Seasonality : Budgeting : Cashflow

Every business will have a unique, natural rythm to income and cash flows. Further, increased income does not always directly equate to a correlated increase in cash flows.

Everyone, at various times, experiences the famine of the desert.

It is almost inevitable. This can cause a great strain for business owners if they do not get ahead of it for the next coming season by evaluating the past and planning accordingly.

Fortunately, we do not have to brave the harsh expanse without provisions, if planning and budgeting are correctly executed. Whether you are a seasoned business owner with many years of operations under your belt, or you are just starting out, historical data can be gathered, analyzed, and utilized to create Master, Sales, Rolling, and Flexible Budgets to guide us through desert-like times. These tools allow for a business to ensure a net positive cash flow to cover payroll and fixed costs when sales and income dip.

Running a business with sustainability in mind considers the natural ebbs and flows of the market and prudently establishes practices that will allow for the business to endure.

There is always hope~