There are a number of reasons why a business finds itself with declining profits, negative cash flow, shrinking customer base and in a downward spiral. Some of these reasons may include external factors that you have no control over, like a large increase in competition, sudden illness, legal challenges, natural disasters or unfavorable government policies to name only a few. Take it from someone that have failed many times in business - it does not take much to be in this position.
Sometimes you have to go through the dark side of a tunnel before you can see the light on the other end. Almost every large and successful company had a near death experience before they become very successful. There is always hope.