If your running your own business a the minute, the last thing you want to be doing is falling into a business trap. But, they’re all there, and so many businesses don’t even make it through the first year because they aren’t aware of the problems in the business world. Everyone is always so focused on talking about the positives of business, when we definitely do need to start thinking about the negatives. The more you know about the negative side of things, the more you’re going to be able to protect your business from becoming susceptible to them. So, here are the biggest business traps we think you might fall down at some point, and how you can make sure you remove them altogether!
Property renting is probably one of the biggest traps a business can run in to. But we know that every business is going to have to rent some form of a property to make sure that they have a place for their company to run from. You can rent office space from really reputable companies, and ones that will give you a fair contract without putting in hidden clauses. But, there are some office spaces out there that are just terribly managed, which can have a knock on effect with how you run your business. Your ideal building to rent from is going to be one that’s really well maintained, highly secure, and for a good price for the location you’re going to. One of the best places to rent would be the city so that you have a central location. Plus, cities are usually thriving for the business world. Never take a lease out that lasts a couple of years as well. You want to make sure you have a short lease, because you can renew it, it just means if things did start going wrong, you wouldn’t be tied down to them for too long!
There are some financial traps that you can definitely fall in to, and one of them is borrowing far much more than you’re going to be able to pay back. It’s easy enough for a company to do though. As long as the banks will lend, your business will keep spending. Just try not to spend too much as you will bring your company down. Huge companies go into administration because of the financial traps they’ve fell in to, don’t let your company be one of them! Stay running off your own back, and you should stay in the clear!
Growth traps really are something you need to be careful of. This is when your company creates an illusion that it is ready to expand, but it actually isn’t. Sometimes you can have s spurt of income around a certain time of year, and assume your company is ready to grow. Huge financial losses can occur during down time, so it’s always worth waiting to make sure your company is ready. Always go with the flow, and never rush to expand.