Do you own a seasonal business? Many owners indicate that they run into cash flow issues during off-season, with many playing catch-up during their peak. What is the solution?
Conquer cash flow issues with these tips for seasonal businesses:
Try to set money aside during peak season to cover basic expenses and expenditures when you are not working or open. Don’t forget about your own salary, too.
Encourage Speedy Payment
If your clients don’t pay you promptly, it can be catastrophic for a small business depending on that money. Encourage customers to pay-up with incentives, discounts, and gentle reminders when they are late in paying. Also, make it easier for your patrons to pay their bills with a user-friendly website offering multiple payment options.
Curb your Costs
Cutting corners and curbing costs year-round can help cover times when your business is closed or off-peak. Think about adding part-time help to your workforce and try to negotiate with vendors over supply prices. Need new equipment? Consider renting or second-hand, instead. If you really want to save and set aside for leaner times, look for ways and areas to trim the fat and save money now.
Build a Loyal Audience
It will pay to build a loyal consumer audience; after all, they are providing you with much-needed revenues. Take care of them, as always, but also try to consider other ways to generate income, such as diversifying what you offer. Upsell your new services or goods to your existing customers; or, reward them for referrals. They may open up an entirely new customer base that can help make the money you need to get by year-round.
Use these tips to resolve common money issues faced by seasonal businesses. Learn more about conquering your year-round cash flow by talking with the industry professionals at Capital Crown Investments.