Whether your business is growing or going through a downturn, one of the potential hurdles to look out for is a cash shortage. Running out of cash can prevent you from taking advantage of growth opportunities and, if it prevents you from meeting payroll, it can cause catastrophic damage to the morale of your team. Making sure you have a consistently updated cash flow forecast can help you avoid shortages and plan ahead. You should know well in advance that you are going to have a cash crunch, and you can take many steps to avoid it.