Running a seasonal business comes with unique challenges, especially when it comes to managing cash flow.
During busy months, money may pour in. But in quieter periods, paying the bills can feel like a struggle.
Whether you run a holiday rental, an event-based service, or a retail business with peaks and troughs, good cash flow planning is essential to staying afloat year-round.
In this guide, we’ll share cash flow tips tailored to seasonal businesses in the UK.
Understand Your Seasonal Cycle
The first step is knowing exactly when your busy and quiet periods fall. This isn’t always obvious, especially if you’re new or affected by trends, weather, or the economy.
Look at at least 12 months of sales and bank data to:
- Spot peaks and lulls
- Identify recurring patterns (e.g. slow January, busy summer)
- Anticipate when expenses rise (like stock in advance of Christmas)
Forecast Income and Expenses Across the Year
You can build a simple 12-month cash flow forecast.
This helps you:
- See when income dips and costs rise
- Plan ahead for VAT, tax, and supplier payments
- Avoid relying on last-minute borrowing
Even a basic spreadsheet can help you stay in control.
At Legacy Figures Accountancy, we help manage your finances including walking you through your cash flow forecast. Want to learn more? Let’s have a chat.
Build a Cash Reserve During Busy Periods
When your business is at its peak, it’s tempting to celebrate with new investments or personal draws. But it’s vital to set some of that cash aside.
Tips:
- Create a separate savings account for off-season use
- Save a percentage (e.g. 20%) of all income during peak months
- Use your forecast to set realistic savings targets
This reserve can cover overheads, keep you out of overdraft, and reduce stress in slower months.
Cut or Delay Non-Essential Costs in Quiet Periods
Look at what costs can be paused or scaled down during slow months:
- Pause or downgrade subscriptions and software
- Reduce stock orders to essentials
- Delay non-critical equipment upgrades
This doesn’t mean cutting corners, it means being strategic so your cash lasts longer.
Offer Off-Season Services or Products
Consider how you can bring in some income during quiet months:
- Offer off-season discounts to loyal customers
- Add new services that aren’t seasonal (e.g. consultancy, online workshops)
- Launch a subscription or pre-order model to smooth cash flow
Diversifying even slightly can make a big difference.
Plan Tax and VAT Payments Carefully
Big bills like Self Assessment or VAT returns often land right when cash is tight.
Tips:
- Put aside 20%–30% of income during busy months
- Use digital tools to estimate liabilities in real time
- If needed, speak to HMRC early about payment plans (don’t wait)
Final Thoughts: What’s Best for You and Your Business?
Seasonal businesses can thrive with the right planning.
The key is to understand your cash cycle, build reserves when you can, and adapt your costs and services to keep income flowing, even when things slow down.
Need help building a forecast or getting cash flow under control for the off-season? That’s exactly what we’re here for.
If you have any questions or need some guidance, get in touch today for a friendly, no-obligation chat.
