Against All the Odds: 7 Tips to Stay In Business During Low Seasons
Like it or not; most small businesses are seasonal. And because you cannot mess with changing of seasons, many times you are forced to dance to the rhythm.
For instance, while Memorial Day may be the kickoff of summer season sales for most micro-businesses, for others, it is a low-sales period. So depending on the product you sell, the health of your small company may sometimes directly influenced by the seasons.
The most common retailers affected by seasons are those that offer travel services to tourist. During summer, B2B (business-to-business) and service companies may not receive as many orders as they do as their clients leave businesses for vacation.
So what’s the trick for micro-business survival offseason? Find out below.
- Augment your Financial Management
Don’t concentrate too much on profits, maintain your cash flow—that’s what small business rely on. If you experience higher sales in summer then begin setting aside in a reserve account a small portion of your income.
- Keep operation costs down
You also want to reduce expenses even as you monitor cash flow. If possible, employ seasonal workers rather than having them work for you permanently.
- Know your Commercial Funding Provider
It helps to keep good credit and set up a line of credit to rely on come the low seasons. You have a range of alternatives from credit cards to non-bank lenders, but these may charge you very high interest rates. However, keeping a solid line of credit a bank that’s reliable is a sure way to stay safe. You can also go for collateral-based loans as a last resort.
- Get ready for the high season
Take advantage of these slow periods to prepare for the rush. Work on production or purchase vital inventory. This is also the time to conduct repairs and maintenance; and train staff as well.
- Be accessible year-round
Always stay in touch as consumers don’t vaporize during offseason. Create a mailing list of all high-season clients and keep them updated using monthly email newsletters. That way, they will remember you when the time comes to buy.
- Come up with offseason discounts
When sales are low, the least you can do is to have money coming in to keep large profit margins. Offer eye-catching discounts to your offseason clients who buy in the offseason.
- Prepare counter-seasonal lines
Be diverse in what you offer so that your company remains a year-round firm. For instance, most lawn care firms turn to snow removal in winter. Merchants who sell Christmas gifts can deal with the same item but change the types of gift with the seasons.
The bottom line
It is imperative to prepare both psychologically and physically for these low seasons. And using these seven tips, you can be sure to have a busy offseason and more profitable high season.
Author Bio: As an account executive, Michael Hollis has funded millions by using collateral based loans solutions. His experience and extensive knowledge of the industry has made him a financial expert at First American Merchant.