By Guest commentary Monday, August 18th, 2025

By Jason Bietz

Bank of America

It may still be summer, but for many entrepreneurs, the fall season is fast approaching and marks a key transition point that can set the tone for year-end performance. 

The fall is a crucial time for business owners to assess their finances and prepare to capitalize on upcoming opportunities and new cycles of customer engagement.

Some businesses may experience an increase in traffic during the fall and winter, particularly during the holiday season. For other businesses along the Central Coast, such as those in the agricultural and tourism industries, they may experience slower business influenced by temperature drops. 

Either way, the seasonal transition provides an opportunity to refine strategies to maximize the last part of the year. 

To ensure success, here are some tips to help businesses optimize cash flow, manage inventory, and make data-driven decisions.

SOLIDIFY CASH FLOW

Cash is king, and business owners need to meticulously manage and monitor its flow to finish the year strong. This fall, business owners can do so by:

• Forecasting budget: For businesses in certain sectors — think tourism and hospitality — cash flow is susceptible to feast-or-famine cycles. Peak summer and winter seasons may bring in a wave of customers and, therefore, substantial revenue, which leaves a potential lull during the fall months. Over-indexing on periods of high demand can lead to budgets that become hard to sustain during quiet periods. To shield the business from potential revenue dips, whether due to slower customer activity or seasonal demand shifts, incorporate these into your budget.
• Negotiating with suppliers: If there are any new suppliers you will be working with in the fall months or agreements up for renewal, plan to negotiate those vendor contracts as appropriate. Ask for extended payment terms, discounts for early payment, or volume discounts. If you can’t come to an agreement, don’t be afraid to shop around for better deals and partners.
• Accelerating receivables when possible: Look for ways to incentivize customers to make early payments. For example, you might offer a limited-time fall discount to customers who pay by a certain date. You can also stay on top of receivables by invoicing promptly, and don’t be afraid to follow up on late payments.
• Proactively exploring financing options: Don’t wait until you’re in a Q4 cash crunch to seek financing. If you don’t have an existing relationship with a bank or credit union, start the fall off right by establishing one. A line of credit can be a valuable safety net toward the end of the year. For example, Bank of America currently has over half a billion dollars in lending to Central Coast businesses, large and small.

OPTIMIZE YOUR INVENTORY FOR FALL DEMAND

Business owners should examine physical inventories and adjust as needed to streamline for the fall months. By strategically optimizing inventory, they can more confidently navigate fluctuating demand, avoid costly overstocks, and ensure customer needs are met. Some tactics to manage inventory include:

• Analyzing sales data and adjusting: Consult historical sales data to identify your best- and worst-selling products during the fall months. By understanding proven demand patterns, you’ll be able to make more informed decisions about which products to stock up on and which can be moved off the shelves.
• Implementing just-in-time inventory: If possible, work with suppliers to implement a just-in-time inventory system to receive items when you truly need them. This will help minimize storage costs and the risk of overstock, allowing you to capture sales opportunities while maintaining leaner operations.
• Considering seasonal promotions: As summer comes to an end, run promotions to clear out excess seasonal inventory and create more space for new fall arrivals.

THINK LIKE A CFO

Every season, business owners should use data to identify trends in customers’ behavior, forecast revenues, and plan ahead. Business owners can start by looking at the past three to five fall seasons and determining the specific revenue dips and expense spikes. From there, it is crucial to identify the why behind these numbers. Having a deep understanding of performance metrics will help entrepreneurs better prepare for the future. To do this, start by:

• Segmenting your customer base: Understand which customer segments are most active in the fall and tailor your offerings to them. Are locals more likely to spend, or are you reliant on tourists? These considerations can better inform marketing messaging and spending.
• Developing and tracking key performance indicators (KPIs): While overall revenue is important, you should be using a variety of metrics to measure the success of your business. Track KPIs like customer acquisition cost, average transaction value, and website traffic, which provide visibility into your current performance and enable you to identify growth pathways, pinpoint optimization opportunities, and accelerate your progress toward goals.

Owning a business is a rewarding but challenging vocation, and a crucial element of success lies in effectively managing fluctuating consumer needs and costs as the seasons change. By taking proactive steps through the fall months, you can set your business up to thrive in the final months of the year. 

• Jason Bietz is a senior vice president of Central Coast Business Banking at Bank of America.