Many companies experience peaks and troughs when it comes to sales. If you run a seasonal business, it can be difficult to stay on an even keel, but it is possible with careful planning. If you experience surges in sales followed by periods of downtime, here are some tips to help stabilize your seasonal business.
Budgeting is incredibly beneficial for every business, but it’s particularly important if you don’t have a steady income throughout the year. If you expect to experience a sudden influx of sales before Christmas or summer is your time to shine, budgeting can help you survive the barren periods and spread your income to cover costs you’ll encounter on a continual basis. With a budget in place, you can reduce the risk of overspending and running into cash flow issues and ensure you use the money you take in during your busiest periods wisely. If you don’t have experience in managing the books or you don’t have an accounts team, this is an area you may wish to consider outsourcing.
Make sure you’re ready to hit your peak
If you go through peaks and troughs, it’s imperative that you make the most of your window of opportunity. You want to make as much money and take as many orders as possible during that busy period, so ensure that you’re ready and raring to go. If you sell products, make sure you’ve got enough stock, and you have sufficient manpower to package, dispatch and deliver those orders. If you have a seasonal business, using temporary staff is an excellent option and you may wish to consider making use of programs like staffing software from Prim. By taking this route, you can ensure that you’ve got the staff you need without committing to long-term contracts. If you are employing extra members of staff, make sure they have the relevant training before things go up a notch. You don’t want to lose out due to poor service or delays. It’s also important to step up your marketing campaign in advance of the anticipated peak. It’s no good advertising excursions for summer in August or Christmas presents in the middle of December.
Reduce costs during quiet times
Keeping a business going during quieter times can be tough, and it’s beneficial to try and reduce costs as much as possible. Using temporary staff and opting for short-term rental contracts for business premises can help you lower your running costs out of season. If you only need a store for the holidays or an office for the summer months, don’t sign up to a year-long agreement. There’s no point in paying for space that you’re not going to use.
Do you own a seasonal business? If so, you may have to learn to take the rough with the smooth. It can be tricky to find a balance, but it is possible to succeed if you’re ready to make hay while the sun shines and lower your operational costs when things go quiet. Hopefully, this guide will help you navigate your way through the peaks and troughs with minimal stress.