Managing Expenses During Seasonal Lulls
Seasonal sales are inevitable. If you own a seasonal business, you need a plan to keep up your momentum during seasonal lulls and take advantage of the booming business during high season. Whether you own a landscaping company with outdoor services or a storefront that ebbs and flows with holiday seasons, here are a few ways to manage your expenses during slow periods.
The first way to overcome the obstacle of a seasonal lull is to try to remove it completely. By adding additional products, services or income streams, you can balance your yearly income and create more sales during low seasons. Consider adding winterization services to your construction company or more evergreen products to your summer-themed or holiday-themed location. Of course, you’ll need to do careful market research to select the best products that fit your brand.
If you want to stay focused on your current products and services, carefully examine your finances to see how you can balance your cash flow. Hold back enough capital for payroll during seasonal lulls. This may mean waiting for routine maintenance or planning more effectively for tax season. By balancing your cash flow and increasing your working capital you can avoid running short during lean months.
Consider whether your seasonal business needs year-round staffing or more temporary workers. Contract employees can provide you with the improved workforce you need in the busy months, but can be laid off when your company slows down to save on payroll expenses. By hiring temporary employees, you can select workers who understand ahead of time and have planned to work only during busy times. This helps you avoid the uncomfortable task of laying off workers who weren’t expecting it.
Finally, your seasonal business may need to consider equipment leases, business loans, and cash advances to shore up finances. These flexible forms of financing are designed to give you the working capital you need for year-round payroll and unexpected maintenance. Whether your slow season lasts a few days or a few months, choose a program that offers you the funding you need. Lease your equipment for part of the year to save on operational costs during slow seasons. Consider leasing out your storefront or closing shop during slow months to save on rent payments. With a good credit score and financial history, your seasonal company can thrive year-round thanks to competitive, flexible financing for all your cash flow needs.
