
Some retail and service businesses see their strongest sales during certain seasons. For instance, a landscaping business may see brisker business during the summer, while a holiday decorating service likely has higher sales at the end of the year. Indeed, many retailers, regardless of product, see their strongest sales during the end-of-year holiday season.
Because of this, retailers and seasonal service businesses often experience annual “sales slump” periods. However, that doesn’t mean the team needs to sit idle or that there aren’t smart strategies that can strengthen the company’s financial position. To make sure your business doesn’t fall into the red during slower sales periods, below, 14 members of Forbes Finance Council share steps to help ensure financial health year-round.
1. Ensure A Positive Operational Cash Flow
Get ahead of seasonal slow periods by making sure your operational cash flow is positive and setting aside reserves before the slow season hits. If it looks like your business doesn’t have enough cash flow to cover costs during a slow period, it might be necessary to get short-term working capital or a line of credit to help bridge the gap. – Xan Myburgh, Backd Business Funding