Last Updated: Aug 27, 2018
One issue that many business owners fall victim to at some point is cash flow problems. Seasonal business owners need to be even more vigilant when it comes to managing cash. Get a handle on the financial outlook for your company with these 23 tips.
The ups and downs of running a small business are exciting and sometimes worrisome, but when that small business is a seasonal business, cash flow issues can make the roller coaster ride frightening – or even deadly.
The problem – business and income bottoming out in the off-season- isn’t easy to fix. But there are ways to mitigate the effects. Here’s how to do it.
Fix This Mistake If You’re Making It
According to Calvin Harris Jr., CPA, President of Change Management at Harvin Consulting, a boutique consulting firm that provides “On Call” CFO and Project Management services, “The biggest mistake business owners make when it comes to cash flow really is very simple…they don’t manage it. They don’t predict out into the future. Organizations—no matter if they’re very large or very small—the ones that have the best control over their cash are the ones that are able to succeed.”
The reasons small businesses don’t manage their cash flow vary. Some, simply don’t understand cash flow. It’s not unusual for business owners to think if they’re making a lot of sales they must have positive cash flow. Profits and cash flow are not the same thing. You can have a profitable business on paper and not have a dollar in the bank.
Some business owners claim they don’t have the time to manage cash flow and others are scared of what they may find.
Compounding the problem, many small business owners lack a general understanding of accounting principles. That makes it tough to get a handle on your company’s financial health in some cases.
The good news? You can conquer your cash flow issues.
Here are 23 things you can do that will help you deal with the ups and downs of a seasonal business:
Set up an online store so tourists or seasonal shoppers who visit your shop can make purchases after they return home. Be sure to hand out business cards and flyers with the website for the online store.
Create a mailing list to remarket to tourists after they go home. Point them to your online store and bring in cash by featuring items that would make good gifts, or by putting overstocked inventory items on sale.
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Lack of cash can kill your business. But with a little work, you can take control of your business’ finances. Don’t procrastinate; do it today.
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Anthony Sills is a direct-response copywriter and content strategist on a mission to eliminate boring marketing. He’s written copy for eBay, SEMrush, IBM, American Express, InfusionSoft and many exciting startups. You can always reach Anthony via social media or email.