As a business owner and a business law/bankruptcy attorney (among other practice areas), I’ve noticed a steady stream of businesses, many around five years old, that once had strong revenues (over $1M) but have rapidly had their revenues decline to the point they are insolvent.

My clients often cite common reasons like the economy, COVID, and competition. But I’m curious – are there other factors that might be overlooked, less obvious, or difficult for business owners to recognize before it’s too late?

Looking for insight from those who’ve experienced or studied these types of business failures. This can also help me to better advise my business clients.

Edit: I would like to add that a common problem I see with failing businesses I see are large SBA Loans and MCA (Merchant Cash Advances). To a lesser degree, several business credit cards.