You don’t have to be in the snow removal business or sell prom dresses to be affected by seasonal changes in your cash flow. Almost every business sees some natural ebb and flow in their income stream.
While these fluctuations may be challenging, they can usually be managed with a few simple steps. Below are three key strategies for staying on top of fluctuating finances.
- Keep track of all things cash-flow related. Examining your P&L is the foundation of managing your cash flow, but it is also important to track things like weather, community activities (think graduations, arts festivals or other attractions), and current happenings in your industry.
- Manage your expenses in accordance with your cash flow. If you make the bulk of your profits in one season, paying down fixed expenses like insurance or rent during your flush months can help save stress during those months where income is a bit tighter.
- Know your financial options. Cash flow management can be a bit tricky, especially if you are a new small business owner. Learning about additional financial options now can save you a lot of headaches when you’re in a crunch. You may want to look into a line of credit, for example, to fortify your cash reserves during lean times.
Rising Tide can be a valuable part of your cash flow management strategy. We provide accessible loan options that can help your small business weather cash flow fluctuations. We work with startups and small businesses who do not qualify at traditional banks, offering products such as microloans and lines of credit.
Additionally, Rising Tide has business advisors available to help you better understand your cash flow, as well as providing guidance on things like business plan development and financing options.
If you are interested in learning more about how Rising Tide can help your small businesses succeed, apply today!
