If you’re the owner of a seasonal business, you’ll know that life in the quieter periods can be tough. Without that steady stream of income, it can be difficult to fund growth and achieve your goals while it may leave you overly reliant on the boom months to ensure you keep your head above water.
This is a challenge that affects a wide variety of businesses – from farms and travel companies to hotels and those who offer outdoor activities. So, what can you do to address the issue? How can you increase profitability in the off-season and make that jump from surviving to thriving? Read on to find out more.
Explore alternative revenue streams
Is there a way that you can diversify your offering? If you can expand the scope of your business to provide customers with a service or product that is not determined by the time of year, it could help you drive additional income during those quieter periods. And who knows, if this extra branch becomes a huge success, it could open up a range of new opportunities for you further down the line.
Review your business plan
There’s no doubt that a good business plan is central to your success. It should provide the fundamental framework around which your venture is built, including contingencies for when things don’t quite go as you’d hoped. But even if you accounted for seasonality when you put your plan together, it doesn’t mean you can’t go back and reassess.
There’s nothing to stop you from reviewing your strategy and seeing where you can make tweaks or changes. You may be able to identify where you can make savings during the busier periods – thus boosting your cash reserves ahead of the quieter months.
Consider external financial support
Another option is to apply for funding. However, a standard bank loan may not solve the problem, as you will be saddled with fixed repayments that you may not be able to afford once the off-season rolls around again. A business cash advance could offer a viable solution because the repayments are taken as a proportion of your card takings. So, if you have a busier month you repay more, and if things are quieter, you won’t pay back as much. The overall cost is agreed at the start and there are no late repayment fees.
Launch a marketing campaign
There are many different ways you can do this – via social media, email, your website, posters and flyers plus word of mouth. You could tie your campaign into a major offer or discount, incentivising your customers to take advantage of reduced rates. This marketing drive may require an initial outlay, but if channelled in the right areas to the right audiences, you could soon start to see a return on your investment.
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