Some businesses are able to attract a steady flow of customers all year round. For others, the demand is very much seasonal. A company that specializes in selling barbecues may get a lot of business in summer and hardly any business in winter. Similarly, a skiwear store is likely to get a lot of business in winter, but hardly any business in summer.
Seasonal businesses can be very profitable, but there needs to be a strategy in place for dealing with the dry periods. Below are a few ways in which you can survive as a seasonal business.
Diversify your services
One of the most common ways in which seasonal businesses survive is by diversifying their services. For example, a Christmas tree farm may also grow other plants and sell them throughout the year. This means that they don’t have to wait until November/December to see any revenue.
When diversifying your services, try to find a product or service that is still somewhat relevant to your brand. If you’re a ski store you could branch out into mountain climbing gear, however it might be a step too far to start selling beachwear or surfboards (unless you’re willing to completely rebrand your company).
Plan to earn and save
Some seasonal businesses survive simply by earning as much as they can in peak season and then living off these savings in the off-season. This requires having the diligence and self-control to set aside money while you’re earning – many companies make the mistake of seeing lots of money coming in and immediately wanting to spend it all. When earning and saving, you’ll need to budget carefully ahead and you’ll need to work like crazy during peak season in order to make as much revenue as you can.
Set up passive income streams
Another solution could be to start setting up passive income streams. These are ways of making money without having to actively work. An investment is often needed upfront, but after this you can let the money come in with minimal effort required.
There are lots of different ways to make a passive income. You could buy bitcoin with credit card or invest in some growth stocks. You could launch a blog or vlog and make some money through ad revenue. Alternatively, you could set up an online course and make money selling this. To make sure your passive income is a success, you’ll need to do a lot of research in advance, so bear this in mind.
Allow people to pay in instalments
Allowing people to pay in advance instalments or allowing people to pay back instalments afterwards could allow you to make a more steady return throughout the year. This could allow you to more easily budget from month to month rather than relying on several large sums of money during peak season.
Make out-of-season cutbacks
You can also financially survive as a seasonal business by making cutbacks during the off-season. For instance, many retailers that get most of their business around Christmas will hire temporary staff during these months and cut back to a leaner workforce for the rest of the year. You may similarly be able to cut back on inventory or reduce opening hours to cut costs.