Could your small business benefit from key takeaways on how to flourish during low season periods? You’re probably saying, “Oh yeah.” Then, keep reading because you’re about to discover important tips you can implement not only during low seasons but any time of the year.
If you prepare taxes, your low season occurs in the summer. That’s directly opposite of a seasonal business like a food truck parked at the beach and tourist areas reaping revenue in the summertime. As a small business owner, your business may struggle financially during its offseason. However, there’s no reason to hunker down and wait for your next high season. You can sail through this period unscathed by making a few tweaks in your small business operation.
15 Tips For Your Small Business To Survive During Your Low Season
- Take stock of your inventory. A slow season doesn’t mean you run your low season, small business without access to sustainable income. Identify which products you have the most of and run a sale during spring holidays like Easter, Mother’s Day, Father’s Day, and Memorial Day to free up money for business operations.
- Make regular deposits to your business savings account. Each month of the year, make it a regular practice to stockpile money you can use during your business’s offseason to carry you through to your busy season.
- Track sales and forecast trends. CRM (Customer Relationship Management) software helps sales teams manage customer leads, build marketing campaigns, and stay connected with customers and apprised of market trends. By using the software, you have historical data about your small business to help you make strategic business decisions.
- Hire seasonal part-time help. A business needs full-time staff during its busiest season and less help during a low season. College students and retirees usually have more time available to work during your slower period when there’s less money to go around.
- Manage cash flow. Analyzing where your money goes lets you know where to make changes. You can monitor utilities, rent, and other overhead costs or evaluate whether you continue to offer credit to slow-paying customers. In addition to tracking expenses, you can create a cash flow statement to project how much working capital you need in case you need to get a loan.
- Keep an eye on production costs and labor costs. The cost of doing business fluctuates. So, it’s a good idea to review throughout the year how much you spend on labor, machinery, raw materials, and other production costs in general. You can eliminate any wasteful expenditures that slowly suck the life out of your business. You want to scale down business costs without affecting quality to price your products and make the highest profit.
- Expand the services you offer customers. For example, if you prepare taxes, provide bookkeeping and payroll services the rest of the year. A tax preparer could also offer tax education seminars during their business’s offseason. If you remove snow during colder months, you can purchase attachments for the same equipment to install trees, prepare the soil, or provide other landscaping services in warm weather. By extending your operating season, you decrease the length of your offseason.
- Market your business differently. Don’t allow slow sales to damper enthusiasm. Initiate a marketing campaign where you offer deep discounts and coupons only during low season periods. Develop a loyalty program for return customers by offering complementary products in exchange for customer reviews you can post on your website to garner interest.
- Revitalize your client list. Attract new clients and stay in touch with old clients. Whether you prefer to use newsletters, social media platforms, or connect with customers via computers and smartphones, consistently reach out to old and new clients. They are the lifeblood of your small business and are happier customers when you engage with them regularly.
- Limit offseason revenue to online sales. You can save money on overhead costs by closing your storefront to the public. Allow employees to work remotely during this time to manage online sales. You’ll save money on air conditioning, cleaning services, utilities, and other costs.
- Get a small business loan. At Camino Financial, we know the importance of getting the right loan at the right time. A cushion of cash helps during lean times when working capital isn’t as plentiful. See the information below about how to apply for a loan, whether it’s a microloan or a small business loan.
- Prepare for the busy season. During downtimes, employees can cross train or you can make upgrades to equipment or vehicles. Set aside time and money to attend training seminars or make sure your inventory is adequate to meet upcoming demand.
- Work with other local businesses and your Chamber of Commerce. Along with other small business owners, you can come up with ways to bring tourists to your town all year. A concerted effort reaps rewards for everyone.
- Develop passive income streams. You’re already an expert at what you do so why not capitalize on your skills. Write e-books, instructional guides and create other digital products to generate income.
- Change your business hours. As long as your employees and customers are onboard, have shorter offseason hours and longer hours during your peak season. This should help balance costs and increased and decreased revenue that varies per season.
These Actionable Tips Provide Tangible Benefits For Your Business
Every time you check off one of these tips as done, you’re well on your way to achieving financial success. Like Author, Alan Lakein, said, “Planning is bringing the future into the present so you can do something about it now.” As you tackle each tip, you make gradual progress toward your goal of having sufficient amounts of cash all year long. Whether you run an offseason sale, manage your cash flow differently, or add services to your business, all these efforts add up to—LOW SEASON SURVIVAL.
Applying For a Loan Is Easy
One of the steps listed above is getting a loan. Sometimes a loan is the best step you can take even when you’ve implemented most of the other tips. Applying for a loan with Camino Financial is easy and straightforward. We understand the challenges associated with the low season for many businesses, but we think that wouldn’t refrain your company from growing. That’s why we are proud of our motto: No Business Left Behind. Our products are designed to provide the greatest amount of benefits with the least amount of restrictions. You can know within minutes whether you prequalify for a loan and have funds deposited electronically to your account within 2-10 days. If a loan seems to be the best option not only to survive inevitable low seasons but also to guarantee your success, we’re ready to help!