The 8 signs a business is heading into a crisis
Answer honestly. At the end, you'll get an instant diagnosis — green, yellow, or red — of your business's real condition.
1. Cash is always tight, even when sales seem good.
When money comes in and goes out without anything left over, it's a sign the business is financing its own losses.
2. You pay bills late, delay suppliers, or rely on overdraft/credit lines.
Chronic delays are the first technical warning sign of a financial crisis.
3. You don't currently know the real profit from last month.
Without a closed and reviewed income statement, you're flying without instruments.
4. Revenue is rising, but profit isn't keeping up.
Growth without margin is a trap: you get bigger, more complex — and more fragile.
5. Taxes, payroll contributions, or installment plans keep getting pushed back.
Accumulated tax liabilities are the silent cancer of small and midsize businesses.
6. One or two clients account for more than 40% of your revenue.
Revenue concentration means losing a single client could break the business.
7. Partners withdraw salary or dividends without discipline — even in bad months.
When the business gets confused with the owner's pocket, cash never recovers.
8. Important decisions are made 'by gut feeling,' without numbers on the table.
Without indicators, every decision becomes a bet — and bets are costly.