If you are a small business owner whose sales vary, you must seamlessly manage these changes to sustain maximum profitability.  These types of fluctuations increase the pressure on your business drastically.  How should you plan for these variations?  What is the appropriate time to save money and what is the appropriate time to spend on additional inventory to satisfy your upcoming sales increase? You must also maintain a consistent working capital to meet the demands of payroll and other daily operational needs.  To aid you in this process, you can take advantage of a small business merchant cash advance. A merchant cash advance is not a loan, rather it is an advance against your company’s future credit and debit card sales.  There are no invoices or checks to write and your payments can adjust with your credit card sales.  

Obtaining funds from a merchant cash advance to stock your shelves can provide a high return on investment. If your business is seasonal, then you probably do not make any large repairs or investments while sales are slow. There would normally not be a lot of cash flow to cover these major expenditures.  With the right preparation, you could utilize your merchant cash advance funds to multiply sales and provide much needed reinvestment into your business. 

Certain times of the year like the holiday season provides a great opportunity for your company to maximize your return on investment.  Gina & Company Coaching and Consulting says “Business owners should invest in their businesses during the holidays to ensure the best customer service and repeat business. It’s too easy for customers to find new vendors, services and products when you don’t meet their expectations. Your chances of losing customers are higher than usual during this time if customer experience is poor.”  Most small businesses cannot afford to lose any business and depend heavily on the retention of their current clientele.

If you are in the retail industry, purchasing additional inventory for seasonal periods can be especially intimidating.  You have to ask yourself how much inventory to purchase and how often?  If you wish to make these purchases from the profits of your last holiday season, it can actually be a drain on your profitability because of the time and space you will need to hold onto it.  Instead, you can time your purchase effectively with the funds from a merchant cash advance to avoid having too much inventory on hand.   Make sure that you are financially prepared to provide the items that your customers will be expecting.