Entrepreneurs can take several steps to avoid the pitfalls of over borrowing:
1. Develop a Solid Business Plan: A comprehensive business plan should include detailed financial projections and a clear strategy for managing debt. 2. Seek Alternative Funding: Explore alternative funding options like equity financing, crowdfunding, or grants to reduce reliance on debt. 3. Monitor Cash Flow: Regularly monitor cash flow to ensure that the business has sufficient funds to meet its debt obligations and other expenses. 4. Limit Borrowing: Only borrow what is absolutely necessary and ensure that the repayment terms are manageable.