The summer is rolling and so are the shifts in consumer spending. While most larger companies and retailers have the advantage of selling products year round shifting their product sales to accommodate holiday spending and consumer needs. Small businesses with seasonal offerings tend to struggle in the low season with sales shortfalls, limited staff, and shrinking profits.
While consumer spending may fluctuate with the seasons, business profits that rise and fall can become a thing of past allowing for recurring revenue year round.
Simply incorporating new business ideas, marketing a different revenue driver or adding on to your existing business model could diversify revenue and add to the profit margins very quickly. Click To Tweet
Here are 3 strategies to use to expand your seasonal business:
- Offer add-ons– The key here is to offer services based on your current skill level and abilities to boost revenue. For example, an ice cream shop may boost revenues by offering party packages, joint ventures with schools or nonprofits, or even setting up at carnivals, parks, or small venues to keep revenues high once the summer season comes to a close. Add-ons are typically services that can be provided with because the supplies, employees, and product are readily available. The goal is not to move away from your primary revenue driver but simply create new opportunities for resources.
- Promote your product – This isn’t the time to sit back and remain silent until the next season rolls around, this is actually the time to dig in and remain consistent in promotions in your business. Remember out of sight, out of mind. Consumers are always distracted, keeping that in mind this would be an excellent time to promote upcoming sales or even next season’s specials. As a landscaper during the winter you can promote spring and summer specials to consumers and even have then pre-pay. This will not only keep you top of mind in the coming months it will give you a revenue stream to enlarge your marketing efforts and give you a steady cashflow during the low months.
- Develop a profit plan for the year– Don’t time is the right time to get a grip on your business. Spend these days, weeks, months wisely by building a solid plan that allows you to have a positive cash flow throughout the entirety of the year. Analyze customer sales, find the dips, lows, and high sales and create a plan of action for the coming year. This will allow you to see exactly how much inventory you need and how to plan cash padding for your business during your low seasons.
In addition to these strategies entrepreneurs can offer consulting and speaking services to others for a fee to help bring in additional cash flow.
While seasonal businesses may face challenges there are many ways to transition the business into a year round profit center. Offering more opportunities to consumers will not only grow your bottom line but increase your visibility and marketability in the off season.