Managing Your Busy Season Well Can Set Up Your Slow Season for Success
Summer is the time when people get up, go outside, travel, and walk along main street. So it’s not too surprising that many small businesses see a surge in traffic during the summer months. Many small businesses experience seasonality and it makes sense to carefully manage your finances during the lean months, but it’s just as important to be on top of your expenses and prepare for your lean months during when business is booming and cash flow is strong.
Below is a quick overview of Ty Kiisel’s five tips to optimize your finances throughout the year. With his over 30 years of experience running and helping small businesses, he’s seen it all.
It’s not uncommon for revenue to ebb and flow for a small business. As an experienced business owner, you can recognize when to expect highs and lows, but it may be harder for newer businesses. Either way, you can never predict it 100%. There is always a level of risk involved. Anticipating and learning to recognize those cycles is key.
Keeping to a budget in business is just as difficult, perhaps more stressful, as keeping to a budget in your personal life. We always want more. It’s tempting during your cash flow heavy months to spend more, but if your budget takes into account your expenses for your slower months, it’ll be easier to keep on track year after year.
Often seasonal business owners will look for related products or services to offer in the slow seasons. Using the strategy creates a stronger connection with existing customers as well as brings in additional revenue.
It’s known in business that the best customers come from existing customers. It’s easy to recognize your customers who give you a lot of referrals. It may be as simple as sending a thank you note, or you could send a gift or a coupon, depending on the nature of your business. Showing appreciation for referrals can only lead to one thing: more referrals!
Consider a Business Line of Credit
I don’t want to say that every business problem can be solved by adding capital to the equation, but access to a business line of credit can ease the stress of your slow months. The flexibility to borrow money when you need it allows you to take advantage of opportunities that arise quickly in the off season that could generate more revenue in the busy months.