Seasonal businesses often face intense cash flow fluctuations. It is important to optimize your operating cycle to prepare for the down time your company will face.

Ideally, your seasonal business should stockpile cash received at the end of its operating cycle to help finance the next operating cycle. Sometimes these reserves may not be enough, especially for high-growth companies, so your team may need to consider applying for a line of credit to avert potential shortfalls. Compiling a comprehensive loan package, which includes your historical financial statements and tax returns, will increase your chance of having a loan approved.

Business owners cannot rely on gun instinct. It’s important to draft a formal business plan that includes financial projections for next year. It’s also important to develop budgets, systems and processes and procedures ahead of the peak season to effectively manage your operating cycle.

Contact our team for assistance overcoming these obstacles and strengthening your bottom line.