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Making the most of your down business cycle

Learn how to build an accurate income forecast for your business

by Leah Grant  |  2098 views  |  0 comments  |      Rate this now! 

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 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.

About the Author

New Business Mentor Leah Grant publishes Startup Success, a weekly ezine. If you're thinking about starting a new business or are in the early phases of entrepreneurship, subscribe now for tips, articles and resources at

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