Transcript excerpt of a Mike Andes YouTube video advising small businesses on handling off-season cash flow volatility. Emphasizes the problem of irregular large installment revenues versus steady recurring income, and recommends service packages and warranties (e.g., leaf guard, service/cleaning contracts) to create predictable recurring revenue that covers expenses during slow months.
Fact that we can have 40 grand the next month, have 110 grand the next month, have 50 grand is just hard for cash flow. Yep. After everything's invoiced out, we should be at zero. Especially when we're trying from a liquidity perspective, have one month worth of revenue. That means you basically have to have 100 grand in the bank just to be able to float by. This winter has definitely been the worst winner by far. The opportunity with installs is you can grow very quickly. 600,000amillion, you're going for one like you can grow fast. The recurring is gonna be the slow trickle. The goal though is to be able to cover your expenses with your recurring. It's after that one time is installed. Say, hey, we do the walkthrough. Everything looks great. You show them pictures, whatever it is. Hey, we have a couple options. We can do leaf guard so you never have to clean these things out again. We can have the service package. And by the way, if you get either of these, we warranty these forever. So if there's ever a leak, we come back. And then the service packages, we're gonna come and clean out their gutters. So. So middle of your off season, we're going to come early spring, we're going to adjust if there's any damages and if there's any leaks throughout the rest of the year. It's all covered, taken care of.
