Owning a Seasonal Business? 4 Tips for Year-Round Profitability
| 4 minutes read
Have you ever wondered how to pull up seasonal businesses to increase sales? Not sure? You’re in the right place.
In this article, we’ll offer tips on increasing seasonal products demand and managing Seasonal Businesses and ideas on keeping a seasonal business in customers’ minds year-round. This article will have a lot of excitement to clear the clouds of doubts in seasonal industries and Owning a Seasonal Business could be so much fun and profitable.
When Memorial Day hits in the US or when summer arrives globally, people excitedly expect their favorite ice cream shop to be open. Candle lovers purchase their favorite fall scents like warm apple pie and sweet cinnamon pumpkin as the leaves change. Once snowflakes begin to cover the ground, beer enthusiasts look forward to their famous Christmas Ale. Although these are all seasonal events and businesses, the question arises. Are these are the loss-making businesses? The answer is No.
Also Read: Investment Guide: When to Sell and When to Hold – Unboxing Startups
If you have a seasonal business and still you’re unable to encash, kindly read till the end because we will cover a lot more than our title says.
Keep reading to know more about how to keep your seasonal business profitable all year?
How to Successfully Run Your Seasonal Business
1. Use the Downtime Effectively
Using your off-season months as an extended vacation may be tempting, but doing this won’t help your business flourish. Instead, brainstorm seasonal business ideas, update your marketing collateral and website and stay active on social media to keep your followers updated. Create a buzz and talk about next year’s plan, respond to your followers, and leave them with a message like ‘Something Going to be Special’ this kind of tagline will generate curiosity, and your brand will be in trend. You should be more creative in downtime and think about the following season.
2. Manage Cash Flow Responsibly
Although all small businesses should follow a business plan and budget, seasonal companies especially have to stick with this. Have a clear idea before the season where you want to reach financially, and at the end of the season, you can analyze how much you have achieved your goal. And what needs to be done.
Since your window for sales is shorter than a business that is open for 12 months, ensure that you or someone on your team is actively managing cash flow.
3. Stay Connected
It’s not only important to continue communication with customers, but your employees should also hear from you too! Instead of trying to hire new employees every quarter, save time by keeping in touch with your best staff members. You’ll have people working for you who have shown their professionalism, and you won’t have to interview new candidates leading up to the new season.
4. Get Ready Early
At the end of the season, chances are you’re tired and ready for a break. While you may have to take down equipment or interior decorations, depending on your situation, you can keep yourself organized and leave clear instructions for the following year. You’ll thank yourself later and will be able to start the season off on a high note!
How Seasonal Products Boost Sales?
1. Develop a Dedicated Following.
When an item becomes popular and is only available during a particular season, it often develops a dedicated following.
The Starbucks Pumpkin Spice Latte is an example of a product with an enthusiastic, devoted following. Those customers who crave the product will be watching and waiting for it to hit the shelves. They’ll also probably be posting their first one on social media, which means free marketing that helps build brand awareness.
2. Build Excitement in the Off-Season.
By marketing a not yet available product, you will build excitement for that product and raise awareness for your business. For example, you can promote like, Come soon and in the background, you can show a glimpse of the product.
For example, try marketing the new edition snowboard during the summer months as “coming soon” to encourage your summer customers to come back in the winter.
3. Develop Strong Brand Associations.
When you think of Easter, what kinds of products come to mind? Of course, you probably think of chocolate bunnies, colorful eggs, and marshmallow Peeps®.
Maybe no one in your household even likes Peeps, but you still buy a box of them in the spring. They may sit on the shelf until summer, but you still bought them as a memento of the Easter season.
Brands associate themselves with certain holidays, and you can do the same by offering seasonal products.
How to Keep Your Seasonal Business Profitable All Year?
If you run a seasonal business, such as an ice cream shop, it can be challenging to figure out how to make enough revenue in the summer to support you in the off-season still.
1. Analyze and systematically manage your off-season expenses.
Managing a Seasonal Business owner needs to understand cash flow and how to manage expenses, but it is essential for the seasonal business owner.
Analyze your off-season expenses and once you have a good grip of the costs, look for ways to minimize them. For instance, consider reducing staff in the off-season.
When hiring for the summer, inform prospective employees that the position is purely seasonal, so there’s no hostility when it comes time to close for the season.
If your business stays open all year but experiences a quiet winter, consider reducing your hours to save on hourly wage and energy costs. You can also communicate with your vendors and suppliers to try to work out a limited contract in those months when you don’t need as much inventory on hand.
2. Use the downtime to strategize for the busy season.
Capitalize on the few months you have with decreased traffic by planning for the next season.
You can use results and reports from the previous season to analyze what changes you may need to make, what worked, and what didn’t. Then, with this information, create a strategy and train employees, so they’re ready to hit the ground running when business picks up again.
You can also use this time to set goals and profit targets for next season.
Suprotik Sinha is the Content Writer with Synkrama Technologies. He writes about technologies and startups in the global enterprise space. An animal lover, Suprotik, is a postgraduate from Symbiosis Institute of Mass Communication (SIMC) Pune. He carries 6+ years of experience in Content Writing, and he also worked in mainstream broadcast media, where he worked as a Journalist with Ibn7 ( now known as News18 India) and Zee Media in Mumbai.