14. Inefficient debt management
As businesses expand, they may incur debts. Mishandling these obligations can jeopardize financial health.
For example, if a growing online retailer takes on excessive debt for inventory but faces sluggish sales, this can strain liquidity. If a hotel chain doesn’t effectively manage its expansion debts, it leads to selling prime properties.
Poor debt management can strain cash flow, impede growth, and affect creditworthiness.
Risks: Insolvency protection, credit score impact, and unfavorable financial terms in future deals.
Three tips to avoid this mistake:
Maintain a balanced debt-to-equity ratio.
Regularly review and strategize repayment plans.
Prioritize high-interest debts to reduce financial burden.
Key insight:
Smart handling of debt supports steady growth and keeps finances stable.
15. Neglecting exit strategy planning
Every growing business, at some point, will face transitions. Without a clear exit lebanon rcs data or succession plan, transitions can be messy.
If the founders of a popular gaming app lack a clear exit strategy, this can lead to disagreements and a hurried, undervalued sale. A family-run manufacturing firm that hasn’t established a succession plan can cause inter-generational disputes and operational disruptions.
Why this is important
Ambiguous exit strategies can lead to disputes, loss of business value, and missed opportunities.
Risks: Leadership vacuum, reduced sale value, and internal conflicts.
Why this is important
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