How do I explain my cabinet shop’s busy and slow months to a buyer?
Show monthly sales across several years next to your job pipeline, then explain what drives each peak and dip. Buyers worry less about slow months they understand, so back your story with order records and show how you cover costs through the quiet weeks.
Pull monthly sales and put the order book beside them. Mark the months that rise and fall and write a plain reason for each, such as new-home work, renovations, a large commercial job or a holiday slowdown. Be honest where a dip came from something the buyer should know about, like a lost contract.
Then show how the shop runs through the quiet weeks. Do you lay off crew, cut hours, move to maintenance and showroom work, or carry the payroll? Explain how deposits arrive and when final payments come in, because cash can lag work by a long way. A buyer wants to know whether cash flow holds through the slowest stretch.
Offer a way to test your account. Give access to quotes and signed jobs, and describe what is already booked for the months ahead. A buyer can ask their accountant to look at the monthly pattern and the working cash needed. Do not smooth the picture; an honest cycle is easier to trust. Include anything you have done to even out the cycle, such as service contracts, maintenance work or off-season promotions, and say whether it worked. If the busy months depend on a handful of large jobs, explain that plainly and show which ones are likely to repeat.
Key takeaways
- Chart monthly sales beside the job pipeline for several years.
- Give a plain reason for every peak and dip, including unwelcome ones.
- Show how payroll and bills are covered during the slowest weeks.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat is Cash Flow
- 03Business Development Bank of CanadaGovernmentHow to minimize negotiations when selling your business
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