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5 Proven Year-Round Profitability Tips for Seasonal Businesses

Rahul Maingi

By admin, November 28, 2018

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Running a business is a daunting task. But, running a seasonal business in the off-season is even more challenging. Unlike businesses who make money year-round, you see orders pile up only during your peak season.

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Unfortunately, sales stop when the peak season rolls past, but bills don’t. Apart from paying your overhead and accounts payable, you also need to take care of your fixed costs such as rent, salaries, property tax, insurance and utilities. So, what should you do to survive during the off-season?

Here are five proven tips that will help you get year-round profitability for your seasonal business.

1) Utilize the Off-Season Time for Marketing

Many seasonal business owners refrain from spending money during the off-season. It should be a downtime for your business but not for your marketing campaign. Utilize this time by investing your money in marketing to make a direct impact on your customers. Stay ahead of competition by working on your awareness campaigns for your business before the peak season. Create engagement on social media by encouraging your existing and potential customers to give their ideas for your products, participate in a contest about your services or suggest a concept or theme for your upcoming seasonal opening. Reward a chosen contributor with attractive offers and deals. Instead of keeping quiet during the off-season like your competitors, follow this approach to reach out to your target audience and convert it into sales during the peak season.

2) Understand and Manage Your Expenses

Managing your cash flow when the business is on the downside is necessary for the survival of your company. Review your business plan and financial strategies regularly before and after the peak season. Look for supplemental income generation activities to create a balance. One of the best bets is to minimize your necessary monthly expenses and eliminate unnecessary costs.

3) Look for Other Opportunities

If your business has died down for this season in your country, it’s doesn’t mean it has to halt doing business anywhere else in the world. Identify markets and opportunities for distribution in other locations to transform your off-season in your hometown to successful season somewhere else. Take advantage of online platforms and reach out to customers in other geographical reasons who need your products or services. Even if it does not last long, it can help you ensure profitability during the off-season.

4) Diversify Your Services

To be profitable year-round, try to diversify your services by using the same skills, people and equipment you have for your core business. For example, if you offer lawn care services offering mowing, raking and mulching services from spring to fall, switch to snow and ice removal in the off-season. Also, if you run a frozen dessert store, which doesn’t do well during the colder months, can be diversified by adding café or bakery featuring gourmet hot chocolate to get additional revenue in summer. This will help you reduce overhead costs while marketing your new business to your current client base. Additionally, if you and your team perform a variety of tasks in all seasons, you’ll be able to create more value of your business in the market by meeting a number of client needs.

5) Offer Off-Season Discounts

When the business is going through tough time, it’s more important to have money coming in than to maintain a large profit margin. To ensure cash inflow, offer your products or services at attractive discounts to customers who buy in the off-season. For instance, if you sell winter wear and accessories, give customers deep summer discounts with the option of ‘Buy 1 Get 1 Free’ or 40%+20% Off’.

Your business may be seasonal, but your profit shouldn’t be. Leave your worries of surviving in the off-season behind and put the above-mentioned tips into action to ensure profitability all year round. Let us know how fruitful it was by leaving your comments below. Once your business is right on track during the down season, get in touch with us to assist you with our bookkeeping, payroll, accounts payable, accounts receivable and data entry services.

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