MINIMISE YOUR RISK

on't be too eager to take work, be calm, and check out who you will be dealing with before committing yourself to anything.

n Aim to work for companies which you know and trust. An established working history will bring a valuable insight into the company and you will probably hear rumours about how their business is trading.

n Contact Companies House to investigate the trading state of the company. Are its accounts up to date, and if not - ask the company why.

n Ask the company directly if you can see their most recent acconts. Any sign of reluctance could signal problems on the horizon.

n Does the company have heavy borrowings and is this a problem? If total borrowings exceed the shareholders' funds less the goodwill then the lending institutions who are likely to be in control of the company will obviously put their own interests first.

n Has the company made losses for more than one or two years in a row. It could signal serious problems ahead.

n Negative share capital and reserves on the balance sheet could indicate financial instablility.

n Check to make sure that current liabilities do not exceed current assets.