Many local businesses, especially those dependent on the tourist trade, suffer peaks and troughs when the numbers of visitors drop off. For ski resorts, that off season is the summer, but for most seasonal businesses, winter is the quiet period. You don’t have to be a tourist-dependent business to be affected by the seasons; other businesses also feel the effects, for example gardening and construction slow down over winter, too.
The inevitable fluctuations in income that you encounter when you run a small business or work for yourself are problematic even when you are not in a seasonally affected sector, so it’s essential that you learn how to manage the ups and downs you’ll encounter when you’re in a business that is based around the climate.
Economizing
Are you keeping a close eye on all your outgoings, or do they just tick along in the background? You could be spending hundreds or even thousands of dollars a year unnecessarily if you aren’t checking your costs on a regular basis. For instance, have you taken the time to compare the price you’re paying for your business gas per kwh at Utility Bidder? Could your reduce waste disposal bills by being more environmentally conscious, using fewer materials and reusing and recycling more? Small savings across multiple areas can add up to a considerable sum that can help offset periods of reduced income.
Scaling down
If your business is exclusively seasonal, you may get so little trade outside your peak operating period that it’s simply uneconomical to continue trading outside that peak season. You may be better off having a defined opening period that capitalizes on the trade while it’s there, and either shut up shop and take it easy during the off-season, or do an entirely different job.
Diversifying
Diversification is essential for many small businesses, because they can’t make enough money by sticking to their core trade. You might wish to add product ranges to your store that attract a different type of customer, or expand the services you provide in a service-based business.
Think about how you could offer more to the local population if you normally target the tourist trade; is there a gap in the local market that you could fill? It can lead to some slightly odd combinations, but it’s a proven way of maintaining your income year round.
Combining forces
Are there opportunities to work with other businesses owners and organizations, perhaps pooling your resources to create a new service for the local community?
For example, you could set up a Christmas Fair, a kind of celebratory, festive occasion that gives local businesses a chance to boost their income and market themselves to the residents of the area and show them how your business can fulfill their needs outside the tourist season.
You also need to make sure that you have a well-managed budget that takes the seasonal variations into account, and getting into the habit of putting a set amount each month into a separate account to cover the quieter periods is essential. You can have a successful seasonal business, providing you allow for the effects seasonality has on your income.
