"Control what you can." Prioritize Essentials: First things first, I pay essential expenses such as payroll and major supplies to maintain stable operations. Flexible Expenses: For non-essential expenses, I negotiate flexible terms of payment or delay when necessary to give us elbow room for adjustment in cash flow. Build a Buffer: In months of high sales, I put part of it into a reserve fund so we may be ready for lean months. Forecast Conservatively: I budget for conservative sales projections to avoid overcommitting on expenses and to move nimbly through our sales dips.

First you need to figure out what you can afford, based on a 12 month trailing average. Then, separate expenses into categories. As an example...Must have-Should have-Want to have-Don't need. Start with the first category and move through the categories, adding their monthly costs until you reach your budget limit.

To manage sales fluctuations and maintain steady cash flow, create a comprehensive budget, monitor cash flow, establish cash reserves, negotiate favorable payment terms with suppliers, manage costs by cutting non-essential expenses, and optimize billing processes. Regularly monitor cash flow to identify variances and adjust accordingly. Negotiate favorable payment terms with suppliers to extend payment timelines and save cash for essential expenses. Optimize billing processes and encourage early payments to expedite collections and maintain consistent cash inflow. Implementing these strategies will enhance financial stability during fluctuating sales periods.

1. Analyze: Review sales trends to identify essential expenses and patterns. 2. Cut: Reduce discretionary spending and non-essential costs during downturns. 3. Negotiate: Seek flexible payment terms with vendors to ease cash flow. 4. Save: Build reserves during peak periods to buffer future fluctuations.

Reach out to your suppliers honestly and proposals to maybe suspend or pay instalments can help you with runway funds. Ask before you might default , negotiate , agree and often a relationship can be maintained & costs reduced