If you have a seasonal business, you might struggle with cash-flow during the low season. Many seasonal business owners scramble to earn enough revenue during peak season to see them through the quiet months. There’s no need to panic. With a sound strategy in place and if you get the right funding, it can be smooth-sailing for your business all year round.
These 5 strategies can help you weather the low-season storm:
1. Extend your season or add products/services
Look for ways to create all-year-round appeal for your products and services. As an example, if you run an outdoor bar that’s packed during the summer season, you can make temporary changes for the colder months by adding outdoor covers, heaters and creating a cosy winter atmosphere. You could also add a winter menu, replacing summer cocktails with wintery boozy drinks. Another idea is to screen winter sports events in your bar to draw in the crowds.
2. Cut operational costs
Hire a flexible workforce so when business is slow, you can minimize payroll expenses. For example, if your restaurant is seasonal, hire temporary workers during peak season and keep a skeleton staff for the low season.
3. Maximize your low season
It’s a good idea to take advantage of the quiet season. With more time on your hands, you’ll be able to focus on growing your business. Many customer-facing businesses find that the quiet season is a good time to invest in renovating their stores or restructuring their businesses.
4. Generate off-season buzz with special promotions
You can encourage customers to buy your product/service off-season by offering a big off-season discount or promotion. Spread the word about your promotion via social media, email marketing and social advertising campaigns.
5. Get a business loan
Many growing businesses run low on cash-flow during low season. Take out an unsecured business loan or line of credit to use during low season to cover fixed costs.
Don’t see the low season as a hurdle for your business. Rather see it as an opportunity to get creative, diversify your offerings, appeal to other markets, and as a time to improve and expand your business.