4 Business Situations To Avoid At All Costs

When it comes to specific business situations, there are undoubtedly many of them that you would prefer to avoid at all costs. Business in itself is a risk. What you want to make sure that you don’t do is make the risk worse than it has to be by engaging in different kinds of behaviors that put your efforts further into a negative connotation.

So what are some of the business situations that you want to make sure that you stay away from? Ideally, your business will never have to deal with bankruptcy. Hopefully, no one your company will ever do any whistleblowing on your illegal activities. You should do everything possible to ensure that you don’t create a toxic workplace for your employees. And, you should avoid an inability to scale if your amount of orders goes up or down rapidly.


First up on your list of things to avoid as a business owner or manager is bankruptcy. If you have to file bankruptcy for your business, it’s not necessarily the end of the world, but it certainly isn’t a positive mark to have on your track record. Once you have filed for bankruptcy, there are lots of legal obligations that you have to follow through with, and starting your business anew may require extra effort on your part and additional rest on the part of your investors.


If you keep all of your business activities above ground, then you should never have any problem with the criminal system or regulatory agencies. However, if you decide to cut corners at some point, one of your employees may eventually choose to try to blow the whistle on you. Particularly if something that you’re doing is harmful to the public at large, whistleblowing employees can take you down and potentially even send you to jail.

Toxic Workplaces

It is a miserable experience to try to navigate a toxic workplace. As a business owner or manager, you should be doing everything possible to ensure that all of your employees feel safe in your workspaces. There are all sorts of things that can go on in unsupervised situations that may make employees feel uncomfortable, and in fact may even be illegal. Do everything you can as upper management to try and stamp out these behaviors before they become a legal problem.

Inability To Scale

One of the worst things that can happen to a business is if it is a victim of its own success. And though that sort of a general phrase, what it essentially means is that if your business becomes partially successful and then suddenly gets a lot of demand for its services, how are you going to handle that situation? Do you have to build up your infrastructure quickly, and what is that going to cost? What happens if you only get one big order? Knowing how to scale up, or even knowing how to scale down, are essential qualities of the business that is going work. Without this ability to scale, bankruptcy or insolvency will always follow.