Sales swings are normal. It is experienced by any sort of industry especially when trading seasonal products or services. Profits may double at a time, and sometimes, you may realize that you have deficits. At times, though demands perk in, you cannot fully satisfy customers due to manpower shortage or delayed inventory. Thus, you end up loosing them. Some factors are out of your control. Income flux is also due to the economy, inflation, oil price hike, climate change or massive layoffs. Regardless of any factors, you should outlive them to survive in the game.
Fortunately, there is always an answer to a problem. In terms of cash flow shifts, coping up with it is the best defense.
Plan ahead before you expect income fluctuations
Planning is the best protection you can do against inconsistent cash flow. Plot out your income projection. With this, you can identify the time of lows and highs. You will be ready when that season comes. If you do not know how to make a cash flow analysis, you may use PlanWare's application software. You will be guided on how to construct income projections with its user-friendly templates. You may also get assistance from ForecastPro. They help out in sales forecasting through software and seminars.
Cut-off spending during low season
When your sales is on its peak, do not overspend your income. Be wise in your expenses. You will need more during your off-peak seasons. You should have saved something to back you up when your income is brittle to be stretched. Find out how to save money when your business is under pressure.
Good Time Management
As an entrepreneur, you will never find adequate time for different tasks. Good time management is the key to this especially during busy seasons. Identify your priorities and act on it accordingly. It is a wise idea to keep in touch with co-entrepreneurs to pick up advices and to learn tactics on how to deal with well with your business. You may maintain an activity log during peak and off-peak times. With this you will know how you spend your time. If you are not busy, give time to learn time management techniques as your defense when hectic seasons come.
Attract sales during an off-season demand
Think of strategies on how to sell off-season products during critical periods. You may offer discounts, promotions, end-season sales to bring a good cash flow. Offer discounts to prospects and give discounts for cash purchases or paid orders through leading coupon mailers like Money Mailer or Valpak. You may also e-mail coupons through the service of mUrgent's e-Coupon Club with their customized coupon designs, templates and limitless email volume.
Diversify
You may offer product that counterpart your current goods that can boost up sales on risky periods. Why don't you team up with other companies? You can also acquire license for your merchandise. Or, expand to new market with your current goods.
Know the 10 ways to diversify your business at Entrepreneur.com. Do you have ideas on how to diversify your business? Check out if those ideas will work on the idea evaluator online of JPB.com
Expect staffing needs
The swings of your income go along with your demand on manpower. You can hire employees on a contractual basis for your peak period to easily trim them down when income decreased. Cut off employee training expenses by hiring your staff from local staffing agencies. With them, you may hire the same workers after every season to save money in new employee training. The American Staffing Association has many temporary staffing agencies you can consider by skills and services they offer along with their location.
Keep a maintained inventory
Efficient inventory system is very vital in the existence of a business especially if you sell seasonal goods. Project how much goods you need. Identify when you will need them. Additionally, an efficient system for managing stocks, tracking products and monitoring sales and returns is very beneficial for a business. The NetSuite, QuickBooks or Microsoft Office Applications can ease up inventory management. They all have demo and templates you can use for keeping an inventory.
Hints
Consult a financial planner to help you mange a possible income fluctuation so that you'll be ready for it. Strengthen customer's trust; improve your business and processes when the times are low. Be an industry expert during slow period by publishing a book, giving business seminars or being a business columnist.
