|| For Freelancers & Entrepreneurs |
Businesses whose core products or services are ski rentals, Christmas trees, fireworks, or summer vacation houses for rent are all seasonal businesses. Many ventures that belong to this category have been successful but others unfortunately fail. This is because handling seasonal businesses is radically different from managing conventional ones. In order to make your seasonal business successful, be sure to consider the following tips:
1. Practice diligence in managing cash flows. In seasonal businesses, profits are reined in only during peak seasons and diligently spreading revenues to cover operational costs the whole year is of paramount importance. Always appropriate a comfortable budget for off-season operations. For seasonal businesses wherein this is simply not possible, maintaining excellent relationships with banks and other sources of credit is also critical. Doing so will help cover operational expenses during the lean season.
2. Allow reasonable flexibility in operations during peak seasons. Depending on consumer behavior, never scrimp on rendering extra hours to achieve (or exceed) targets. Seasonal businesses should be agile in order to convert every opportunity into a sale. Otherwise, it's not really a good tactic to hope for rain during dry season.
3. Find ways of making profits even during the lean season. Be creative in diversifying your core business to generate modest revenues while waiting for the big break. Lean seasons can also be used for intensive strategizing and preparations for the peak season. Broaden your sales network, train your staff, or develop new product concepts. There are many productive things that can be accomplished than just merely waiting for the rain to come.
