7 tips for summer survival for your small business
Traditionally Memorial Day is the kickoff of the summer season, and for many small businesses, that means an uptick in customers through the doors. But, unfortunately, others aren't so lucky; customers don't come in, and clients don't call. So no matter whether you sell popsicles or candy canes, surfboards, or snowboards, the health of your business can be related directly to the season.
A remarkable number of companies are seasonal businesses. The most obvious are those retail and service businesses in tourist destinations. However, even those not located on the beach or slopes can be impacted by the ebb and flow of seasonal cash flow. For example, many B2B companies see their orders dry up during the summer as clients disappear on vacation.
So, how does a small business survive the offseason? Or how do you make the most of your best season?
Manage Your Cash Flow
Small businesses live or die on cash, not profits. The most critical step for the long-term survival of a seasonal business is managing cash flow. If summer is your high season, start setting aside a percentage of income in a reserve account.
Become friends with your bank
When cash flow is low, you'll need to work on getting establish a line of credit. Yes, you can use credit cards, but with the interest rate you'll face, it might cause more trouble than it's worth. So, establishing a solid line of credit with your bank is your best bet.
Prepare for your busy season
Use this time to get ready for your seasonal rush. Produce goods, order inventory, things that you don't have time to do once orders start flooding in. Train your employees in sales and customer service to ensure your holiday rush doesn't end up costing you money.
Develop counter-seasonal lines
Work to diversify your offerings and transform your company into a year-round business. If you're a landscaper, consider adding snow removal during the winter season. If your business specializes in Christmas items, look to add a summer line such as picnic supplies.
Reduce Costs
Managing cash flow is essential, but you also need to manage your costs, especially during a slow season. Work to reduce expenses as much as possible. If you employ workers, consider making them seasonal rather than permanent. Consider implementing summer hours, so you can cut down on office and employee expenses while being celebrated as a hero for letting your staff have some time off.
Stay in contact with customers
Your customers don’t vaporize during the offseason. Develop a mailing list of your high-season customers and create a monthly email newsletter. Keep your name in front of them, so they remember you when they’re ready to buy. And if yours is a summer-heavy business in a tourist area, now’s the time to mail past customers “Welcome Back” discount coupons or offers.
Offer Discounts during your off period
In slow times, it’s more important to have money coming in than to maintain large profit margins. Offer attractive discounts to customers who buy in the offseason. For instance, if you sell patio furniture, give customers deep winter discounts with the option of taking delivery in spring or summer.
As you can see, preparing your business for the holiday shopping season during any year is no small task. This year, more people will be ordering online, and whether they’re picking up items in-store or having them shipped, it’s important for the experience to be smooth from start to finish.
Take holiday readiness with a step-by-step approach, and before you know it, you’ll be on your way to welcoming jolly shoppers with ease.
