For some people and small business, Bankruptcy is an easy way the get rid of debts. But in fact, it’s a lot more than just about the debt. Bankruptcy is serious, even though it is relatively easy to pull off, and even though it may feel painless at the time it is happening.

In this week’s Inc.com Magazine, there was an article on WeWork, a company that once had an IPO in the billions that has fallen spectacularly and is expected to file Chapter 11 Bankruptcy soon. According to the author of the article WeWork on the Brink, “The company is expected to file for Chapter 11, according to reports. The news marks a spectacular reversal for the company, once valued at $47 billion.”

What could have caused this “spectacular reversal”? According to the author, “the problem with WeWork was it over-expanded, borrowed too much money, took on too many sites too quickly, [and] didn’t really put in place all the checks and balances and controls that a company needs to have.” (You can find the article at this link)

The author’s observations inspired this post. It got us to thinking about small businesses and how they can avoid a fate similar to WeWork. Granted that WeWork is not a small business, but there are lessons to be learned from that situation, nevertheless. Here are 10 things small businesses need to be mindful of:

1. Expand gradually

Gradual expansion seems to be surer than rapid expansion, as a general rule. WeWork seems to be a textbook example of that. Their meteoric rise was bankrolled by SoftBank according to the article and they set about dipping their hands into a lot of things all at once. Before long, their meteoric rise was met with a spectacular fall.  Small businesses can learn from this. The temptation to want to scale as quickly as possible is perfectly normal and well-understood. But it is not necessarily the smartest way to go. Sometimes it is better to grow and expand more gradually.

2. Don’t borrow too much Money

Small businesses and startups typically need money to get the business off the ground. This is normal. The problem is one of proportion. For some small business owners, the fact that they get access to a source of cash causes their brains to go into overdrive. They borrow the maximum, being overly optimistic that they will be able to pay it all back. Optimism is a good thing for a small business owner, but too much of it can lead to foolhardiness. And that ultimately deposits the small business owner into the bankruptcy court. The lesson here is for the small business owner to borrow as little as possible if he or she wants to avoid Chapter 11 Bankruptcy down the line.

3. Don’t promise more than you can deliver or bite off more than you can chew

This is a key issue with certain small business owners: they sometimes bite off more than they can chew. And they promise more than they can deliver.  Resist the urge to do that, even though it is tempting. When you take on more than you can handle, you open yourself and your business to failure, and this leads inexorably to Chapter 11 bankruptcy when clients lose confidence in your abilities, and take their business someplace else.

4. Put checks and balances and controls in place from the get go

Small business owners need to put checks, balances and controls in place to make sure that their companies are running the way they think the companies are running. Designate authority, sure. But all employees, no matter their role, must be monitored to some extent. As the owner of the company, it is imperative that the small business owner knows what is going on in their own company. No one should have free reign in the company, no matter how trustworthy they seem to be. The worst thing a small business owner can allow to happen, is to be caught by surprise by a rogue employee or customer. Institute checks, balances and controls on everyone, and never take your eye off the ball or your foot off the gas.

5. Don’t go public too soon. Say “no” to IPO.

When small businesses expand to the point that they can do an IPO (initial public offering), this is a very exciting thing for most. But it can be a mistake if you are not ready, because by definition, an IPO takes your business public, and it means that the owner of the company will lose a lot of control of the company. Then, if there is internal turmoil because of this sea change that hits the news, this can lead to stocks being sold off by stockholders, and the stock price falling, and then, the company literally imploding. Small business owners need to be mindful about not going public before they are ready, no matter how enticing this might be.

6. Control internal turmoils in the company (and don’t party too hard too soon)

Speaking of internal turmoils, small business owners should avoid encouraging a “party” atmosphere and reputation in their company. When employees become used to this climate of partying all the time at work, or for work, it can lower their commitment to best practices. They can cut corners, neglect tasks and race through decision-making just to make it to the next company-sponsored fete. This can lead to trouble for the company because the work is not getting done properly. When work is not getting done properly, the bottom line for the business will quickly be imperiled.

7. Maintain a tight budget

Maintaining a tight budget is an important task for the small business owner. Indeed, it could be the most important task, because it is cash flow and financial stresses that lead small and large businesses to the bankruptcy court. As tempting as it might be to go over budget, small business owners must discipline themselves to stay within their budget.

8. Don’t spoil your employees with perks you cannot afford

Small business owners want to hang on to their best employees and this is understandable. But sometimes, this leads to bad decision-making because the small business owner might try to spoil their employees with perks that the small business owner cannot afford. Sure, it is important to offer perks and remain competitive in their field, but small business owners also have to consider their budgetary constraints when offering perks to their employees.

9. Bring on a Partner

Bringing on a partner is a strategy available to most small business owners, but many are hesitant to go that route. They want the whole pie for themselves and are loathe to share the spoils with someone else. Sometimes, though, it is smarter to have 50 percent of something, rather than 100 percent of nothing. Small business owners should not be closed-minded about this issue, if, by bringing on a partner, they can save their company from bankruptcy.

• Speak to your creditors to see if you can consolidate your debts before it is too late.

There is no indication whether WeWork had tried to consolidate debts or negotiate with their creditors. But in the case of small business owners, one way to stave off filing for Chapter 11 bankruptcy is to work with their creditors to resolve outstanding debts issues before it reaches to point of litigation.