Life is hard, business is harder. You have to be ready for anything when you get into this game. Everybody seems to be afraid of brain eating zombies, but no one is afraid of bankers, lawyers, and accountants. These are people that will consume your soul if you let them.
The first thing you have to do is arrange a recovery fund for your business and never exceed it. What do I mean? Well, when you take jobs you have to take into account the worst case situation. Meaning that you are going to get paid late, or not at all. Most of the time this is just paranoia, but being paranoid in business can be a good thing sometimes.
You have to have money set aside to handle bad situations. My advice is a 25% backup. That means if your business is making $10,000 a month you need to have $2,500 set aside. That way if someone screws you, everything is still under control.
Just be careful not to overreach it. If your business is making $200,000 don’t think you’re covering yourself with $10,000. Think of your recovery fund as a line of credit your giving yourself. What would a line of credit that’s 5% of your monthly income do? Start saving up and allow yourself to grow confidently.