Surviving Seasonality
Dec 23rd, 2007 by admin
A recent comment left by John D. regarding seasonal slow times, got my little thinking wheels turning. This is the perfect time of year to talk about surviving seasonal ups and downs. For many businesses, sales often peak right around the holidays. And for other businesses, it’s all about the holidays… think Christmas tree farms or wreath manufacturers.
If you operate a seasonal business, there are some things that you can do to prepare and survive the seasonal roller coaster:
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Work to create year-round market demand. Target a new market or offer a new product or service that is less dependent on holiday sales. For example, if your Christmas gift baskets are a hit, branch out and start offering a variety of everyday baskets such as those for birthdays, anniversaries or just because.
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Set aside a certain portion of your monthly sales to cash reserves - otherwise known as emergency or contingency funds. The goal here is not to rely on this avenue, yet have it available in case other best efforts fail. Plan ahead and make sure you set aside a sufficient amount to get you through the seasonal lows.
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Hit the international arena. With the Internet firmly in place, the world is at your fingertips. When it’s summer here, it’s winter somewhere else. So if you make handcrafted snowboards for a living and find that June and July are really slow for you, set up a Web site and start selling to all the other areas across the globe drenched in snow.
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Plan, plan, plan. This is critical for a seasonal business. Make sure your finances are in order and pinch pennies where you can. Budget carefully and don’t overspend.
