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How to Survive a Seasonal Cash Flow Crunch

Posted by in Small Businesses

If you’re running a seasonal business, you may struggle in the off-season — especially when it comes to cash flow. Sales diminish, but basic operating expenses don’t.


Follow these tips for help getting through the quiet period:

1. Plan and budget wisely

In our last blog post, we discussed the importance of business forecasting. Cash flow forecasting is particularly important for seasonal businesses. Compare operating costs to your sales forecast to predict future funding needs and create backup plans.

2. Scale back on unnecessary expenditures

For most seasonal companies, it makes sense to cut back on non-essential costs — like marketing and advertising — during the off-season. Your remaining expenses should be very predictable, making them easier to manage.

3. Extend your season

Is there more you could be doing in the off-peak months? Landscaping companies, for example, may want to consider offering snow removal services in the winter. Doing so will bring in extra revenue, keep employees busy and may even solve off-season cash flow problems.

Need funding for your company? RMP Capital can help! Get started here, and we will contact you shortly to help you through the process. You can also get in touch by calling 631.738.0047.

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