Seasonal businesses run the gamut from hotels to landscaping services, but one thing they have in common is the majority of their cash flow comes during a specific time period.
While an influx of money is usually not a bad thing, it can make it challenging to plan for the rest of the year. Here’s how the owners of successful seasonal enterprises manage their finances:
1. Review your books. One way to plan is by looking at the past for some important context. If you’ve been in business for several years, review profit and loss statements to look for patterns. Trends can provide a general idea of what you might expect in the future, so you’re not going into each down season blind.
2. Get creative with promotions. Even if your business operates only a few months out of the year, that doesn’t mean you can’t test market off-season promotions. For example, if you own and operate a tax preparation service, you might consider pushing gift certificates as Christmas gifts. Top-of-mind awareness can mean great things for your business and ensure a more profitable season.
3. Streamline operations. Peak season might call for a full head count, but during the slower months you might be able to cut hours and operate lean. Just be sure to communicate your plans up front so no one feels misled. The same goes for operational expenses. Is there a way to reduce costs when you’re not bringing in revenue?
4. Get expert advice. One solid fact — you pay for what you get. Free bad advice can cost you in the end. That’s why you need a partner who has your best interest at heart. We can help you navigate everything from payroll to insurance so you can focus on doing what you do best! Give us a call today: (904) 596-2847