Early Detection & Prevention

Business Early Warning System

Detect financial and operational problems before they become critical. Our comprehensive early warning system helps you identify red flags, implement monitoring systems, and take preventive action to protect your business.

6-12

Months advance warning of serious problems

Most

Of business failures could be prevented with early detection

24

Critical warning signs to monitor regularly

The 24 Critical Warning Signs

Monitor these key indicators to detect problems before they become critical. Early detection gives you time to take corrective action.

Financial Red Flags

Declining profit margins for 3+ consecutive months
Increasing reliance on overdrafts or credit
Delayed payments to key suppliers
Rising debt-to-equity ratio
Difficulty meeting payroll deadlines
HMRC payment delays or arrears

Operational Issues

Declining customer satisfaction scores
Increasing staff turnover rates
Quality control problems
Delivery delays or service issues
Inventory management problems
Technology system failures

Market Signals

Loss of major customers
Increased competition pressure
Declining market share
Pricing pressure from competitors
Regulatory changes affecting business
Economic downturn in your sector

Leadership Issues

Key management departures
Lack of strategic planning
Poor communication within teams
Resistance to necessary changes
Declining employee morale
Inadequate financial controls

How Many Warning Signs Apply to Your Business?

Take our comprehensive business risk assessment to identify potential problems before they become critical. Get personalized recommendations based on your results.

Implementing Your Monitoring System

Build a comprehensive early warning system that automatically monitors your business health and alerts you to potential problems.

1

Set Up Key Metrics

Establish baseline measurements for all critical business indicators and set up automated tracking systems.

13-week cash flow forecasting
Monthly profit & loss tracking
Customer concentration analysis
Supplier dependency monitoring
2

Create Alert Thresholds

Define specific trigger points that will alert you when metrics move outside acceptable ranges.

Cash flow below 4-week runway
Profit margin decline
High customer concentration
High staff turnover
3

Develop Action Plans

Create specific response protocols for each type of warning sign to ensure rapid, effective action.

Urgent cash flow procedures
Creditor communication scripts
Cost reduction checklists
Professional advisor contacts

Essential Monitoring Tools

Use these tools and techniques to maintain constant visibility of your business health

Cash Flow Dashboard

Real-time visibility of cash position and 13-week forecasts

KPI Tracking

Monitor key performance indicators with automated alerts

Risk Scoring

Automated risk assessment based on multiple data points

Trend Analysis

Identify patterns and predict future performance issues