Sometimes, we do not immediately recognize financial difficulties, or we refuse to recognize them. Some signs that point to your business’ future finances are:

• Losing one or more important clients
• A marked diminishing of business volume
• Aggressive competitors
• A decrease in the general market
• Important increases in production costs
• High rate fixed taxes
• Lack of cash flow
• Major technology problems
• Buying out a overly high priced competitor
• Important business threats: environmental problems, law suits, client or financer bankruptcy
• Frequent absences or loss of key employees
• Elevated debt to income ratio
• Outdated financial information.

It is important to act as soon as you recognize an early warning sign of financial difficulty. By consulting a trustee, you are finding out if these things need to be looked at more closely.