There are 4 tips for managing cash flow in a business that is seasonal. One of these tips is knowing your peak season. If you have a business that is seasonal, then the first step to creating an accurate cash flow forecast is to identify your busy and slow seasons. It is very important and crucial to be realistic with your forecasts. Another tip you may want to use is considering a business line of credit.
- Based on a study completed by Wells Fargo,41% of small business owners report that seasonal differences in revenue makes it more difficult to manage cash flow throughout the rest of the year.
- There are many types of strategies that business’ can use to track finances each month. A cash flow forecast can aid in monitoring the input and output of cash which will help with future forecast.
- There are four suggested steps to stay on top of your business during slow season. 1. know your peak season. 2.Budget. 3. credit 4. plan
“In fact, according to a recent Wells Fargo/Gallup survey, almost half of small business owners reported having predictable times of the year that are significantly busier or slower than others.”
Read more: https://www.entrepreneur.com/article/303368