Managing seasonal cash flow in the trades
Many trades have a peak season and a lean one. Planning for the lean months while you are busy is what keeps the doors open.
- Forecast three months ahead. List known jobs, recurring revenue and fixed costs. Update it monthly.
- Build a reserve in busy months. Set aside a fixed share of each payment toward slow-season costs.
- Sell maintenance agreements. Recurring visits create steady work between peaks.
- Collect deposits. Deposits bring cash in before you spend on materials.
- Watch receivables. Chase unpaid invoices weekly; slow payers hurt most in lean months.
Common questions
How big should my reserve be?
Many owners aim for a few months of fixed costs. Ask your accountant what fits your business.
Do maintenance agreements really help?
They give predictable work and customer contact in slow months. Results vary by trade and area.
See also the contractor guides and free tools.
General information, not legal or financial advice. Verify with your attorney or accountant.
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