Which Unlikely Events Can Cause a Business to Fail?

Business to Fail

It is well known, hard truth that up to 90% of startups ultimately fail, often as a result of poor business management and inexperience. However, sometimes businesses can fail as a result of plain bad luck, which is a risk that all entrepreneurs and seasoned business owners must accept.

Some events can be impossible to predict, and yet they can be catastrophic to a businessís chance of survival if they cause significant damage to the premises in which the business operates, or business operations. Here are some of the unlikely reasons that a business could collapse.


Given that there are so many strict fire safety and prevention regulations in place in the modern day, fires are increasingly uncommon in businesses, but that is not to say that they do not happen.

Most businesses are insured against this unlikely eventuality, but those which do not have the necessary insurance and then suffer a fire may not be able to recover, especially considering how much damage it can inflict in a short space of time. Even those with insurance may not receive a payout if there is any indication that the business had poor fire prevention measures in place.

Power Outages

It may not seem like a big threat, but a power outage can actually wreak havoc to those businesses which rely on the likes of computers and electronic devices. In a matter of seconds, vast amounts of crucial work and data can be wiped out, which could be devastating to small businesses in particular.

If it causes lasting damage to the businessís assets, then the business may well struggle to recoup the financial losses it incurs as a result. This is perhaps why many larger companies invest in Back-UPS to protect against such an eventuality.

Angry Customers

Often, dissatisfied customers are just a normal part of business proceedings, but they can also pose a significant threat to a businessís existence. This is because the emergence of online reviews has greatly empowered customers to speak their mind about products and services they invest in.

Now, many potential customers check these reviews to see if a business will meet their expectations. A significant build-up of negative reviews could well bleed a business dry of custom, ultimately leading to its eventual collapse.

The majority of businesses manage to navigate these unlikely eventualities with effective measures and procedures. This does not, however, mean that they should be taken lightly.

Image Credits: Business Fail from Syda Productions/Shutterstock