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A cash advance for business owners is a fast and simple option to help companies who struggle with seasonal periods.
Factors such as seasonal holidays, weather, location, religious celebrations and political issues can influence or disrupt a company’s trading cycle. This can lead to worrying cash flow issues.
We’ve put together 4 key tips to help you overcome seasonal peaks and troughs throughout the year.
It is essential to know your company’s business cycle throughout different seasons. Analyse previous years’ sales to discover highs and lows within the business. This can be a challenge for new companies, as you won’t have previous data to analyse.
A great place to start is by considering your competitors seasonal cycle. Keep an eye on the competition to see what promotions they run at different times of the year. If a business has been trading for several years it is a lot easier to find seasonal cycles. No two years will be the same, but it will be useful when planning and forecasting.
With the analysis of previous activity, you can plan for the times when seasonal dips hit the hardest. Planning promotions around these times is a fantastic way to drive sales. Consider a “mid-season sale” to sell off last season’s stock filling your premises. If you don't have excess stock, run mid-season sales by offering discounted services.
Make sure that at busier times of the year your business is fully stocked. If you need initial help to buy extra stock a cash advance for business owners can be the prefect option to help you on your way.
It is also worth hiring extra staff to ensure a great customer experience. If you’re a restaurant or pub owner, you may need to recruit extra staff around the times that you’re running discounted offers on food or drinks. Maintain good relationships with freelance or seasonal workers, it's a great way to stay prepared for busy times!
When forecasting cash flow for the coming year, seasonality is one of the most critical elements to consider. Many businesses suffer from cash flow issues around busier periods. Effective planning is one of the easiest ways to overcome this issue. Reviewing previous years’ figures is key to ensure that you have sufficient working capital throughout seasonal peaks and troughs.
Quick Capital’s simple and flexible cash advance for business owners can help you overcome disruptions to cash flow. A cash advance for business owners is also the perfect way to cover unexpected costs quickly, such as unexpected tax bills and equipment repairs.
To find out about Quick Capital’s cash advance for business owners, visit www.quickcapital.co.uk to watch our video or you can call one of our advisors on 0800 3777 402.
Filed under: Advice