Cash Flow Solutions for the Holiday Season
The holiday season is here and business owners are looking out for one thing – record highs and devastating lows. The majority of businesses experience seasonal fluctuations throughout the year. Without the right planning and understanding of how to maintain a healthy cash flow, these seasonal imbalances can cause businesses to feel the financial impact. Having a business consultant in Ventura County, CA can help you control your highs and lows.
When a business experiences a busy period, some may find it hard to meet the increased demand. Whilst in the quieter period, it can be challenging to meet day-to-day running costs.
Get to know your seasonal cycle
To keep your cash flowing all year round, it’s important to understand your ups and downs. Over time, your financial records will highlight trends that can steer your business decisions. For example, if you quieten down during summer, you may choose to focus on marketing so your business is booming in fall.
Be prepared for gaps in cash flow
Certain types of companies can be subject to extended gaps between when they sell a product or service and when they get paid. Businesses should be prepared for gaps where there is little funding. Remember that not all seasonal imbalances are predictable. A natural weather event, for example, can cause an unexpected cash flow gap.
Consider prices
Customers have different levels of cash flow, and you don’t want to leave out a section of the market that need your service but cannot afford it. When you take this into consideration when pricing your product or service, you learn to navigate the various cash flow cycles of your customers.
Maintaining your finances is a balancing act. For more guidance on growing your own business, contact us today or visit us in Camarillo, California. We are here to help.
