There are many reasons business fail such as lack of money, changes in the economy, ineffective management, employee turnover, theft, or illness. But the main reason business fail is ineffective management, whether it be poor planing or not understanding all that is required to operate a successful business. Moreover, competition can be either direct or indirect. The intensity of that competition, whether direct or indirect, will effect the overall potential for success of your business. That is why it's important to consider all types of competition when planing your business, to ensure that you have the edge over others in your industry. Usually, the business start on shoestring budget. Financial institutions often resist lending money much money to a start up entrepreneur because since their still do not have the track record to back their business assumptions. When initial funds of the business run out, it will be nearly impossible for the entrepreneur to generate more funds to keep their business going.