Tips for Managing Your Seasonal Business
Are you prepared for seasonal shifts in your business? Stay on track financially during the peak and off-peak seasons with these tips.
If you work in agriculture, construction, lawn care, swimming pool sales/maintenance, tourism or other seasonal businesses, you know what it takes to thrive and survive during peak and off-peak seasons. Managing a business with revenue that fluctuates seasonally can be much trickier than planning for steady year-round business. Being prepared for the busy and slow seasons can help your business get the most benefit from both.
5 Seasonal Business Strategies
Here are some strategies to keep your business on track financially all year long.
- Project cash flow for the entire year. Using annual cash flow projections can help you understand your needs throughout the entire year, both in cash-rich and cash-poor seasons. Use this information to plan a cash cushion that can be used during slow periods to help avoid heavy reliance on credit.
- Reduce expenditures during slow times. Consider ways you can reduce the costs of business when revenue is low. You may want to implement staff reductions, limit service offerings or even temporarily close the business during the offseason.
- Adjust pricing as appropriate. Many industries increase or decrease prices depending on demand, such as hotels that can have very different rates for the same room on different nights. Your customers may be willing to pay higher prices during peak times and you may entice or retain business by offering discounts when business is slow.
- Be prepared for the busy season. While you may have made adjustments to accommodate slow times, it’s also important to be prepared when the busy season returns. Ensure that you are adequately staffed, have enough inventory on hand and extend business hours as needed. Planning for these upticks in business during slower seasons can help prevent you from playing catch-up once the busy season begins.
- Look for alternative income sources. As a seasonal business, consider if there are related goods or services you can offer that can bring in revenue during the offseason. Being able to generate revenue during these months can help reduce the number of changes that must be made between seasons, particularly allowing you to retain employees and reduce the cost of training new employees each season.
Flexible Financing Options
An Amegy business banker can help your business with all your banking needs — whether it’s time to trim down or gear up. Find out how to close the gap with a business line of credit and other working capital solutions. Contact a business banker to learn how we can help your business through every season.
The information provided is presented for general informational purposes only and does not constitute tax, legal, or business advice. Any views expressed in this article may not necessarily be those of Amegy Bank. Amegy Bank is a division of Zions Bancorporation, N.A. Member FDIC.