Entrepreneurs can adopt several strategies to avoid over leveraging:
1. Conservative Borrowing: Borrow only what is necessary and avoid taking on debt for non-essential expenses. 2. Diversify Financing Sources: Instead of relying solely on debt, consider equity financing, venture capital, or angel investors. 3. Robust Financial Planning: Conduct thorough financial planning and forecasting to ensure the business can meet its debt obligations. 4. Build a Cash Reserve: Maintain a cash reserve to cushion against unforeseen financial difficulties.