How Seasonal Businesses Can Manage Up-and-down Cash Flow

Some businesses see steady sales throughout the year, while others see their revenue concentrated into seasonal segments — think tax preparation offices or ski lodges. These businesses have particular challenges when it comes to managing cash flow, since expenses have to be paid throughout the year, even when little revenue is coming in. We asked Rita Cheng, a financial advisor who works with small businesses and a member of NerdWallet’s Ask an Advisor network, about ways small businesses can use these high-revenue periods not only to fund year-round needs, but also to bolster the company’s long-term prospects. What steps should businesses take to prepare for a seasonal downturn? When the money is coming in, it’s important to be strategic with your expenditures.