Business failure factors

Here are the perennial and classic factors most associated with business failure:

- Inadequate supply of capital. The business is underfunded to meet its start-up and ongoing needs.

- Lack of business education of the owners. The owners didn't realize what they were getting into or didn't know their area of business.

- The business was started more as a reaction than with a sound business strategy and plan. The lack of a business plan is core to loss of focus and direction - and the failure of the business.