Many Australian businesses experience winter cashflow woes. Whether it’s a cold weather construction shut down or a surf town tuckshop awaiting the summer months, many businesses experience financial problems due to the country’s ridiculously unpredictable weather.
And although business might be slow in these months, it doesn’t necessarily mean companies have to go without the money to pay rent, operational costs, healthcare and, of course, payroll.
It is important to find a way to balance the inconsistent flow of funding, and there are some wonderfully easy ways to do just that. Positive cashflow is essential to any company, and this is especially so for businesses that struggle during the winter months.
So, ideas like formulating new revenue streams, negotiating more favourable supplier terms and speaking with the best commercial finance brokers available are some of the ways to do it – let’s take a look at them below:
1. Find new revenue streams
The winter months are the perfect time to hone your creativity to generate new revenue streams. If you manage a small to medium-sized company that operates in Australia’s colder climates, you could try to expand your goods or services to satisfy your demographic’s needs at this time of the year.
For example, if you run a beach town cafe that absolutely thrives on the summer hoards slipping off their sandals and dirtying up your deck, why not advertise yourselves as a place for winter comforts, too?
You can’t go wrong with a homemade pie and cup of pea and ham soup on a cold winter’s day, after all…
2. Negotiate a better deal with your suppliers
If you run a business that could use a little more cashflow in the winter months, it might be a good idea to discuss your payment terms with your suppliers in the hope of negotiating larger contract payments in the busier time of the year.
Your business may thrive in the summer months, and this could be an easier, less stressful time to pay back those suppliers who are always on your back despite the winter months being a Debbie Downer for business.
3. Get the inventory management game down
Depending on the nature of your business, you might like to consider selling the last of your winter stock off at a discount price. This way, you can hope that you will not be stuck with extra stock at the end of the winter period and further sprucing up your balance leading into the warmer months.
4. Utilise an invoice clearing service
If you have clients that are always late on paying bills – thus rendering you unable to pay yours – this service could help with cashflow management. This service can help you advance payments on outstanding invoices, with any small payment potentially helping you overcome your current cashflow gaps and take your business into the warmer months.
5. Get on top of it early
Rather than expecting cashflow problems to impede on your business in the winter months, why not plan ahead to reduce its impact before it actually occurs. Ensure that you regularly forecast cashflow on both a short and long-term basis. This way, you can trust that you won’t be caught off guard when the weather gets wet and business dries up a little.
This may even include speaking with first class commercial finance brokers to provide you with some assistance whilst the weather takes its toll on your business. They can broker a solid financial deal to help you with your current cash woes until the sun brings with it some seriously good business.