These reasons are based on multiple pieces of research.
1/ Your business runs out of cash.
This comes up as the number 1 cause of business failure across different studies.
So, always ensure cash flow is good, and there is money in the bank.
2/ The market doesn’t need what you make.
This comes from believing you’ll build, and they will come.
If the market does not value what you make, you won’t be able to sell.
It is as simple as that.
That’s why it is wise to talk to 50-100 potential customers to understand what they want.
3/ You don’t know the customer’s language and how to communicate the value of what you make to them.
3/ Not getting the pricing right.
Selling too high or too low, both are not good.
4/ Low profit margins.
This is a function of pricing so avoid pricing low when you can.
To increase chances of success, stay clear of products and services that are seen as commodities unless you are a big brand with proven expertise in growing a business selling a commodity.
5/ Not being able to hire and build a team.
And, building everything around the founder.
6/ Poor quality of service or products and poor user experience.
7/ You lose interest.
So choose a space and offer where you can invest 5-10 years.
Because it takes at least this long to find and compound success.
Happy business building.