(a) A bad idea to begin with

9 While having faith in the initial business concept is an important attribute of any entrepreneur, it’s often not enough. It is sometimes the case that the unique business idea is not so unique after all, and that the market is already well served or there is less demand than was originally thought.
(b)
Poor Planning
The initial business plan is a blueprint for success. Failing to stick to the plan, failing to put in the kind of intense research needed to begin with or, more commonly, failing to seek out and heed professional advice are common ways in which a business can get off to a bad start. Planning ahead is vital at every stage of the business and the relationship between planning and control should be continuous. Managers make plans and control is used to evaluate the effectiveness of organisational activities relative to the plan put in place. The current plan should be maintained, but, if adequate progress is not made as indicated in the control system, there maybe the need to review the course of activities in the plan.
(c)
Lack of Capital
Under-capitalization is a common reason why businesses face serious threats in the first few years of operation. Adequate capitalization must take into account the setup capital and business sustainability. Buying an existing business can mean that you can bypass many of the initial hurdles such as establishing business premises, buying equipment and machinery and, of course, finding your first set of customers. While buying an existing business is no guarantee of success, it can give you an advantage during those crucial setup months and can be a more cost-effective solution. Subsequently, the business organisation should embark on measures that can improve sales volume, boost revenue and consequent profitability.
(d)
Not knowing the market
Knowing who your customers are and what they actually want, rather than what you believe they want, is one of the keys to business survival. Failure to keep in touch with customers through implementation of a practical marketing plan, and failing to keep up with changing wants and needs can contribute to business failure.

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