Build-up to a business entering into an insolvency procedure…..
As with anything in life nobody truly wants to fail, otherwise why start out in the first place. You would have to be extremely naive to believe that there was not an element of risk when starting out in any business, even if you did have the best business plan since sliced bread.
A business may be facing an insolvency procedure for a wide variety of reasons, some may have been in the control of the board and some may be beyond the control of the company and its directors.
Usually, it is not one catastrophic event that causes the failure of a business, although this does occur from time to time (i.e. major customer goes bust), but a multitude of events that tip the business over the edge (i.e. economic downturn, increase in costs, increased level of competition reducing margins, currency fluctuations, bad debts etc..).