Many business owners mistake a full schedule for financial security. In my work I regularly see how quickly that assumption fails in seasonal businesses. This owner worked throughout the summer, but during winter he could not always pay his full director-owner salary. By looking six months ahead, we regained control over purchasing, salary payments and customer acquisition.
Every business has a quieter season
Summer is busy for many painters. For other owners, especially professional-service firms and some wholesalers, summer may be the quieter period. Such periods reveal whether the business has planned financially. Revenue temporarily declines, while salaries, taxes and other fixed costs continue.
As a growth partner I therefore look beyond growth alone. I also examine whether a business can finance the quieter months. This case shows why that matters.
The same stress returned every winter
I worked with the owner of a painting company that was strongly affected by the seasons. During spring and summer he had plenty of work. Customers were satisfied and revenue was healthy.
Winter was different. Weather conditions reduced the number of assignments, but costs continued. Some months he could not pay his full director-owner salary.
“How can I work this hard and still be unable to pay my own salary in full?”
I wanted to understand where the money went
We did not immediately look for additional work. First I wanted to understand why cash ran out during the same months each year. We mapped income and expenditure across the entire year.
The problem did not begin in winter. Its foundation was laid during the busy season. Plenty of money entered the account, but it did not have a clear purpose. Too little was reserved for winter, tax and future purchasing. The bank balance therefore appeared more generous than it really was; some of the money was already needed for costs that would arise later.
Cash regularly arrived too late
Invoicing also played a role. Invoices were sometimes issued later than necessary and customers then took several more weeks to pay.
The work had already been completed and the costs incurred. Meanwhile, materials for the next project had to be purchased. This created a gap between paying and being paid. I encounter this frequently: a business can have enough work and report a profit while still being short of cash.
More revenue was not the answer
The owner initially believed that he mainly needed more work. More assignments and higher revenue seemed the obvious answer. Yet additional work can increase pressure on the bank account.
Materials and extra capacity often need to be paid for first, while customers generally pay afterwards. Here too, projects were available but there was not always enough cash to start them without concern. Growth often requires cash before it produces a return. Revenue was therefore only part of the picture; the timing of incoming and outgoing cash was just as important.
His figures mainly looked backwards
His accounts were in order and his accountant did good work. However, the bookkeeping mainly explained what had already happened. What he lacked was a financial view of the months ahead.
Annual accounts show what a company earned, but not necessarily how much money will be available next month. An issued invoice already counts as revenue even when the customer will not pay for weeks. Salaries, tax and suppliers still need to be paid. Owners often know their revenue and profit but find it difficult to look ahead, causing important decisions to be based mainly on today’s bank balance.
We mapped the next six months
Together we created a six-month cash-flow forecast that the owner could maintain himself. We reviewed confirmed assignments, expected invoice dates and realistic payment dates. We then mapped fixed costs, tax, material purchases and the director-owner salary.
This made it possible to see in advance which months could become tight. The overview also revealed when too few new projects were scheduled. He could therefore start approaching new customers earlier. Financial planning became useful for sales planning too.
Cash from strong months received a purpose
We introduced fixed reserves. Part of the income from the high season was earmarked for winter, while other amounts were reserved for tax and materials.
The cash still sat in the bank account, but it was no longer treated as freely available. That distinction immediately created clarity. We also improved invoicing: invoices had to be sent promptly after work was completed and outstanding amounts were monitored more consistently.
We reviewed the figures regularly and maintained a rolling six-month view, updating the plan whenever an assignment moved or a customer paid later than expected.
Financial calm returned
The results were concrete. Materials could once again be purchased on time and the owner could pay his full salary during winter.
I saw his attitude change. Instead of reacting to problems after they occurred, he could see them coming and make a choice in advance. Winter no longer felt like an uncertain period. He knew how much cash needed to remain available and when it was time to find new customers.
This is what healthy growth means to me
As a growth partner I do not only look for ways to generate more revenue. I also examine what new assignments cost before they produce cash and when customers will actually pay.
A shortage of work was not the core problem in this case. The owner lacked a clear overview, fixed reserves and a financial rhythm. Once we changed those elements, the recurring shortages disappeared.
He could purchase materials, pay himself in full and start customer acquisition earlier. To me, that is healthy growth: not merely selling more, but building a business capable of funding that growth.
When do other owners seek support?
This engagement made me curious about other business owners. When do historical figures stop being enough, and what do owners then expect from a business coach or growth partner?
I am conducting a short survey on this subject. It takes only a few minutes: complete the survey. I plan to share the most important findings in a future article.
A recurring cash shortfall is no longer a surprise once you look ahead. It becomes a problem you can address before the stress begins.
Founder of Impact Growth Partner. She helps SME owners translate financial information into better decisions about cash flow, profitability, strategy, organisation and business value.
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