Cash Flow Forecasting for Seasonal Businesses
Surviving the off-season requires discipline. How to model your cash flow when revenue isn't flat.
By Marcus Aurelius · Finance Strategist
· 1 min read
Strategy
If you run a landscaping business or a ski resort, standard monthly budgets don't work. You make 80% of your revenue in 4 months.
The War Chest Strategy: During peak season, operate as if you are broke. Siphon excess cash into a high-yield savings account that is "locked" until the off-season. Model your expenses as fixed (rent, insurance) vs. variable (labor, materials) to know exactly how much you can scale down when demand drops.