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So what is a cash trap. You can search through the Internet, and find a myriad of interpretations and definitions. Most are likely to either put you to sleep or make your head spin, especially the ones in terms of investing, such as this one on Investopedia.
Real-World Cash Traps: Scenario 2. He didnt have contracts in place before he made the leap. Its one thing to have faith in your ability and belief in your marketing plan. But without guaranteed cash flow, theres little chance that your business will succeed. Printer B did not have ironclad contracts before he made the leap, and as a result, his cash flow will suffer.
He didnt consider using his current business as a springboard.
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