How to Manage Cash Flow During Slower Summer Months

For many of us, the summer season ushers in excursions, dinner al fresco, backyard BBQs, and days at the pool. It’s the best. But for many small businesses, the summer season can bring a dip in revenue. Customers are on vacation, foot traffic slows down, and expenses like utilities or staffing may still stay high. If your business typically experiences a seasonal lull, managing cash flow becomes critical—not just to stay afloat, but to prepare for a stronger finish to the year. Want to get ahead of the game and learn how to proactively manage your cash flow during the slower summer months? We got you.

Forecast Your Cash Flow

Start by reviewing your cash flow statement from last summer, specifically focusing on how much money came in and went out month by month. Use that information to build a realistic forecast for this year. Identify potential cash shortfalls in advance so you can make informed decisions now—not when your bank balance is already tight. Simple forecasting tools or software like QuickBooks, Xero, or Wave are super helpful in projecting your cash position week by week. Be sure to include any seasonal expenses, expected dips in sales, and fixed costs you’ll still need to cover.

Trim Non-Essential Expenses

During slow periods, every dollar counts. This is the perfect time to audit your expenses. Are there subscriptions you’re not using? Can you negotiate lower rates with vendors or service providers? Can you postpone non-essential purchases or projects until business picks up? Even small reductions—like pausing paid advertising on underperforming channels or switching to more energy-efficient equipment—can make a noticeable difference over time.

Offer Promotions to Drive Sales

While demand may naturally dip, you can still spark interest with creative promotions. Consider offering summer-specific discounts, bundles, or flash sales to generate buzz and bring in short-term revenue. If you’re a service-based business, offer discounted packages or early-bird deals for services to be redeemed later in the year (think Holiday season!). This boosts your current cash flow and keeps customers engaged.

Encourage Faster Payments

If you work with clients or customers on payment terms, encourage quicker payments by offering small discounts for early invoices. For example, “2/10 net 30” means the customer gets a 2 percent discount if they pay within 10 days instead of the usual 30. Additionally, review your accounts receivable and follow up on any outstanding invoices. Automatic payment reminders can keep the cash flowing in.

Adjust Staffing Strategically

If your business operates seasonally, consider offering reduced hours or flexible shifts to part-time staff. This approach can help control payroll expenses without having to make difficult layoffs. Alternatively, use this time for staff training or cross-training to prepare for busier seasons. Investing in your team during slower months can pay off when customer demand increases again.

Build a Cash Reserve—Starting Now

If your summer slow season hasn’t hit yet, it’s not too late to start setting money aside. Even a modest cash reserve can provide a safety net for the months ahead. But if you’ve already hit the lull, make a plan to begin building a reserve once revenue picks up again. Set a monthly savings target to help smooth out seasonal dips in the future.

Explore Financing Options—Before You Need Them

It’s always easier to secure a loan or line of credit when your business is in good shape. If you anticipate a cash flow crunch, explore financing options early. The best-in-class loan offerings available at ARF Financial are a must-see.Bankroll, for instance, is the ultimate Revolving Line of Credit. It was designed to tackle the primary concern small businesses have: not having cash when you need it most. With Bankroll, you’ll get the highest loan approvals (up to $1,000,000), fixed terms up to 36 months, and a fixed weekly payment. You decide when you want to borrow, how much you want to borrow, the amount of your payment, and how long to keep the line open.

Slower summer months don’t have to derail your business. With a little planning and creativity, you can stay cash flow positive and use this time to strengthen operations, build customer relationships, and prepare for a strong second half of the year.

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