Inconsistent revenue will not kill the deal
By: Katherina Gorospe
Not all companies generate consistent year-round. If your business is seasonal, you’ll learn that proper financial planning lays a little differently across the board. There are times where revenue skyrockets while it flat-lines during other times of the year. It is important to time your funding around your fluctuating invoices.
Since seasonal businesses rely heavily on their cash flow, there are several things an owner can do to maintain a steady income. The expenses that come with running a business can be extensive so try and cover those costs while you have steady cash flow. This results in fewer expenses during your offseason and prevents negative balances in your bank account. Drafting up your own profit and loss report will reap amazing benefits for your business, as well.
In order to prepare for your offseason, it’s a good idea to save some of your income to pay for half a year’s worth of costs. Keeping your payments to a minimum is key, so planning ahead will secure your account for future expenses.
As a seasonal company, you’re going to want to lower the prices of your services or discount your products. Not only will this marketing bring in more consumers, thus lengthening your cash flow, but this also gets rid of any inventory overflow.
If you find yourself still adjusting and figuring out what works for your business, short-term funding might be beneficial. This option is helpful during inconsistent sales months, can cover surprise costs. It’s also quicker option than the bank, if you find yourself on a time crunch.
Clothing and accessories follow the upcoming season by suit. Slightly discounting inventory overflow can aid in pushing sales. Busy times of the year with high revenue tend to be the back-to-school season where parents invest in a new wardrobe for their kids, as well as holiday sales.
When applying for a loan, you can use that cash to help your business adapt to its changing needs, so you stay up to date with your customers. During busy seasons, you’ll also be able to invest in more inventory. It can also open more opportunities to expand your brand, as well as your number of eager employees.
Summer is the prime time for construction companies to fix, renovate, and get projects done. However, when winter comes around and can prevent you from completing these projects. You want to be able to keep working and keep that revenue high in order to take care of your team, supplies, and other unexpected expenses.
Applying with a bank tends to be more work than its worth. Regardless if your company is on season or not, the clock is always ticking. With financing from us, you’ll be able to get the funding your business needs in order to get new supplies/equipment, expand your team, or improve your marketing.
These are just a few industries who experience seasonality. Just because your seasonal business is different, doesn’t mean you must fall victim to major financial obstacles. Whether you find yourself in retail, construction, or a different type of seasonal business, there are many financing solutions available for your company.