A Successful Seasonal Business Does 3 Things
Smart business decisions are required to effectively manage and operate a seasonal business…
Warm weather has arrived and with that comes an influx of businesses who have been in hibernation for the winter months. While most seasonal businesses operate year-round, the bulk of their business happens during select months when the weather allows, and the demand is high. While business might only be high certain times of the year, creating a successful seasonal business means you’re utilizing your downtime as effectively as possible. We listed out a few strategies to ensure year-round success.
Seasonal business owners can choose how to operate their business, but they will be thankful that they implemented at least one or more of these techniques into their business plan.
• Create alternative business options for the slower part of the year
• Save a standard percentage of earnings during your busy time of year to cover costs for the slower season
• Hire additional employees during the busier time of year for seasonal work
• Innovate your marketing by creating off-season demand through business partnerships or moving business online
• Close business during months where the operation is slow
• Develop banking relationships that allow for flexibility with the ebb and flow of your business
No one can predict the future, but as the saying goes, “history repeats itself.” Utilize this theory to your benefit by using past trends and data to anticipate and prepare for the months ahead.
• Develop monthly sales, spending and cash-flow forecasts
• Include anticipated monthly growth
• Review forecasts on a monthly (or weekly) basis to make adjustments to your predictions based on what is actually happening
• Make adjustments for expenditure on a regular basis
• Plan budgets to ensure you aren’t over-extending your expenditure
Utilize the slow months.
Whether you are an open and shut business where you have a specific start and end date or a business that stays open running on the cash-flow made in a particular season, making sure you are preparing for your busiest time of year is crucial.
• Develop and evaluate business plans
• Perform scheduled maintenance on equipment
• Make improvements to business with a few updates (i.e. fresh coat of paint, updated equipment)
• Research and ramp up your marketing efforts to maximize customer base potential