How To Manage Cash Flow In Seasonal Business

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How To Manage Cash Flow In Seasonal Business
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• Cash flow can become quite fluctuating in the
  seasonal business period. But being prepared
  before hand with additional insights into your
  businesss finance system can help you in time of
  drought.

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Know when is your business peak off seasons

• The peak offseason of no two business will be
  the same. It mostly depend on what service or
  project you are offering.
• When your business is growing slow, is the time
  when you prepare for the next busy season, become
  proactive make a business plan before hand.
• Working hard to secure more business and
  customers during your peak season can set you up
  for the slower season. With increase in your cash
  reserve, you can be sure of a better financial
  position during the leaner months.

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Improved Credit Control

• Bad credit control can lead to a even more
  downfall during off-season. The main reason for
  bad credit can be late payments by your
  customers.
• Without working capital from late-payers, and
  fewer opportunities to gain additional income in
  quieter months, you may be unable for necessity
  needs.
• Shortening your payment terms, and requiring
  deposits, are also tried-and-tested ways of
  encouraging timely payment.

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Make your business plan beforehand

• Having a actionable plan made beforehand is very
  much important for seasonal business whose cash
  flow are unpredictable.
• By reviewing your business strategy you can
  understand your business in more granular level.
• Whether the problem is with your marketing plan,
  your team, or your current client offering, off
  season is the time to adjust it.

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Budgeting

• By thinking rationally you can make the right
  decision for your business save money. It goes
  without saying that you shouldnt spend
  frivolously when youre strapped for cash.
• But continuing to invest in growth is just as
  important. Cutting down your expenditure entirely
  will result in a lot of wasted time.
• Breaking down your budgets into smaller
  increments and tracking actual spending against
  them can show you exactly where your cash is
  coming from and going to. 

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Forecasting

• Build a cash flow forecast with the budget you
  have created, that can help you in predicting
  your finance future.
• A cash flow forecast shows you the amount of
  available cash in the bank at any one time, based
  on your budgets actuals predictions of income
  and expenditure.
• ProfitBoard can help you budget forecast for
  your business so as to keep you going during your
  off-season.

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