Signs of Trouble

  • Declining revenue
  • Declining gross margins
  • Stretched accounts payable
  • Sustained losses
  • Substantial back taxes
  • Vendors require cash on delivery or cash in advance
  • High rate of customer credit or discounts taken
  • High reliance on few customers
  • Low quality acceptance rate/high rework
  • Low on-time delivery performance
  • High inventory, especially as compared to the current sales level
  • High employee turnover
  • On-site accidents or incidents
  • Demoralized management team/defections

“Mistakes are the portals of discoveries.”

– James Joyce