What should I be doing NOW to prepare for a slow month 3 months away?
You know January is always slow. It is October right now. What should you do today to make that slow month less painful? Here's a data-driven preparation plan.
The short answer
How do you prepare? Three things: build a cash buffer during your strong months, front-load marketing spend to generate pipeline that closes during the slow period, and accelerate collections on outstanding invoices now so you enter the slow month with maximum cash on hand.
Predictable slow months should never surprise you
If January is always your worst month, and you know this from last year's data, there is no excuse for being caught off guard. The business that prepares for January in October has a plan. The business that reacts to January in January has a panic.
Most owners know their slow months intuitively but never build an action plan around them. They hope this year will be different. It usually is not. The seasonal pattern is one of the most predictable things about your business, which makes it one of the most plannable.
Preparation is not complicated. It is three concrete actions, done 2-3 months in advance, that transform a slow month from a cash crisis into a managed dip.
The three preparation levers for slow months
- Cash buffer. Set aside extra cash during your strong months to cover the gap. If your slow month typically has $20K less revenue, you need at least that much extra in reserves.
- Pipeline building. Increase marketing spend 2-3 months before the slow period so deals close during it. Leads generated in October become revenue in January.
- Collections acceleration. Chase outstanding invoices aggressively before the slow month. Enter it with as much collected cash as possible.
How to build a slow-month preparation plan step by step
- 1Quantify the expected revenue dip
In QuickBooks or Xero, pull your P&L for the slow month last year. Compare it to the surrounding months. If the slow month was $20K below your average, plan for a similar drop this year.
- 2Calculate the cash buffer you need
Take your monthly fixed expenses (payroll, rent, insurance, software) and subtract the slow month's expected revenue. That gap is the minimum cash buffer. Add 20% for safety.
- 3Check your current cash reserves
Run a Balance Sheet in your accounting software. Compare your current bank balance to the buffer you need. If there is a shortfall, you have 2-3 months to close it.
- 4Plan marketing spend to fill the slow month's pipeline
Check your average sales cycle length in your CRM. If it takes 60 days to close a deal, you need to generate leads 2 months before the slow month. Increase ad spend or outbound activity during that window.
- 5Accelerate collections now
In QuickBooks, run Accounts Receivable Aging. In Xero, check Aged Receivables. Follow up on everything over 30 days immediately. Offer early payment discounts if needed. Enter the slow month with minimal outstanding receivables.
Total time: about 45 minutes to build the plan. Then ongoing execution over 2-3 months leading up to the slow period.
Start planning 3 months before your weakest month
If January is your worst month, start the preparation plan in October. Set the cash buffer target, adjust marketing spend in November, and push collections hard in December. By the time January arrives, the worst-case scenario is a manageable dip instead of a cash crisis.
Or get forward-looking alerts in your monthly report
Bottomline knows your seasonal pattern. Three months before a historically slow period, it alerts you and suggests specific preparation actions based on your current cash, pipeline, and receivables.
You do not have to remember to check. Bottomline alerts you 3 months in advance with specific numbers: how much cash you need, how much you have, and what to do about the gap. Predictable problems deserve planned solutions.