Every business has seasons. No, I don’t mean just weather-related ones. I mean the real, sometimes hidden, cash flow rhythms that quietly make or break your MSP business.
I get emails about seasonal slumps all the time, mostly from retail or actual seasonal businesses. But, whether you recognize it or not, seasonality is already shaping your revenue, workload, and stress levels, too. But here’s the catch: Most MSPs try to fight it, flatten it, or pretend it doesn’t exist. That’s a mistake.
Instead, lean in. It will ensure you don’t just survive the seasonal shifts, but use them as strategic leverage points for growth.
Let’s break it down.
Seasonality Isn’t the Enemy
Let me be clear: Seasonal fluctuation in client spend, project load, and ticket volume is normal. What crushes businesses isn’t the season, but being surprised by it.
I once coached an MSP owner who hit the same “unexpected” dip every August, every year. School was starting, clients were distracted, and decision-makers were on vacation. Revenue dipped. Stress spiked. And every year, it shocked him. You’d think it was a surprise party thrown by the calendar.
But when he finally acknowledged the pattern, he was able to prepare. He shifted marketing pushes to July. Front-loaded onboarding. And used August for team training and process improvements.
In other words, he turned a quiet season into a power season.
3 Rules for Navigating MSP Seasonality Like a Pro
Here are three smart moves for your slow season:
1. Forecast your rhythm, do not assume it!
Pull the last 24 months of revenue and categorize it by month. Look for patterns: When do clients sign? When do they pause? When do one-time projects surge (think security audits, server refreshes, budget season)?
Your numbers already know your season. Trust them.
Create a rolling 12-month cash flow projection. Don’t just forecast sales, be sure to include operating costs, staffing needs, and expected project spikes. You’ll immediately spot your “tight” vs. “flush” months. Knowing when to expect slowdowns lets you plan proactively instead of panicking.
2. Pre-allocate profit, even in the fat months.
In my book Profit First, I teach that cash should be allocated like Thanksgiving leftovers: in small, labeled containers. Same with seasonal revenue.
What should you do when a big quarterly contract comes in or Q1 looks extra strong? Allocate it into multiple accounts, remember? Owner’s Pay, Taxes, Operating Expenses, and most critically, Seasonal Buffer.
This buffer becomes your lifeline in leaner months. It gives you room to breathe, not beg. The most dangerous thing you can do during a good season is assume it will always be like that.
3. Use the slow season to invest, not hibernate.
Downtime isn’t dead time. It’s prime time.
Use it to audit internal processes. Upskill your team. Automate workflows. Rework your onboarding. Clean up client documentation. Re-market to dormant clients.
MSPs who win the fourth quarter usually earn it in the second.
Bottom Line
Seasonality isn’t a storm to ride out. It’s a rhythm to master. Forecast it, prepare for it, and use it to your advantage.
You don’t need to be surprised anymore. You just need to be smart.
And you are. You’ve got this!
-Mike
PS – My next book, The Money Habit, will be out in January. Preorder at your favorite bookseller. Want the intel sooner? Send an email to [email protected], and we’ll get you on the newsletter for weekly support now!
