Seasonable Business Cash Flow

It can be quite the hassle as a seasonable business. No matter how well you plan the year, you always seem to be struggling a while after the profitable season ends. Cash flow is somehow always a problem, but it’s not impossible to manage. Sure, it’ll take some effort and organization on your part, but it’s nothing that a dedicated business owner can’t handle.

There are a number of seasonal businesses, from farming to tourism and all the way to event planning. Although the nature of these trades is different, managing cash flow will be similar because of their seasonal characteristic. Here is what you have to do.

Know Your Seasons

You may think this is basic knowledge for any seasonal business owner. However, in a majority of cases, business owners horribly overestimate their peak season. Moreover, they underestimate the costs of operating during off-seasons. When you know the exact timings of your season, you’re able to derive accurate conclusions that set apart fact from fiction.

If you run a new business, you’ll have to start taking detailed notes from year one. Conduct research based on other seasonal companies but if you’re established, it’s time to bring out the records. Once you figure out your business’ periods of maximum revenue and expenditure and vice versa, you can plan on a forecasting strategy.

Forecast Your Business

By forecasting your cash flow throughout the year, you’re able to evaluate how much funding you have, in response to the costs. You should analyze your records to form a plan with regard to spending and sales, and how much cash flow you can retain after peak season.

You should form an analysis of sales and spending forecasts based on the factors that drive it. This includes product lines, channels, and units. Then, you should check whether your evaluation matches the accounting records.

When you’re forecasting cash flow for your business, ensure that it manages any references to sales on account, inventory management, asset replenishment and repayment of debts, which are sensitive to cash flow. When you keep track of all these things together, you won’t have to think about why unknown costs keep popping up despite the effort.

Maintain Forecasts with Concentration and Money

Making a record of forecasts once isn’t enough and never will be. The market and economy can shift within a second, so you must not fail to keep the changes reviewed and revised. This theory of development ensures that you know what’s happening, so you can adopt a new strategy next time.

Know the Expected Expenses

In a business, there are always some recurring expenses that remain fairly constant over time. You should account for these so that you can accurately forecast expenses during off-peak seasons. These costs include the price of utilities and rent but some that won’t come to mind. To know those, you’ll need to break into the account books.

In the end, you’ll be left with a somewhat expected figure as to how much you’ll have to pay in quarterly taxes and business insurance premiums. You should add these to your forecast because planning for them will be helpful during seasons with low business.

Address Changes

Sometimes, it’s enough to simply know when your business becomes vulnerable. Even if you can’t manage things yourself, you can still ask for some help. Instead of worrying about what terrors the off-season can bring to your business, think about what you can do to calmly face the inevitable. Surely, you’ll run out of capital no matter how well you manage cash flow so what does one do? You take a loan.

Think of it this way, taking an emergency loan just days before making your employees’ payroll will be very different from applying for a bridge loan months before off-season starts. For starters, you’ll get a good interest rate, and you’ll develop a good relationship with the bank.

A misconception is that well-run seasonal businesses shouldn’t need loans to generate cash flow during the off-season but this isn’t true. It’s much more achievable for a seasonal business to anticipate extra costs beforehand and take a special loan as one sees fit. Investors and bankers will show a positive response to good planning and anticipation so you shouldn’t forget to tell them about your business’ seasonality.

Restructure Some Expenses

As a seasonal business, you’ll need to pull some strings here and there to make sure that you get through the rest of the year until you’re back in peak season. One of the things you can do is to structure certain expenses in a way that they match the revenue you have in the current season.

For instance, if you make handcrafted products and deal with vendors for materials, you can form an agreement with them so they demand bigger payments in peak season while making off-season payments smaller.

Empty Your Shelves

In today’s world of consumers, quite a lot of people don’t shop during the season. This could be due to a number of reasons; they’re trying to avoid the crowd or they simply don’t want to pay the higher price. They’re waiting for an off-season sale to stock up, and as a good business owner, you should provide.

