In a seasonal business, how do I determine the cashflow and take advantage of the peak season of sales?

By Ray Silverstein

Opinions expressed by Entrepreneur contributors are their own.

I have a personal power generating plant that runs on diesel. The cost of diesel and erratic production of ice blocks because of inadeqaute power output from the power generating plant makes it impossible to produce ice blocks consistently during the peak season. This season is for a period of 4 months in a year. Meanwhile the sales person does not keep regular records of sales and inventory. For the two years of operation, the business maintains the itself; however, I am unable to make a good margin to generate any income for household use from this business.

The business has been on for two years, but I find it difficult to detetrmine the cashflow, and to take adavantage of the peak season of sales. Can you help with suggestions please?
The obvious answer is to increase your capacity by either purchasing additional diesel generators or renting them only during the peak period.  It is common for sales people not to keep records.  I would suggest you hire a clerical assistant to keep the sales and inventory records so your salesperson can sell full time.  If you cannot afford a full time assistant, hire a part time person.  A college student might be a good choice.

Ray Silverstein
Wavy Line

Ray Silverstein is the president of PRO: President's Resource Organization , a network of peer advisory boards for small business owners. He is author of two books: The Best Secrets of Great Small Businesses and the new Small Business Survival Guide: How to Survive (and Thrive) in Tough Times . He can be reached at 1-800-818-0150 or ray@propres.com .

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