My business has seasonal surges, which results in bumpy cashflow.
I’m worried this will hamper our growth. Is there any particular strategy I can put in place to ensure a steady, healthy cashflow?
Get daily business news.
The latest stories, funding information, and expert advice. Free to sign up.
Businesses in specific industries, such as retail and tourism, are often affected by seasonal fluctuations.
The rollercoaster ride of living from a sales flood to drought can often be unnerving and stressful for the uninitiated.
Planning is the key to survival and realistic cashflow forecasting is a business’ best friend.
Cashflow forecasting need not turn into a PhD thesis. Keep it simple and be reasonable with earnings/revenue and try not to downplay your outgoings.
You can find plenty of cashflow templates online, but a simple spreadsheet highlighting your expected monthly revenue and outgoings projected over a 12- to 18-month period should do it.
Just remember – don’t let the cashflow forecast gather dust – it is a dynamic document that must be regularly updated.
A well prepared and maintained cashflow forecast will highlight the ‘surges’ and let you plan purchases without you hitting the bread line. It should also play a key role in determining your marketing and advertising plan.
A great piece of business logic and advice handed to me many years ago went like this: ‘The busier you are, the more you should promote’. It is counterintuitive and not something that most businesses do.
Most wait for a lull in sales, panic and then start pushing the brand. If you’re aiming for steady and consistent cashflow – you have to plan for it months in advance.
Growth without a strategic plan in place often results in confused and unhappy clients and staff.
Running a business is more than just looking after your current clients, it is also about growth.
Don’t rely on chance or luck for growth – plan your marketing accordingly, articulate your vision to staff and clients and watch that cashflow turn from a fun park rollercoaster to a leisurely cruise.