyers. When there's a steady flow of buyers for products or services, a business generates cash flow - therefore driving profits.

The easiest way for struggling businesses to get customers is to attract business through marketing, and close the deal with the sale. Generally, marketing requires a budget to pay for the advertising medium although some forms of marketing are free (free press, radio interview invitation, etc).

In most cases, for businesses to get access to massive free marketing a brand needs to be established, a few favors may need to be pulled, or they have to be newsworthy benefiting the masses.

However, most small businesses shouldn't rely on free publicity and advertising to keep the doors open. Other highly effective alternatives consist of radio, magazine, internet, television, newspaper, or referrals/word of mouth.

Reason #2: Effective Marketing Allows Control Over Direction– Another key reason why marketing is important is because when people contact the owner about a product or service, the owner's in control the entire time. Who contacts who first makes a huge difference in the final result.

If a potential buyer contacts the owner, the buyer has already shown interest in what the owner has to offer. Little effort is required to close the sale and make a profit. This allows more time to focus on more potential buyers – which equals a bigger cash flow.

If, however, the owner contacts a potential buyer, the buyer's in control of the outcome of the transaction – making it harder to close the sale and leaving less time to reach more potential buyers.

Effective marketing separates those merely looking and those ready to do business. It also allows the business to set premium prices, rules, and other perks because of good marketing.

In conclusion, there are other small factors that make or break a business, but no other factor comes as close to generating a consistent profit to keep the doors open, pay employees, and make it worthwhile financially to the business owner.