IMHO it happens 90% of the time for the same 2 combined reasons.
1-The business owner is a poor accountant AND 2- The business owner lacks humility to admit to mistakes.
Ive seen some HUGE, (10 figure worth huge) construction companies fail and when you dig into them its those two reasons. Things go sideway and people think they are the smartest guy on the planet and can shuffle around and hide the mistake Dumb guys go broke the first or second time they try. Smart guys get by with it a bunch. Then the mistake gets too big to fix.
The 10% I reserve above is consumed by drug problems draining cash flow, side hos families draining cash flow, major medical event that was uninsured, and a (very) few poor calculated business risks.