Empty out any leftover inventory from peak-season by selling products at a fair discount. This will help you generate extra revenue, as well as a pool of off-season customers. Not to mention, you’ll also be reducing the expenses of storing items.

Improve Your Line of Expertise

This is the final piece of advice that any seasonal business can get and it has more to do with becoming a multi-seasonal business. Experts suggest that seasonal businesses expand their line of work by offering different services during the off-season.

For instance, roofing companies take up jobs like snow removal during the winter. Your business can do something similar and boost cash flow throughout the rest of the year.

Conclusion

These are some of the solutions a seasonal business can adopt to improve their cash flow during the off-seasons of the year. Now, there’s no reason to do everything simultaneously. However, consistency is key. By slowly working towards a successful off-season period, seasonal businesses can improve strategies and boost peak-season practices.

Visit free.casino to find out more regarding free casino games check out this page for a dependable seller that will give you the 4d you're looking for quickly and easily.
Posted in Uncategorized | Comments Off on Seasonable Business Cash Flow

A Product Management Challenge: Pot

So you think that you have a tough job, eh? Just imagine how hard it must be to the product manager who works for one of the new firms that has just popped up to start legally selling marijuana! In the United States, a handful of states now allow marijuana to be sold either for medical or for recreational purposes. This means that there is a legal market for consumers. Just exactly the kind of situation that calls for a bit of help from a skilled product manager with a well-thought out product development definition.

The Problem With Pot

In the United States, the state of Colorado has legalized the recreational use of marijuana. However, change happens slowly and right now how consumers can get the marijuana that they want has not yet caught up with the new demand for the product.

What this means is that the pot dispensaries that are currently the only places where people can legally buy pot are not really places that you’d want to go. They are dingy, poorly lit, and have bars on the windows. The staff behind the counter wear hoodies and look like they smoke as much pot as they sell. All in all, this is not the type of place that most law abiding citizens would really like to go.

An additional challenge comes up when customers attempt to purchase marijuana. Currently, the product that is available to consumers goes by names like “Big Buddha Cheese” and “Green Krack”. Just exactly what is being bought here?

Making Cannabis Cool

The product managers who have been brought in to transform Colorado marijuana from an illegal street drug to an everyday recreational activity have their hands full. Somehow they have to transform the process of buying pot and make it more like going to Walmart.

The first step in the process is to change where marijuana gets purchased. The new dispensaries now have clever names like “Mindful” and they are trying to modernize the selling of cannabis. In these new stores, employees wear uniforms and the company logo is everywhere. If product managers can rebrand pot successfully, then they’ll really have something to add to their product manager resume.

The final step in the rebranding of pot is to try to work it into more of everyone’s everyday life. What this has meant in Colorado is having the Colorado Symphony host shows called “Classically Cannabis” and holding cannabis cocktail parties. Not content with those efforts, a new yoga class called “Vape and Vinyasa” has been introduced along with a new smartphone app that allows the placing of online pot orders.

What All Of This Means For You

Marijuana has become legal to sell, buy, and consume in a number of places in the United States. Now that there is a product to be sold and consumers who can legally buy it, it’s time for the product managers to step in. However, pot has been illegal for so long, what’s a product manager to do with this new type of product in order to make it a success? Our product manager job description never told us how to handle this situation!

In Colorado, the new companies that have started to grow and sell marijuana have discovered that they have a problem. There is no efficient way to distribute their product. The few stores that currently sell pot are very seedy looking and are staffed by people who are really best suited to interacting with people who use illegal drugs.

The new marijuana company product managers are starting to make changes in order to grow their market share. They are rebranding a number of ways that people refer to marijuana in order to make it more palatable to a larger audience. They are also starting to cross marijuana with other activities that their target audience is participating in.

It’s still early on in this new product field. The pot product managers have a lot of work ahead of them. They have to recast the image of their product from forbidden illegal drug to desirable recreational pastime. The good news is that it can be done. Now it’s just up to the product managers to find out how to do it.

Posted in Uncategorized | Comments Off on A Product Management Challenge: Pot