Cash flow is a vital component of keeping your business operating. And when times are good, you may have no problem maintaining a positive cash flow — bringing in more money at any given time than you are expending. But what could cause you to have cash flow problems? Here are three times when you'll need to take extra precautions to avoid trouble. 

1. Around Seasonal Busy Periods

Many businesses have a busy time and a slower time. This might be the holiday sale season, the busy summer, or the end of a sales year. Whatever your busy season is, preparing for it can call for high expenditures to build products or buy inventory. Then, you may have a lull before all your sales actually come in.

This period before and after the high season needs careful cash flow management on both ends. Seasonal sales are a key component, and you don't want to skimp just because you don't have the means to keep things afloat until the dust settles. 

2. When Launching New Ventures

Expanding the business is a delicate operation. Even an established operation with a health financial statement can be put in a bind when they reach out for new ventures. Opening a new location? You'll need to invest heavily before you start making sales. Launching a new product? From prototype to marketing, it can cost you. Taking on new employees? Payroll can't wait until their efforts come to fruition. 

Cash flow planning should be part of your expansion plans from the very beginning. It's not enough to simply look at your books and see that there's enough value in the company to absorb changes. You'll need the actual cash for each step of the plan. 

3. When the Economy Takes a Hit

Cash flow depends on customers paying on time and in full as well as buying more. While some customers will always end up being late or not being able to pay at all, problems arise when it happens across a wide swath of your client base. And it often coincides with customers reticent to make additional investments. 

Generally, this occurs when the economy takes a turn for the worse. People may lose jobs and investments or tighten their belts in the expectation that it will happen. While downturns and recessions turn around eventually, early cash flow planning keeps you in business until this happens. 

Clearly, both inside and outside factors can cause cash flow damage to your small company. The best way to meet these — the expected and the unexpected — is to take steps now to protect your cash flow. Learn more by talking to a business cashflow protection expert today so you can craft a more financially stable tomorrow.