Some business owners are like ostriches. They bury their heads in the sand. I have talked with owners who owed millions in debt, were 120 days late on their accounts payable, and couldn’t price and order correctly – and they still looked at me like I was crazy when I said they should sell and get out.

What was I talking about? They had no problem. Hell, the company had lived on this precarious edge for years. This time was no different from any of the other bad spells. It would all be over soon. After all, they had always recovered before.

If you own a business, ask yourself these questions:

• Do I have enough money in the bank to pay one month’s worth of bills?
• Are my sales going up or down?
• How are my margins?
• Is my bank considering pulling my line of credit?

If you don’t own a business – and we all do, really, because we are all a “business” of a sort – then check your bank balance against your credit card debt. Are you living over your head?

The most successful businesses recognize when they have a problem and do something about it, quickly. Whether it’s to a new strategy or to a completely new venture, they move on.

[Ed. Note: The best way to keep your head above water? Start your new business on the side, while keeping your day job. Begin your own business for under $100 right here.

Author and businessman John L. Herman Jr. ("Herman"), who has owned more than 20 companies, has become an expert on why businesses fail. The above article was excerpted with permission from Hermanisms: Axioms for Business and Life. For more information about Herman and his business writing, please visit Hermanisms.com.]

There is only one number one, only one best at anything. Thankfully, we live in an environment where even the tenth-best or the hundredth-best business may make some money. But why not try to learn something from the leaders?

Set aside your ego. Recognize that someone may be better than you are at what you do. Admit it – and then set your sights on becoming even better.

Who else makes what you do, sells what you do, or provides the same service you do – and is more successful at it? If you don’t try to understand what they are doing better, you don’t really want to win.

You see, another business fact is that sometimes number one slips and becomes number two or number three. Find a competitor that is more successful than you. Identify what they do better, combine that with your strengths, and then work harder or smarter. And maybe, just maybe, you’ll be number one someday.

[Ed. Note: Author and businessman John L. Herman Jr. ("Herman"), who has owned more than 20 companies, has become an expert on why businesses fail. The above article was excerpted with permission from Hermanisms: Axioms for Business and Life. For more information about Herman and his business writing, please visit Hermanisms.com.]