5 Ways DMV Contractors Can Keep Cash Flow Steady During the Slow Season
If you’ve been in the contracting business long enough, you know that your busiest months can make you feel unstoppable — until the slow season hits. Whether you’re an HVAC technician, a pool builder, or a general contractor, slower months in DC, Maryland, and Virginia can test your cash flow discipline.
The good news? You don’t have to just “wait it out.” There are practical, local strategies you can use to keep money moving year-round.
1. Break the Feast-or-Famine Cycle with Progress Billing
Many contractors still send one large invoice at project completion. The problem? You’re left covering material and labor costs out of pocket for weeks.
Try progress billing instead — divide payments into milestones (for example: 30% deposit, 40% mid-project, 30% at completion).
For DMV contractors, where large home improvement projects are common, progress billing ensures you get paid throughout the job instead of waiting until the end.
2. Add Maintenance Plans or Seasonal Services
Your busiest season might be summer for pools or winter for heating — but in your slower months, small recurring services can keep things steady.
HVAC companies in Maryland often sell bi-annual service plans, while pool companies in Virginia offer off-season inspections or chemical balance checks. These services don’t just bring income — they help you retain customers for next season.
3. Negotiate Better Payment Terms with Suppliers
Your suppliers may be more flexible than you think. Many contractors don’t realize that bulk orders or long-term relationships can qualify for extended payment terms — sometimes 45 or even 60 days.
That means you can complete the job and get paid before your supplier invoice is due. It’s one of the simplest ways to improve cash flow without borrowing money.
4. Create a Slow-Season Savings Buffer
Even with solid planning, every contracting business faces the occasional slump. Aim to set aside two to three months of operating expenses during your busy season.
If you’re an LLC or S-Corp in the DMV, consider keeping that cash in a business savings account or short-term CD — you’ll earn a bit of interest while keeping the funds liquid.
5. Time Major Purchases with Tax Planning in Mind
Thinking about buying new equipment or vehicles? Strategize timing with your accountant.
Under Section 179 of the IRS Code, you may be able to deduct the full purchase price of qualifying business equipment in the same year you buy it. But the best time depends on your projected taxable income — so planning it with your CPA can maximize both deductions and cash flow.
Bottom Line
Cash flow isn’t just about surviving the slow season — it’s about building a business that thrives all year.
At Shahbaz Associates CPAs, we help DMV contractors analyze revenue cycles, build reserves, and take advantage of tax timing strategies so your business stays strong even when the phones get quiet.