Many businesses are seasonal: freight peaks before the holidays, property work follows the weather, tax help crowds into spring. The bills, however, arrive every month.
Know your pattern
Look at the last twelve to twenty-four months of income by month. Most seasonal businesses have two or three slow months they can see coming.
Build a reserve
Decide how many months of fixed costs you want covered, then set aside a share of every busy-month dollar until you reach it. Our cash reserve calculator works out the target and the monthly amount.
Smooth what you can
- Offer retainers or service plans that bill evenly through the year.
- Do maintenance, marketing and planning in the slow months.
- Collect invoices fast in the busy months, when cash matters most later.
Talk to your bank early
A line of credit is easiest to set up when business is strong, not when the slow season has already arrived.
General information, not financial advice.
This article is general information, not legal, tax or regulatory advice. Rules change; confirm current requirements with the responsible agency or a licensed professional.
