Managing Fluctuating Revenue – Building Financial Resilience

Fluctuating revenue is common, especially in hospitality. The key to managing cash flow is mastering profit distribution.

Key Expenses to Consider:

1. Business Costs – List all fixed monthly expenses required to run your business.

2. Growth Goals – Set SMART goals and allocate a monthly amount towards business growth.

3. Personal Budget – Estimate your monthly needs, factoring in both fixed and variable expenses. A benchmark could be the market salary for a similar role.

How to Manage Profits Efficiently:

At the end of each month, divide your profits into three pots:
? Business Account – Cover one month’s fixed costs.
? Growth Savings – Deposit into relevant savings accounts/ISAs.
? Personal Account – Allocate your living expenses.

Any surplus should go into a Business Cash Reserve, which acts as a buffer during months with low or zero revenue. This system ensures financial stability and peace of mind, allowing you to focus on business growth rather than income fluctuations.

Make money your ally!

?? Book a free Cash Flow Clarity Call with me and let’s map out a plan for your business - https://calendly.com/founder-gh46/freecall

Written by
Mrudula Muralidharan
Founder & Finance Coach, Million Goals