Using deposits from future jobs to pay prior debts - This "robbing Peter to pay Paul" is a short-term band-aid solution used by many businesses to even out their cash flow needs.  Since Peter and Paul don't get along, us this tactic as a long term financing tool may lead to disaster.

Using tax dollars for other business purposes - The IRS is extremely vicious if businesses use dollars earmarked for payroll taxes (Social Security and Medicare, Trust Fund Taxes) for other business purposes.  Despite a "kinder and gentler" pledge the IRS "padlocks" the majority of businesses because the owners used trust fund taxes, not income taxes.

Running your business based on your checkbook balance - If you do, you have no idea if you are profitable, nor can you manage financial problems effectively.

Failure to have current and accurate financial statements - Financial statements provide the "pulse" of the business.  Before you flat-line, install the accountability needed to manage profits and improvements.

Weak collection policies - No business owner enjoys making collection calls, and many avoid them.  If you offer credit terms to your customers, you must be vigilant of the terms.  Being aggressive in your collections will not alienate your customer base, if done properly, and might identify problem customers before they abuse your business further.

No Planning - Managing your business without clear business, marketing, and cash-flow plans.  Many businesses get in trouble by failing to understand the interlocking consequences of their management decisions.

Poor Communications with Creditors - Many entrepreneurs who are behind in their payments tend to stick their heads in the ground, rather than try to negotiate with their creditors.  Pro-active communication with your creditors may give you enough time to turn your situation around.

Rapid Growth - It is difficult for some to understand that you can be profitable and growing, yet still go out of business.  From a cash-flow perspective, it may make sense for you to choose a slower path, rather than risk running out of cash.