Here is the transcript of the video:
👋 Hello and welcome to J’poster Complet ! My name is Claire, and today I would like us to talk together about the profitability of a seasonal rental . On this, I would like us to talk about three subjects.
The first subject, finally, what are we talking about when we talk about profitability ? What is profitability? Well, finally, there is one point which is very important and which is a prerequisite to working on all of this. It’s about clearly distinguishing turnover from profitability. Turnover is what we charge, it's the wealth we actually create, but profitability is what we earn. And it is just as important to look at your turnover to monitor your performance, but at the same time, it is also important to detach yourself from it as soon as you want to talk about profitability. Because we will have to take into account the expenses and the turnover absolutely does not take them into account. Turnover is what we sell. So, this is a point that is really important: take these costs into account, look at your costs even beyond the turnover that you can generate.
The second point, and it is a point which is very specific to seasonal rental , is seasonality . Seasonality is a challenge in terms of profitability, but it is absolutely not profitable. You just have to know how to take this into account because indeed, seasonal rentals can be very seasonal with periods of high performance and much lower periods. And for that, you must always look at your profitability over the year. It's actually OK when you have a seasonal activity. It's totally OK to have unprofitable months. But conversely, you will also have to have very profitable months. And it's also important when we make investment projects, recruitment projects or anything not to base ourselves on the current month, to base ourselves on annual profitability. And I think in particular, we can have very high profitability on certain types of rental, at least during peak periods, for example, summer. If we make a financial arbitration over this period, it will not necessarily be appropriate for winter periods which can be much lower. So that really needs to be taken into account. Afterwards, it's completely OK to say to yourself, “I'm making this investment because I know that during my very strong periods, I want to be able to cover, cover even during the low months. » But you just have to know. You just have to take it into account.
And the last point I wanted to talk to you about profitability is cash flow . You really, really have to take care of your cash flow, and that is very important. We always say cash out as late as possible. No, as soon as possible. I say the opposite: cash in as early as possible and pay out as late as possible. And that’s a lever that’s still quite important for taking care of your cash flow. Then, there are other levers like paying in installments . That's something we don't necessarily think about, but we can get into the habit of asking it. Because paying in installments also takes care of your cash flow, especially during low season periods.
And the last point, well, you have to keep cash flow for weak months. And that's a bit like what I told you at the beginning, that is to say that overinvesting in the strong months also prevents the ability to keep cash flow for the weaker ones. And we must not forget that.
And I wanted to talk to you about one last point that I almost forgot, which is unpaid . And that is extremely important. It is absolutely necessary to follow up on these unpaid invoices because it is not so much about having sent an invoice, but if it is not paid, well ultimately, it will create absolutely no profitability, and even worse. So you have to follow up on your unpaid debts, follow up with your customers who are subject to non-payment and not hesitate to call on a collection company. These are also companies which specialize in invoice collection, which have perfect knowledge of the management of reminders. And on that, I digress, it is very important to have contracts. It really is an essential support, if only in commercial relations. In fact, beyond unpaid debt, but it becomes essential in the event of unpaid debt. And so that's a tip that's really important not to forget: follow up on your unpaid debts to take care of your turnover, but rather your profitability.
There you go, I hope you were interested. Do not hesitate if you have any questions to ask them in the comments, we will answer you with great pleasure. 🌟