Small businesses that cater to a seasonal need do not have to suffer financially during off-peak periods.

That is the advice of business counselor Gray Poehler, who writes in the Naples Daily News that having a sound financial plan – including a 12-month cash flow forecast and a cash reserve for the off-season – is the key to minimising uncertainty and fluctuations for cyclical firms.

He advises entrepreneurs to make sure they start off on the right foot with lenders, as good credit and a strong relationship with banks is vital if small business owners need to renegotiate the terms of their loan.

Mr Poehler points borrowers in the direction of a range of short-term loans offered by the Small Business Administration, called CAPlines.

Those who want to take advantage of this type of financing will be evaluated for eligibility based on size, the type of firm and how they plan to use the proceeds. The seasonal loans provide advances against anticipated inventory and can be revolving or non-revolving.

Finally, on the positive side, months of less intense activity could provide the perfect time for carrying out administrative tasks such as updating a web site or making needed repairs to equipment, Mr Poehler suggests.