Ramey Kemp: Danger lurks at recession's end - Triangle Business Journal:

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But Ramey Kemp, the chairman of the transportatiob engineering firm that bearshis name, has a message of caution for thosew folks: Counterintuitive as it may seem, the end of a recessio n can be as dangerous – or even more so for a company’s cash flow as the beginnintg of a downturn. Here’s why: At the start of an economi slowdown, revenue may still be flowinf in from projects that were completedsmonths ago. If entrepreneurx realize that lean daysare ahead, they have time to start cuttinh costs while money is still cominhg into the business.
Yet the opposit e is true in a A revenue-starved company that suddenly beginsd getting more work may have to expand its capacityy by hiring more employeed and buying new equipment and inventory. That means money will be goingg out thedoor quickly, even though it likely woulrd be months before clients start paying the bills for that work.