This content was created by Peter Vander Wall. This content was uploaded by Peter Vander Wall. This is a YouTube video titled "Seasonal Income is Killing Your Cashflow" discussing strategies for managing seasonal revenue in businesses, particularly in the accounting sector, by establishing a minimum floor of monthly recurring revenue to cover costs during off-peak seasons.
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There's nothing inherently wrong with having seasonal revenue in your business as long as you can plan it out properly, right? In the accounting world, a lot of tax firms get basically like 50 to 75% of their revenue from like January to April and then they have all summer and kind of into the fall where they're not really making any money. But as long as you plan properly and you say, okay, we're going to stack up the checking account and we're going to run off our savings the next six months, then that's totally fine. And that's a legitimate way to build a business. But I think there's a smarter play here, which is to get kind of this like minimum floor of monthly recurring revenue. So maybe in the county world like that would be like a bookkeeping service and you get that up to the level where it covers all of your hard costs for the business and ideally at least your take home salary. So if you have 20k a month in costs, you get up to 20k, mrr. Then all the money you're making during the good season is kind of stacking up in your checking account and you're not even having to dip into that necessarily during those down months.