Business Insight 16 – Overtrading (blog & vlog)

Rodney Tate had been relatively successful with his record shop – indeed he had opened another in Hastings. However, stretching himself and the business resources over the two premises was deemed to be ‘overtrading’ (a term which neither of us understood but which was to become a regular feature of business life).

He had also bought a house for the first time and had stretched himself a bit too far. He was going to have to retrench back to one showroom, his solution being to transfer all that remained of his diminished stock into one shop and to trade through his difficulties – choosing the cheaper Hastings showroom and selling the lease of the Eastbourne premises.

INSIGHT 16:- Overtrading. I actually thought it sounded like a good thing to do – how can you ‘overtrade’? Surely you would want all of the business you could lay your hands on!

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