Summary:
Learn how to build an accurate income forecast for your business while creatively taking
advantage of your slower months.
When I first started coaching my mentor coach warned me
that August and December tended to be slow months while January, April and September were
the busiest months in terms of clients seeking coaches. Armed with this information, I was
able to build a realistic income forecast for my business as well as plan personal
downtime.
Planning around my business cycles is one key way I have
been able to stay in business for 12 years.
Unfortunately, too many people believe that the amount they
make one month will translate to all months and then they're in trouble when that's not
the case. I have seen it too many times. A business owner will have a big party and
overspend after having a great month then they are short when a lean month comes along.
Most businesses have an annual cycle and it's imperative to
know what that cycle is for your business.
Determining the Business Cycle
If you have been in business for a year or more, go back in
your records and chart the amount of business each month. Is it steady? Are some months
much higher while others much lower? Use this information to define your business cycle.
If you are just starting out, do some informational
interviews with other people in your industry. Ask what the busiest times of the year are
and what the slowest are. Ask what affects people's decisions in buying.
It's important to make the distinction that the business
cycle I'm speaking of in this article is not dictated by the economy but rather by the
buying habits of your clients and the seasonality of your market. Slow periods created by
a down economy require additional measures be taken to generate business.
Making The Most Of Your Business Cycle
Once you determine your business cycle, brainstorm ways to
leverage or minimize the slow times. Here are some ideas:
Do side work:
For example, I teach classes at a virtual university. During slow client months I keep my
calendar full by teaching more classes and replace the client cash flow with teaching cash
flow. This minimizes the impact of client's taking vacations and breaks that month.
I would recommend that the side work either relates to your
main business, compliment your main business or feed a passion in you. The point is to
stay engaged, not to start something completely new and different.
Catch-up:
Although it's great to think we get everything done we need and would like to, the reality
is we often don't. Make a list of unfinished projects such as scanning business cards,
calling old contacts, updating addresses, hiring a new CPA and plan to knock out the list
during a slow month.
Create:
Design new products, set-up partnerships or create a marketing campaign that will roll out
following the slow cycle.
Plan:
It seems easier to take time to think, plan and strategize when there are fewer day-to-day
activities happening.
Update systems:
When fewer people are using the systems you have in place it's easier to transition to
newer, better ones. Some systems to review: credit card processing, database, newsletter
provider and communications among your team.
Schedule doctor's appointments:
I book all my annual doctor's appointments during my slow months. Doing so keeps
appointments from conflicting with my client call schedules and gives me more wriggle room
around the appointment so I don't feel rushed to get back to the office.
Connect:
Meeting friends for coffee or taking the time to have lunch with your spouse can be a
luxury during a busy month, so plan some outings when you can.
Rejuvenate:
Slow months can be the perfect time for you to get away because fewer clients will miss
you. I take two to three weeks off in December to spend quality time with my family in
Colorado. I find that during this time I can turn off my computer completely and enjoy
really quality downtime to refresh my creative juices.
To offset the weeks without work, I offer clients the
opportunity to pay upfront for the following year's sessions if they need more tax
write-offs in the current year. Typically, two to three clients take advantage of this
offer that helps to keep my December income balanced with other months.
No matter how you choose to use the extra time during
slower months, make sure you do use it efficiently. Time is a commodity for small business
owners.
(c) 2009 Leah Grant Enterprises LLC. |
