What do you do when your small business stops generating revenue, even for just a couple of weeks? There are so many small business owners who find this question quite difficult to answer, particularly when they work in traditionally seasonal industries such as retail business and food business.
Every small business has productivity wise good and bad months; however some small businesses specifically in these industries must completely depend on the “good months” to finance a complete year of business operations.
For small business owners considering how to fulfill this undertaking face-to-face, listed here are some recommendations on how to supervise a seasonal sales cycle.
- Depend On Seasonal & Part-Time Workers
No small business owner wants to let go of an effective and trustworthy worker, however sometimes it’s very important to keep the business running. That is particularly true for seasonal small businesses such as seafront restaurants and clothing stores that cater to specific seasons.
There may not be sufficient work to go around throughout the slow season to substantiate a full-size staff, therefore keep this factor in your mind when you’re hiring workers on the board. You might be more contented hiring part-timers to get through the busy season, then allowing them to go when sales decline, as opposed to extending full-time offers to highly qualified employees.
- Reducing Your Hours Of Operation
A small business needs to be open in an effort to make revenue – just pronouncing that may appear unreasonable. But in case you run a pizza shop and get a couple of customers a day throughout the winter months, you might be better off staying open only some hours a day during that time of the year, or closing the shop altogether.
Every day that you open your store, you have to pay for the electricity, gas, and salaries of your workers. In case you are running a food service business, you risk having to dispose of the spoiled food because you don’t have sufficient customers to buy it. There’s no rocket science for understanding the finest time to be open, therefore try experimenting with some schedule variations until you reconcile on one that functions for your customers and you.
- Plan For Saving
It is very difficult for a seasonal small business to make profits at some stage in the slow or quiet months. That means taking a loss in the course of the slow or off season and having to try financial savings, or getting a business loan to balance the business cash flow.
Even though it is quite difficult to predict how big a loss it will be, small businesses can help their conditions by way of proactively saving as much as possible. That may imply foregoing the purchase of new business equipment or losing the ability to bring in an expert new worker.
- Explore Additional Revenue Streams
In case you are running a customer-driven small business and you don’t have any customers, you may need to consider alternative revenue sources. For instance, a restaurant business that depends on the tourist season to attract customers could pivot by means of turning into a catering or event planning business. You could additionally expand your marketing efforts so that when the weather turns cold or warm, your business will be the place to be.
Predicting future revenues is a challenge for any small business; however it’s mainly an important hurdle for businesses that perform in traditionally seasonal industries. Small businesses struggling with their seasonal sales cycle should consider these instructions when they plan for 2017.