On a grander scale, the business world has experienced quite a growth spurt in recent years, with more entrepreneurs, franchises, as well as startups showing up for their slice of the profit pie. However, no matter which industry you come from, certain businesses also have a tendency to experience ups and downs in client interest, which means you might be running into issues for streamlining your finances during those slower periods of operation.
These businesses, also known as seasonal businesses, can still manage to not merely survive but truly flourish even during those slow-paced months of the year. In order for that to happen, you’ll need a proper strategy, some flexibility to adjust if you notice any changes, and of course, ample knowledge of your customers’ needs to know when and how you can afford to manage your finances to make the most of your slower seasons. Let’s take a look at the five key ways in which you can achieve this and how you can help grow your business despite regular periods of stagnation.
Track your annual financial fluctuations
Unless you’re at the very beginning of your business journey, you already know what oscillations you can expect for each month of the year. The predictable patterns that reflect the need of your customers should shape how you form your strategy, but even more importantly, which KPIs you need to focus on in order to improve your earnings during the slow season. No plan is possible, especially not a realistic one, without the data to support it. So, use the information that you already have, and keep collecting data for future predictions.
That way, you can spot vendors that might not be so flexible with their contracts, if you can find alternative partners who offer discounts during the slower season, and how you can inspire more interest among your customers during the slow months of each year. Monitor and track your finances all year so that you can finetune your efforts for future strategies.
Cut down on seasonal costs
Business owners are always prepared to invest more in their operations when you know profit is just around the corner. For example, if your clients seek your services mostly during summer, or your sales teams have their meetups with clients during spring, these are the times you know will require an injection of funds to operate to your full capacity.
What happens in the off-season times, when many of your employees have half the amount of work and the interest is sliced in half as well? Start with the commodities you can reduce, such as certain marketing efforts, your corporate fleet, and the like. As an example, if you can choose cheap car hire contracts and reduce the number of vehicles in use during the slower months, you can save thousands of dollars to fund other efforts. Introducing flexible systems within your business means ensuring solvency all year round.
Outsource what you can
We’ve already mentioned your employees, and if you know for a fact that a portion of your team will sit idly for a few months with half as many responsibilities on their plate, why not consider a more flexible arrangement? For example, working with freelancers on a project basis is a great way to outsource some of your in-house needs to experts and pay for the amount of work done.
Then again, introducing flexible work hours and remote work options can help you reduce costs in the office so that you can move your operations into the digital realm and ditch renting an office space altogether. This also comes with other perks, including your ability to sell physical assets such as computers, printers, storage units, and the like, all of which is unnecessary if your teams work from home.
Introduce a flexible billing system
With so much you can do internally to take the pressure off, there are equally many opportunities in how you define your client relationships to reduce your off-season costs. For example, not all clients and vendors will enjoy the same method of paying and the same tempo. If you’re able to offer a bi-monthly payment cycle, installments, or even discounts for early-bird payments, you can achieve better cash flow for your business during the entire year.
In addition to perks and benefits for clients who pay upfront or in time, you can also introduce some penalties for those who have the tendency to be late with their payments and thus wreak havoc on your cash flow.
Add other sources of income
Do you own your office? If you already know that winter is a no-go for your business, why not rent out your property to earn some passive income over time? This is a simple, yet a great way to make the most of what you have, even when you know that your peak season is over.
Then again, you can also diversify your services to focus on something you can offer specifically during those periods of lower interest. It doesn’t have to be anything disruptive for your business model, but simply an addition to your service or product range that will fit the needs of your audience during a different time of year.
Budgeting will always pose a challenge no matter how experienced you may be. Use these tips to help your business thrive, and you will soon find your own perfect strategy to make the most of every day your business is up and running – even in the slow months.