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Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

May/June 2019

Best Practices for Seasonal Businesses

Best Practices for Seasonal Businesses

Summer’s coming and for many businesses, these 100 or so days will comprise the vast majority of their income. How do you get the most from this short season?


Manage Your Cash
When your sales are concentrated into a six-month or smaller window, you need to follow best practices in cash management. This includes keeping a lid on expenses and making purchases when items you need go on sale. Because consumer attitudes change, storing leftover inventory in the offseason could be costly, so avoid overbuying supplies and make sure you have room to store them. Also, pay close attention to outstanding invoices and maintain a cash cushion.


If possible, create an alternative income stream or two that would profit if your main business falters. For example, a business that rents bicycles at a shore location might also repair other people’s bikes. Landscapers might turn to snow removal during the off-season in areas of the country with four seasons. Or turn a hobby into a part-time gig during your offseason to keep the cash flowing.


Anticipate Bumps
Keeping a cash cushion becomes vital when a natural or manmade disaster slows your business to a crawl during peak season. This is common at summer resorts in the mid-Atlantic and northeast, where a few weekends of bad weather can take a huge bite out of what may only be a three-month high season. While you manage your risk, you can also manage your cost of risk by carrying property, liability and flood insurance.


Get Creative
Plan for success by hiring retirees or semi-retirees looking to work a few months a year every year. Or hire hardworking teens looking to earn extra cash. Work with neighbors and complementary industries to offer discounts and other deals to your customers. A restaurant owner, for example, might offer discount meal coupons to a local motel owner as an enticement for motel customers.


What About You?
While your business may be seasonal, your financial wellbeing should be maintained year-round. Leverage business dollars, when possible, to buy appropriate insurance and to invest for your future in retirement. Talk to a financial professional to learn more.


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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
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