Small business lender Prospa says the upcoming holiday period may be a good time for advisers to pause, take stock and plan for the year ahead, as January is often the most stressful time of the year for cash flow.
Prospa general manager Adrienne Church says a slowdown in business and late invoice payments can often lead to cash flow stresses over the holidays, and research conducted by Prospa in Australia showed that only 16% of small businesses experience January as a busy time of year.
Recent REINZ research also showed that real estate-related professions are particularly badly affected by stress as a result of market fluctuations, which can mean things are either super busy or very quiet.
Prospa is a lender catering specifically to small businesses, and Church says that since many advisers are small businesses themselves, they should also be checking in with their own operations and assessing any potential funding needs.
“As small business owners, advisers are often working long and unpredictable hours,” Church said.
“They’re trying to manage so many different responsibilities that it can be tough to really think about building the business.”
“The quieter January period can be a welcome, well-deserved break and a great opportunity to pause and reflect on what the business needs to grow in the next year,” she continued. “However, it can also be somewhat stressful because operating costs for the most part stay the same but there’s less revenue coming in and payments are later than usual.”
Church says that in order to set themselves up for success, advisers should plan for any potential cash flow squeezes during late December and January. She noted that it can be challenging to manage bills, wages and rent if you’re not prepared for a slow month, and planning ahead can help prevent you from starting your year “on the back foot.”
“Advisers are a vital part of our business – they have been from day one – and supporting their growth and success is a core part of our mission at Prospa,” Church concluded. “We’re currently supporting partners with an adviser-only offer throughout December to help them boost cash flow and seize new opportunities, and I encourage advisers to get in touch for more info.”