When the busy season hits, you don’t want to leave money on the table. The problem, of course, is that a busy season follows a slow season — you might not have the cash at hand to fully take advantage of the season coming up. What you need is additional working capital.
It’s easy to think of seasonal businesses as being those that deal with the outdoors, summer, or the holidays. But in reality, nearly every business is seasonal. There are times when spending universally goes up (such as during tax season), and there are times when spending universally goes down. Companies that are tracking their sales month by month are bound to see some seasonal trends. And companies that haven’t seen any seasonal trends may need to improve upon their analysis.
Customers who are procured during busy times are customers you want to keep coming back. If you aren’t able to sell to them because you’re out of product, that’s a customer that you aren’t going to be able to secure long-term. Busy times serve as a showcase for your business and can help you build your sales throughout the year, not just seasonally. And because of that, you need to be able to fulfill your orders during your busy time, and you have to be able to fulfill them quickly.
Let’s say that you can move $10,000 worth of goods, but you only have the cash to buy $2,000. That means you’re not able to use your busy season to your advantage. For most companies, busy seasons carry them through lean times, and being unable to take advantage of a busy season can lead to disaster overall. You want to be able to sell as many goods as your customers will purchase, and that usually involves having to get additional capital through a cash infusion. Remember — The more goods you purchase during these times, the more revenue you make.
A small business loan can be exactly what a company needs to start building its profitability during its busy season. By leveraging small business loans, you’re able to invest more into your business, get a greater return, and use that return to both pay off the loans and revitalize your business. If you’re confident about your busy season, then a loan is largely inconsequential; it can be paid back quickly after the profits are made. Short-term loans like these are frequently used, especially in cash-based businesses like restaurants.
Busy seasons come and go, but planning does not. If you’re able to use small business loans for your busy season, you’ll be able to improve the overall economic health of your business. Not sure where to get started? MY Company Funding has you covered. Check out MY Company Funding today to find out more about your options.