Troubleshooting;

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It's all well and good to develop friendly relationships with your customers and suppliers, but don't shut your eyes to signs of trouble. Some are fairly obvious, notes Douglas A. Phillips, a bankruptcy expert with the accounting firm of Weber, Lipshie & Co., in New York City -- signals such as the departure of key employees, or inexplicable delays in shipments. Other warnings may be more subtle. In particular, Phillips suggests that you watch for:

* frequent changes in accountants or lawyers ("If it happens a lot, chances are it's more than a dispute over fees")

* unexpected sales of assets ("If the reason doesn't make sense, you should be asking questions")

* a shift in financing, say, from using a bank line of credit to factoring of receivables ("It may not mean anything. Then again, it may be the smoke that leads you to the fire").

Of course, you can best determine how far to go with suppliers and customers by examining their latest financial statements, as certified by an accountant. You should ask for them. "If you think something's funny and the company doesn't want to provide adequate information," says Phillips, "then you should think twice about the terms you're offering."