Business Signals
to watch.
               Danger Signals to look for and monitor in a small business

​    =>  Accounts payable or receivable over 
          90 days old.

    =>  Decreasing profit or contribution margins.

    =>  Reduction in working capital, or not being 
          able to pay down credit line once a year 
          to zero.

    => Using short-term capital for long term 

    => Decreasing employee communications 
         and morale.

    => Instant cash shortages.

    => Broken chains of command, unclear 
         lines of authority.

    => A high break even point, or increasing fixed costs.

    => Lack of internal cost controls.

    => Information flow deficiencies between departments 
         and management.

    => Increasing bad debts and bank overdrafts.

    => Payroll liabilities increasing.

    => Stagnant or flat, or consistently declining sales.

    => Several continuous periods of losses.

    => Constant difficulty in meeting payroll.

    =>  Increased customer complaints.

    => Owners extending credit to the firm.

    => Not knowing or tracking your key financial ratios.

    => Cost overruns increasing in frequency.

    => Increasing management overhead and/or disputes.

    => Increasing employee turnover, absenteeism, or idle time.

    => Slow inventory returns.

    => Lack of management planning, management by exception.

    => Lack of a marketing program, marketing wrong products in the
         wrong markets.