7 Tips For Indie Retailers To Maximize Your Cash Flow In September

By Bob Phibbs

cash flow retailers september


Retailers have always been at the mercy of the yearly calendar. As the seasons change, the climate of the market changes, which can mean that your cash flow changes drastically from month to month.

That means the potential for less cash in your wallet.

You are likely to see spikes in your capital at some points throughout the year—particularly as the holiday season draws near and people are preparing to celebrate the stretch from Halloween to Christmas with friends and family.

Depending on the specific type of store you run, you will face different challenges throughout the year. For example if you sell snow blowers and you don't have a cold winter, your Q1 of the following year will be lean as sales did not materialize and no matter of promotions will get them off your hand.

Likewise a garden center with a rainy spring, an apparel retailer with a hotter summer than usual, a Halloween store with the holiday coming mid-week - all of these events will impact retailers' cash flow differently.

September, however, is a particularly difficult time. As the summer draws to a close but the holidays are still a bit off, shopping slows. Fortunately, there are ways that you can maximize your financials in September by addressing common issues that arise during this time.

Now is a good time to really look at your open-to-buy and clear out slow sellers.

Get Over Back to School

Many stores fall into the temptation of clinging to the back to school shopping season late into September by pushing items such as school supplies, items to outfit college dorms, and late summer-appropriate clothing. Back to School sales and promotions should have ended by the last week of August. The shoulder month of September is when you should be preparing your store for the rest of the fall and for the holidays.

Frequent Ordering

As the holiday shopping season approaches it will be crucial that your store is well stocked with the most popular items. Making huge orders during September, however, can be devastating to your bottom line. Instead, make small periodic orders so that you are building up your stock without a tremendous cash outlay.

Avoid Slow Billing and Payments

September is not the time for extended flexible credit or offering layaway. Merchants should be insisting on timely payments from all customers.


If you find yourself dealing with low cash flow during September try bartering instead of paying other small businesses with cash. Determine what you can offer them that they may need in exchange for services that they can provide for you. This can help you to get through the tense month a little stronger. I once bartered an entire fire sprinkler upgrade for a retailer using gift certificates.

Reduce Your Payroll

You are likely going to need extra help during the holidays, but with the slower shopping month of September upon you it can be extremely helpful to your assets to cut down on the number of employees' hours that they work. With school starting up, this often is easier than it first seems.

To learn more about your financials, checkout this post on the six reports you must review.

Cut Down on Inventory

The shopping season is coming, but fewer people shop during September as they too prepare for the expenses of the coming gifting season. Offering a slimmer, less diversified inventory during this month will help to reduce the money you spend on your stock so you can prepare for the heavy ordering to come. Consider doing a physical inventory at the end of the month to get accurate counts for re-orders.

Focus on Specific Wholesalers

You are much more likely to spend more money if you work with several different suppliers. During the slim month of September limit your ordering to one or two strong wholesalers or suppliers so you can consolidate shipping charges and take advantage of combination offers.

A lot of retailers don't give a second thought to their cash flow - until it is lacking. Use these six tips to manage your cash flow and manage your financials in an orderly way.

See also, How To Improve Your Cash Flow By Balancing Your Merchandise

In Sum

There's no magic to proper cash flow, it does take work. The one thing you must concentrate on is to drive sales in your stores; helping shoppers to become customers.

It is singularly the most important thing you can do is to train your crew how to sell - not product knowledge. The more you focus on your own four walls and how you can create an exceptional experience, the more you will be able to raise your sales and profits.

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