October hits, and I can see it in every seasonal business owner’s face. The summer money is spent, winter bills are coming, and that familiar panic sets in. “How am I going to make it through another slow season?”
I’ve had this conversation with hundreds of Michigan business owners over four decades. Construction companies, landscapers, tourism operators, agricultural businesses – they all face the same brutal reality. Six months to make enough money to last twelve months.
Here’s what I’ve learned: the businesses that fail treat every slow season like it’s a surprise. The ones that survive plan for it like it’s inevitable. Because it is.
Let me share what actually works, based on watching Michigan seasonal businesses succeed and fail for forty years.
The mistake that kills seasonal businesses
Most seasonal business owners think about money wrong. They treat busy season income like it’s regular monthly revenue. It’s not.
When your landscaping company makes $50,000 in July, that’s not July money. That’s July, August, September, October, November, December, January, and February money all rolled into one payment.
But most owners don’t see it that way. They see $50,000 and think “Great month! Time to buy that new truck.” Then December arrives and they’re scrambling to make payroll.
I tell seasonal business owners to think of their busy season like filling a water tank that has to last through a drought. You wouldn’t drain the tank in the first month – you’d ration it carefully to survive the entire dry spell.
That mindset shift – from monthly income to seasonal survival fund – separates businesses that thrive from businesses that barely hang on.
The 8 things that actually work
1. Build your winter war chest (and don’t touch it)
Every successful seasonal business I work with saves 40-60% of their busy season profits for slow season survival. Not 10%. Not 20%. Forty to sixty percent.
I know it hurts. You want to reinvest in equipment, take money out for yourself, pay down debt. But here’s the math: if you make $200,000 during busy season and your overhead is $15,000 monthly, you need $90,000 just to keep the lights on during six slow months.
Put this money in a separate account. Many of my clients use CDs that mature right when slow season starts. Makes it harder to spend summer money on summer toys.
The construction companies that survive Michigan winters consistently save half their summer profits. The ones that go broke every winter spend summer money like there’s no winter coming.
2. Find some winter money (but be realistic about it)
Don’t try to replace your busy season income during winter. That’s fantasy. Try to generate 20-30% of your winter expenses through off-season work.
I’ve seen Michigan contractors add snow removal, interior remodeling, equipment repair services. Tourism businesses do catering, equipment rental, consulting for new operators. Landscapers sell firewood, do Christmas decorating, run winter plant sales.
The key is using skills and equipment you already have. Don’t invest in whole new business lines. Find winter applications for summer capabilities.
One client runs a successful deck construction business in summer and switches to basement finishing in winter. Same carpentry skills, same crew, different location. Made the difference between laying off his guys every winter and keeping them year-round.
3. Make your overhead seasonal too
Why are you paying the same overhead in January that you pay in July? Makes no sense.
Renegotiate everything you can to match your seasonal income. Equipment leases that are higher during busy months, lower during slow months. Insurance payments concentrated when you have cash flow. Storage deals that reduce facility costs when you’re not using equipment.
I had a landscaping client paying $3,000 monthly for equipment leases year-round. We restructured it to $4,500 during busy season (April-October) and $1,000 during slow season (November-March). Same annual cost, but aligned with his cash flow.
Most vendors will work with you if you explain the seasonal nature of your business and demonstrate reliable busy season payments. But you have to ask during good times, not when you’re desperate.
4. Collect money like your winter depends on it (because it does)
August isn’t just the end of busy season – it’s your last chance to collect summer money before customers forget about you.
Require deposits on everything over $5,000. Bill immediately when work is done, not at month-end. Offer early payment discounts. Be aggressive about collections in September and October before customers shift their attention to other priorities.
I see too many seasonal businesses trying to collect from out-of-state tourists in January. Good luck with that. Get your money during busy season when customers are thinking about your services.
5. Turn winter into your relationship-building season
Winter is when you develop the vendor relationships that save you during next summer’s cash crunches.
When you have cash flow in July, pay vendors promptly. Build credit relationships. Negotiate emergency credit lines. Help vendors with their slow periods if they help with yours.
These relationships matter when you need materials in April but your cash flow hasn’t started yet. Vendors who trust you will extend terms. Vendors who don’t know you won’t.
6. Stretch your season at both ends
Small adjustments to your season timing can add months of revenue without changing your basic business.
Start earlier with prep services. End later with cleanup and winterization. Create shoulder season revenue that extends your cash flow window.
Many Michigan businesses add 1-2 months of revenue by systematically developing spring prep and fall transition services. That’s 20-30% more revenue from the same customer base.
7. Manage busy season cash like every dollar matters (because it does)
During busy season, every dollar of cash flow improvement multiplies your winter survival ability.
Invoice the day work is completed. Deposit checks daily. Use electronic payments. Negotiate faster terms with new customers.
Delay non-essential purchases until winter when you have time to research and negotiate. Lease equipment during busy season rather than buying. Use temporary help to avoid off-season payroll commitments.
The goal is maximizing cash accumulation during your brief window of revenue generation.
8. Plan for when things go wrong
Seasonal businesses face unique disasters. Early winter ending your season. Late spring delaying your start. Equipment failures during peak revenue periods. Economic downturns hitting discretionary spending.
Build contingency plans while you have options, not when you’re desperate. Line of credit established during good times. Emergency equipment funds. Key person insurance. Plans for rapid business model adjustments.
Michigan’s weather is unpredictable. Your business planning shouldn’t be.
Why seasonal businesses are different
Normal business advice doesn’t work for seasonal businesses because the timing is completely different.
Regular businesses have 30-60 day gaps between expenses and revenue. Seasonal businesses have 3-6 month gaps. Regular businesses can adjust monthly if problems develop. Seasonal businesses get one shot per year to generate most of their revenue.
Your winter financial statements look terrible even when your business is healthy. Lenders don’t understand this. Most business advisors don’t either.
The emotional stress is different too. Regular businesses spread financial pressure throughout the year. Seasonal business owners face intense pressure during short revenue windows, then months of worry about whether they saved enough.
The businesses that make it work
I’ve watched Michigan seasonal businesses succeed for decades. Here’s what the successful ones do differently:
They save aggressively during good times instead of spending like the money will keep coming. They develop modest off-season revenue streams using existing capabilities. They restructure fixed costs to match seasonal cash flow. They collect aggressively during busy season instead of chasing customers all winter.
Most importantly, they accept the reality of seasonal cash flow instead of fighting it. They plan around it, prepare for it, and use slow periods strategically for business improvement.
The ones that fail keep hoping next season will be different. Next season will be the same unless you change how you manage it.
What to do right now
If you’re heading into slow season unprepared, focus on immediate survival first. Calculate exactly how much cash you need to survive winter. Identify which expenses are truly essential. Contact vendors about payment arrangements. Develop emergency plans for off-season revenue.
If you’re planning for next busy season, commit to saving 40-50% of profits for winter survival. Negotiate seasonal terms with vendors. Develop off-season revenue streams. Build the relationships that will help when cash gets tight.
Seasonal business success requires discipline during good times to survive challenging times. The businesses that understand this thrive. The ones that don’t struggle every winter.
Need help with your seasonal planning?
After four decades of helping Michigan seasonal businesses survive and thrive, I know exactly what works and what doesn’t for different types of businesses.
If you’re struggling with seasonal cash flow or want to optimize your approach before next slow season hits, I offer free consultations to help business owners develop sustainable strategies.
(248) 957-0300
Everything we discuss stays confidential, and you’ll leave with a clear plan for managing your seasonal cash flow challenges. Some problems are easier to solve than you think.
