Businesses fail when:

They can’t make a profit.
They then run out of cash.
They fail to get extra funding for the business.
And finally, they give up.
Sorry to say that it’s pretty obvious.

A better question is: How to avoid them?

First, focus on making money. I’m not saying that you should do whatever it takes to make money even it goes against your moral compass and integrity. If you know what you’re doing is NOT right, stop doing it. But if your business is providing great values and solutions, you shouldn’t be feeling guilty to charge your customers for its worth.
Second, actively manage your cash flow. Many businesses are spending big bucks on things that don’t matter like a luxurious office at a high-end location or unnecessary consultations that bring zero value. To survive in business, trim the cost and overhead deliberately.
Lastly, never stop improving. A validated idea + effective marketing = Good business. However, things change. More than 80% of the biggest companies today did not exist ten years ago. There is a high possibility that startups fail in a short period of time even if they do everything RIGHT. The key is to keep evolving and keep improving.
You don’t have to give up your business if you do all the above.
Check below to learn how to raise start-up capital for business.