5 Ways To Build A Steadier Income For Your Business

Having an irregular income can make budgeting hard and can get you into all kinds of financial issues. By taking steps to create a steadier income for your business, you can plan ahead more easily and take on more commitments without worrying whether you’ll make the next month. Below are just a few different ways in which you can build a steadier income. 

Market heavily during dry periods

The more heavily you market your company, the more customers you’re likely to attract. This is why it’s important to market heavily during dry periods. Of course, marketing costs money, which is why it’s important to leave some money aside during periods when business is doing well. This money can then be pumped into more elaborate marketing campaigns once customers start to dwindle in order to help business pick up again. 

Provide off-season discounts

Some businesses get more revenue during certain seasons. For example, an ice cream shop is likely to get more business in the summer. Be prepared to slash prices out of season in order to attract more customers. This does mean less revenue per purchase, however more customers ultimately means more revenue overall (providing discounts aren’t too big). This strategy can also be applied to days where you may not get as much business (for example, some bars offer discounted drinks on a monday). 

Offer subscriptions

Subscription payments can guarantee a more regular income from month to month. Consider if there is a way in which you can get customers to sign up to a monthly payment and consider what perks this will provide. For example, some companies create membership schemes that entitle customers to exclusive privileges (like discounts, unique products or early access to services) in exchange for a small subscription fee. Other companies meanwhile offer extended warranties that entitle customers to free repairs or returns providing they pay an ongoing monthly fee. There are payment processing services that can help you set up subscription billing. Compare other companies to see what subscription fees they are charging so that you can price your subscription fees accordingly. 

Consider payment plans

If you sell high value products like pianos or offer expensive one-off services like car wraps, consider whether it could benefit you to offer your own payment plans. Giving customers the option to pay for purchases in instalments over several months could allow money to come in at a more regular rate - which could be useful if you often have dry periods of no sales. Just be wary that you will have to chase up payments if customers decide to stop paying. There are companies that can help you set up payment plans, as well as chasing up customers for you. 

Learn to build savings

Some companies that are seasonal simply set aside some of their revenue into a savings account. Money can then be taken out of this savings account during periods of no revenue in order to provide you and any employees with a wage without having to rely on loans. This is useful for companies like ski equipment retailers or beach resort hotels who may find that their income is concentrated in a particular period of the year.