Making it through the Off Season Financially

8 replies [Last post]
ChrisandShelley's picture
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04/13/2014

Does anyone have a specific rule of thumb for what they save for off season expenses? 

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Christopher and Shelley Smith, Innkeepers
The Wildflower Bed & Breakfast, Mountain View, AR

 

ChrisandShelley's picture
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04/13/2014

Thanks for the help. Our last 3 winters have not been an issue, but we're a little worried about this one. We'll be ok, but it's good to get some fresh ideas.

happykeeper's picture
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12/11/2008

We built up and retain 6 months operating capital. We thought we might have to tap that with all the drama being created on the national and world news about the volcano, but we have managed to pull through on the strength of some recurring business. Every area is so different, but any kind of business to business relationship that is available is one way to pick up shoulder season income. 

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Momma Smurf's picture
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12/06/2010

Keep collecting deposits for your future reservations!

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Highlands John's picture
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04/16/2010

yes

I charge 25% deposit, but  I know other businesses that charge 50% for that same reason, to basically flatten out their income over the year.

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Momma Smurf's picture
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12/06/2010

One night's stay here or 50%; whatever's larger.

Morticia's picture
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05/22/2008

Everything we don't spend in peak season gets put aside for off season! I try to exit the off season with a tidy sum still in the bank.

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Anon Inn's picture
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09/26/2011

I keep back the amount of taxes , insurance plus other large bills that hit in February.  That money is in a separate account

Other than that,  not really.  We do also have month to month rentals.   

JimBoone's picture
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12/18/2014

My answer is "not really". In the early years I knew we had a mortgage payment at the end of the year and had to watch the bank account to be sure there would be enough to cover the payment, perhaps it was an advantage that we started during a slow time and knew what to expect the next year.

Now after many years, any excess goes in saving account as it earns better interest and so that we know we have a cushion if needed which it often is needed, seems all the major bills, taxes and insurance arrive during the ending of the slow season when things are tightest.

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Jim & Maxine

 

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