As mentioned previously, many small businesses are under-capitalized. When an under-capitalized business experiences rapid sales growth, a tremendous cash crunch can result. Gaining confidence, the entrepreneur begins advertising more heavily. Interest is very strong. In fact, it is overwhelming.
Business doubles overnight.
Customer service problems abound, and the business's reputation is seriously or even fatally damaged. The best suggestion I can offer to avoid this trap is to manage your growth. This may actually mean turning down business at times. Many small business owners go into business solely on the strength of their respective creative talents or technical expertise. This works fine at first, because the numbers are pretty simple.