More than a quarter of small businesses experience large variations in their revenue throughout the year, according to research from Direct Line for Business.
In a survey of 500 senior decision-makers at small and medium-sized businesses in the UK, 26% said their revenue fluctuates wildly from month to month.
Around half (53%) reported an overall increase in their revenue over the past year, and 23% said they had employed more staff because of rapid expansion.
While increased growth can be a positive development for small businesses, frequent changes in demand and revenue can lead to cashflow problems.
Cashflow management can help businesses to deal with rapid changes in growth. This includes planning and forecasting, as well as improving their invoicing process to reduce late payments.
Jazz Gakhal, managing director at Direct Line for Business, said:
"Small company owners and operators are amongst the most resilient and adaptable business leaders in the UK.
"Fluctuating revenues and demand can be difficult to manage, but British SMEs continue to thrive."
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