Most businesses see fluctuations in demand based on changes in the season, but some are hit harder than others. If your small business is especially vulnerable to seasonal slumps, it’s important to do the most with the downtime. With a little tweaking and some other adjustments, it’s even possible to pick up extra business during the time of year you normally have trouble generating revenue.
Here are some essential tips and tricks for owners of seasonal business:
Strategize
The biggest hurdle for most seasonal business owners is managing the irregular cash flow. In other words, they have to devise a money management system that accounts for the lulls in sales during certain parts of the year. This might include strategic use of credit and fast cash loan choices during the off-season. Debts can be paid off in full with the arrival of peak season sales. Ideally, however, the business model accounts for the lull by diverting revenue to cover off-season costs and makes adjustments to lower these costs.
Reorganize
A slowing down of business is a good opportunity to take a step back and examine your operation. It provides the breathing room needed to make changes where they seem necessary. For instance, you might discover your sales on a certain day of the week are poor regardless of the season; downtime allows you to reorganize the business to be able to close down on that day when things pick up again.
Throttle
One of the most common ways seasonal businesses manage to get through the annual lull is by cutting back on staff and hours. Or, if you look at it the other way, small businesses are simply hiring more staff and keeping longer hours during peak demand season. By throttling your overhead to better match your gross income receipts, you avoid having your profits get absorbed by unnecessary payroll.
Rotate
Ted Drewes, a family-owned business in St. Louis, Missouri specializing in frozen custard, is understandably less popular when the weather gets cold. For most businesses selling frozen treats the winter means shuttering the doors and windows till spring, but not Ted Drewes. They sell Christmas trees, using their empty parking lot as a place to showcase their choicest evergreens. While not every business has the means and opportunity to rotate into something different during the off-season, it’s worth thinking about alternative ways to bring in revenue during the otherwise slow time of the year.
Generate
Another seasonally affected St. Louis-based business is Johnnie Brock’s Dungeon, specializing in costumes and Halloween decor. Rather than close their doors from November until the end of August, the company makes themselves the go-to place for other holidays and festivities. If you need some green gear for St. Patrick’s Day, patriotic displays for the Fourth of July, or decorations for one of the many other celebrations throughout the year, Johnnie Brock’s is the place to go. They generate business by finding purpose at times of the year in which costumes and ornaments are needed.
Whether it’s a bed and breakfast, wedding services, food trucks, or landscaping, there is no shortage of seasonally-affected businesses. For those who own a business subject to seasonal flux, it’s important to manage the imbalance as best as possible. Luckily there are a number of ways to achieve this goal.
