Running a small business can be both exciting and worrisome- especially if you are running a seasonal business. Cash flow during the “off-season” can be quite scary. The truth is, it’s not easy to fix, but there are some things you can do to decrease your chances of falling victim to low or no cash flow.
Are You Making this Mistake?
Most small business owners simply don’t manage their cash flow. They don’t think about the future. The reasons vary, but usually boils down to them not understanding it. They assume cash flow is the same as profits- but it’s not. You can be profitable and not have any money in the bank.
23 Tips to Manage Your Cash Flow
Following are 23 things that you can do to help you manage your cash flow for your seasonal business.
When times are good, set some money aside into a savings account.
Set up a line of credit with your lender.
Talk to your bank/credit union about managing your cash.
Offer a variety of payment options to your customers.
Set up an online store so tourists can still shop after they go back home.
Create a mailing list to reach out to your customers periodically with sales and other marketing materials.
Offer some variety in your products/services.
Look into alternative funding options.
Match assets and liabilities.
Determine your costs: fixed and variable.
Improve your invoicing process.
Negotiate payment terms and costs with vendors.
Create a budget that works with your cash flow.
Learn to forecast your cash flow.
Examine your situation regularly.
Utilize all the resources you can.
Ask customers for deposits for special order merchandise.
If you’re not going to do it, hire someone.
Instead of purchasing your space, lease it.
Delay your creditors if possible.
Engage in strategic planning during your slow periods.
Consider shutting down during your slower periods.
Take some time to learn all you can about financial matters.
All businesses struggle with cash flow- seasonal businesses more so. These tips should help you get a handle on your finances. Contact BT84 Commercial Capital & Business Solutions to learn more about our comprehensive cash flow solutions.