Dear Pam,

For the past 3 years I have had a landscaping company and during the warm months I make pretty good money. The problem is during the slow months I can barely make enough to keep food on the table! I have tried to put money up during the busier months so that it will last me but it seems that since I get behind on everything when it’s cold, as soon as it’s warm I end up spending my money trying to play catch up! I’m not sure what to do. Any suggestions would be appreciated!

Signed, Not Enough

Dear Not Enough,

You have a problem that’s typically shared by a lot of business owners who have seasonal businesses. Before you can figure out where your money problems lie, you need to know where they start. The first thing I would advise you to do, if you have not already done so, is to create a budget. It will take you some time but go back for the last two years and determine what your monthly expenses run you - both business and personal. Once you’ve determined your budget go back and determine your income for that same period. This will allow you to determine if what you make is enough to take care of your monthly expenses for the entire year.

If you do make enough money then you simply are not handling it properly. Determine where the waste is taking place and nip it in the bud. Literally! My suggestion is that you pay up bills such as your mortgage, car, utilities, etc. in advance. Also, my suggestion to any business owner is to pay yourself first. Before you pay your bills or anything else put up 10% of your gross earnings in some type of money market or savings account. This would be what I call “mad money” meaning that the only reason you would need to touch it is if things got really bad or you just lost your mind!

If you do not make enough money then you may simply need to increase your output during the warmer months, take on a job or start a second business during the winter months. Anything you can do to supplement your income. Again, put up 10% of whatever you do as a cushion to be used in the case of an emergency. You may also want to consider changing your lifestyle and decreasing some of your expenses.

As a self employed individual, it’s very important to keep to a very tight budget. In the end you must remember that what you make and how you spend may not balance out. Spend your money wisely and continue to watch your business flourish!  

To Your Success!

Pam Lawhorne

Pam Lawhorne is a business strategist and marketing consultant with over a decade of experience in small business development, sales, marketing and management.

She empowers individuals with the skills that are necessary to successfully launch, expand or increase sales for their business.

For more information on starting your own business please order her new book “From Minimum Wage To Getting Paid - How To Become A Successful Entrepreneur With No Money, No Education Or No Experience!”

Back to "The Everyday Entrepreneur"

 Find Out More About Us   or Tell A Friend About Us 

© 2007 Pam Lawhorne. All Rights Reserved.