How to Handle Inconsistent Revenue


Every business faces some peaks and valleys when it comes to their income.

There are always going to be those good months and bad months. Your industry and business will determine how large these jumps are.

If you have seasonal revenue, or receive payments in bulk orders, you know this frustration well.

So what can you do?

I recommend using a drip account.

A drip account takes the income you receive and spreads it out over multiple months, allowing the high and low months to become more level.

Let's say you own an event space that specializes in outdoor weddings. You're booked solid March-June & September-November, but due to weather, the summer and winter months are much slower.

In a business like this, it's often feast or famine, and it's becoming stressful. So you decide to use a drip account. Starting in March you take the income and divide it by 6. Instead of putting the full amount into your business account, you set it into a separate drip account. Then you a portion of it into your business account over the next 6 months.

Now your spring and summer have similar cash flow, regardless of the number of bookings.

So what do you think? Does a drip account make sense in your business?

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Profit First Coach

info@craigdacy.com |   (512)573-4387

Austin, TX

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