A seasonal business is one that is patronized by customers only during a particular period of the year - A season. After this period, such a business might have very low or no patronage at all. You might wonder how a person would make such a decision, but check around you, and you will see several seasonal businesses in operation. If a seasonal business owner puts good strategies in place, he can put measures in place to cover up for the period of low / no patronage, and remain productive. This is what this post is centered on.
As it has been said earlier, there are several kinds of seasonal businesses, which all together are categorized as the seasonal industry.
A seasonal industry refers to a group of companies related by their common business activities that earn the majority of their income during a fairly small number of weeks or months each calendar year. - Investopedia
The length of active period for one of such businesses may differ from that of another. It could be as little as a few weeks in the year, or a couple of months. Examples of seasonal businesses include vacation destinations or recreational facilities, halloween costume products, Christmas decor retailers, tax preparation, and so on. Owners of these kinds of businesses must have means of making income during their off-peak periods in the year.
Adopt Means of Saving Money
This is one of the most important steps to be taken, and it applies to both the peak period of business, as well as the off-peak period.
During the active period of business, there is often huge sales or patronage for these business owners that they sometimes get overwhelmed with demands for goods or services. This huge patronage will automatically lead to a considerably huge income too. While accounts are looking so rosy at that time, the business owner must remember the period of drought, so as to save as much as possible to cater for that time.
Saving money during off-peak periods will relate to reducing staff strength, or their working hours. You might also consider letting out, or sharing your business outlet with another business owner during that period. These measures help you to spend less, and make some income, no matter how little it may be. In the case of staff strength, you will probably consider having regular staff, who will be around all year, then other contract / casual staff members who will only be needed during the period of dominant activity.
Find Ways to Bring in Revenue All Year Round
That you are into a seasonal business does not stop you from venturing into other business lines, especially those that are closely related to your main business. This ensures that business keeps running, at least at a lower level than usual, and revenue is being made.
For example, a company that is into production of halloween costumes might consider producing toys/dolls, or design of colorful wears for children. This may be on a very low scale, but it helps business to keep on running. An umbrella production company will also need to consider other means of income generation during summer or dry seasons.
Diversification of Investments
For people in seasonal businesses, there is also a need to invest in other lines of business for continuity of income generation. For example, let's consider a landlord who has only a couple of flats, which earn him some income only at a particular period in the year. He will need to invest his tenants' rent into another micro business, so that he has something to live on till the another rent is paid.
Consider Reaching Clients in Other Regions
In some seasonal businesses, the peak and off-peak periods vary from one region to another. A seasonal business owner will therefore need to study the market and know when people in different regions need his product or services, so that he can channel his services to the willing clients beyond the peak period in his region of establishment.
It is not a wrong decision to venture into a seasonal business, but while considering this idea, ensure that you put measures in place to make you relevant all year round.
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