Managing cash flow is difficult for businesses of any size, this is because the onus is usually put upon profit. But for small businesses, it can be even more pressing as many rely heavily on seasonal trends which should contribute to steady cash flow throughout the year. So if you’re a seasonal business, that’s why managing cash-flow is important.
Winter is a tough period for many companies due to the short trading periods, never mind the potential work interruptions because of the weather. A combination of factors can affect the productivity within the winter months, and as a result can have a significant impact on budgets and growth potential. But just because of the slow nature of work within the winter months, your company shouldn’t suffer.
It is important to you that your business is still functional and operating at all times, with the goal of long term success in mind. This therefore means a continued source of cash flow, even in times of slowdown. Here are 3 tips to help your business in the winter.
- Evaluate finance options
Even though your business could survive in the short-term, in the hopes that winter doesn’t last too long, it’s still best to look at the long-term bigger picture. To ensure you are prepared for business once the bad season ends, you should invest in your business. This is where alternative lending solutions could be invaluable, re-financing your assets could inject cash into your business.
- Look for alternative work
Another way to increase cash flow is to tailor your services to the demand and also suited to the environment. For example if you’re a landscaping business you could expand your business to include maintenance related issues. This would then see your business through the winter months.
- Lease instead of buying
Leasing equipment will ensure to keep your business running but will also reduce the immediate reduction in cash. This will then leave you plenty room with your cash flow and expenditure.
Making the most of the options available to you is crucial to overcoming a winter slowdown. We offer funding solutions that could get you through this tough winter period.
If you would like to discuss your funding options, please call us on 0845 054 8560.