It has been rightly said that the one of biggest reason for failure small businesses is (deteriorating) Cashflow. This is especially true in times like now when there is a slowdown that is imminent / happening. If billings take time to convert into cash, then it can lead to a difficult predicament — expenses continue to happen on schedule, and incoming cash slows down (even though sales numbers may hit their targets). So, keep a watch out for collections in the business, and monitor aging reports of debtors (especially those over 60 days) closely.
A couple articles to read on this topic from More than Business and Small Biz 101.
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