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.

"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.

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

You don’t focus on expenses, you focus on how to generate more sales & growth from the current situation. Additionally, you focus on how to decrease friction by improving conversions across your marketing, sales process, and follow up. Most businesses go wrong thinking it’s time to hit the chopping block, when in reality it’s time to become creative and improve the efficiency of the business.

Start by listing all your expenses and identify which ones are essential for keeping your business running—like rent, utilities, and employee salaries. Cut back non-essential costs where possible. Create a cash flow forecast to help you anticipate future financial needs and spot potential shortfalls. Consider negotiating better payment terms with your suppliers to ease immediate cash outflows. Keeping an emergency fund can also provide a buffer against sudden drops in sales. review and adjust your budget regularly.

First, make sure you know the totals of fixed expenses and what their percentage is of total revenue, each month, quarter, and year. Fixed expenses generally must be paid first so continue to operate. Then list by priority which variable expenses must be paid to continue business operations. Then after you have been able to pay fixed expenses and variable expenses, begin to list which marketing expenses will help even out sales.

It depends on the type of business. If I planned events I would rely on email cause it's free, and push to secure a deposit early enough so that I could book the venue without taking a loss. If I was a local service company and payroll is my biggest expense, I would pay employees on a draw and have that gets taken out of future bonuses. But the biggest thing for any business is being aware of the fact that there are always going to be fluctuations and set up your budget allowing for the ebb and flow of the market.

Credit card Line of credit Redraw facility Not easy to juggle the formula is never obvious and you should celebrate the wins and gains!