Small businesses should use the quieter summer months to improve productivity and strengthen their operations, rather than viewing seasonal slowdowns solely as a threat to revenues, according to insolvency specialists at Liquidation Centre.

Many SMEs experience weaker trading between June and August as consumers take holidays and spending patterns shift, particularly businesses outside the travel and leisure sectors. The challenge can be especially acute for newer companies, where cashflow is often under greater pressure during seasonal downturns.

Richard Hunt, director at Liquidation Centre, said summer could present operational challenges beyond lower sales. Alongside changing consumer behaviour, businesses often have to manage reduced staffing levels as employees take annual leave, placing additional pressure on remaining teams.

He said careful planning and clear communication with staff could help businesses manage the period more effectively while reducing the risk of employee burnout.

The firm recommends that businesses use the quieter period to review trading performance and prepare for busier months later in the year. Analysing previous years' sales data can help identify recurring seasonal patterns, allowing companies to set more realistic forecasts and, where necessary, consider diversifying revenue streams.

The slower pace of trading can also provide an opportunity to invest in staff development. Training employees, improving professional skills and supporting career development may help businesses strengthen their workforce ahead of any increase in demand.

Operational reviews are another area where businesses can benefit from having additional capacity. Hunt said quieter periods offered an opportunity to assess internal processes, identify opportunities for automation and review customer-facing systems, including websites and digital services, that may be overlooked during busier trading periods.

He also warned against reducing marketing activity simply because demand softens during the summer. Maintaining customer engagement, he said, could help businesses remain visible when consumer spending recovers later in the year.

Hunt said seasonal fluctuations were a feature of many sectors and should be planned for where possible. However, he added that if weaker trading continued beyond the usual summer slowdown and showed no sign of improving, business owners should seek professional advice before cashflow pressures became more serious.