September can be a tricky month for small retailers, especially during the pandemic. With back-to-school shopping done but the rush of holiday shopping not yet in full force, it can be challenging to maintain healthy, or enough, cash flow.
Retail consultant Bob Phibbs (The Retail Doctor) addressed the challenge in a recent blog.
A few highlights from the blog:
- Drop back-to-school promotions in mid-September. Most customers are done shopping for those items by now.
- Order from fewer vendors. A huge cash outlay with uncertain sales looming could do long-term damage to your cash flow.
- Do away with layaway plans. It only delays the income you need coming in during the lull between back-to-school and the upcoming holiday rush.
Keep your payroll under control. You’ve gotten used to doing more with less during the pandemic. It’s tempting to hire for the sales you anticipate but over hiring will hurt cash flow.