And according to a recent survey, the biggest potential trouble spot for entrepreneurial businesses is when they're experiencing rapid growth.
Larry Dondon, managing director of Entrepreneur's Re$ource Group, warns entrepreneurs to avoid these common financial mistakes:
- Failing to borrow funds
- Overlooking available financial resources
- Underestimating financial risks
- Ignoring the downside of investors
- Overestimating your borrowing potential
- Neglecting to manage lender relationships
- Preparing a loan application under pressure
- Failing to forecast cash needs
By paying attention before you hit the danger zone, you're more likely to avoid trouble altogether.