Planning Cash Flow for the Slow Season
Seasonal businesses earn most of their money in a few months and spend steadily all year. Payroll, insurance, truck payments and rent do not slow down when the phones do. The gap between those two patterns is where cash trouble starts, usually a few weeks after the busy season ends, when the last invoices have been collected.
Four numbers to know before the busy season ends
- Your monthly fixed costs. Everything you pay whether or not you work: payroll for the people you keep, rent, insurance, loan payments, software. This is what the slow months cost.
- How long the slow season really lasts. Not the calendar months, but the weeks between your last strong collections and your first busy-season deposits.
- Your collection lag. How many days after you finish a job you actually get paid. The longer the lag, the later the low point.
- Your floor. The minimum balance you want in the bank at all times. Below it, you are paying bills in the wrong order.
Turning the numbers into a plan
Multiply fixed costs by the length of the slow season, add a cushion, and compare it with the cash you expect to hold when the season ends. If the answer is short, you have time to act: set aside cash during peak months, line up a credit line before you need it, move a large purchase to spring, or sell maintenance plans that bring in revenue during quiet months.
A 13-week forecast shows the next quarter week by week. A 12-month view adds the full seasonal cycle, so the winter gap shows up in the summer, while there is still time to plan for it.
The Plus tier is built for exactly this.