4 Management Tips for a Seasonal Business Owner

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4 Management Tips for a Seasonal Business Owner

While most businesses have periods of fluctuation and slowdowns, business owners running seasonal businesses in particular have added concerns when it comes to making it successfully through their off-seasons. Whether the business closes or just slows down, there are a few key tips to keep in mind in order to ensure the continuing life of the business.

New Business? Don't be Jaded by Initial Success
New business owners should heed the potential and likelihood for fluctuation even as they enjoy their initial success. When businesses are fresh and new, they tend to flourish steadily for a while. Then, once they become more established, the clientele tends to mellow out, meaning that the constant influx of customers becomes a more moderate flow. While business may still remain somewhat steady, there's a good chance that the sales won't be as impressive as they were at the very beginning. This is when the business owner must realize that frivolous spending, while tempting, is not something to practice. Budgets should still be adhered to, especially if the business expects a seasonal slowdown. Business owners must be keen enough to prepare themselves for such things in order to keep the business alive.

Plan at Least Six Months in Advance
For all business owners, especially those with seasonal businesses, it is imperative to plan ahead by a minimum of six months to ensure financial success. By carefully calculating spending for this extended period of time, including salary payments, rent payments and product costs, the business owner can do as much as possible to prevent deficits caused by overspending or lack of saving in the more productive months. Once the business has been up and running for a while, the business owner will be able to track income trends at different points throughout the year, making it easier to plan ahead. In the meantime, new businesses can research trends of similar companies, gauging potential highs and lows.

Staffing With Temporary Employees Vs. Returning Employees
Seasonal business owners run into this question quite often: Does it make more sense to hire temporary employees, or should employees be encouraged to return when business picks up? The answer to this question is twofold, and, when it comes down to it, the answer is really a matter of the business owners' preferences.

A business owner who opts to only hire temporary employees saves money in the off-season due to the lack of salary payments. The business owner has no obligation to the temporary employees, and when the work runs out at the end of the season, it runs out. However, when it comes time to increase staffing, the business owner runs into the problem of constantly having to hire and train new employees. The lack of regular employees with strong background knowledge about the job has the power to affect the business in a negative way. For these reasons, it truly depends on the type of business and which staffing model is the best fit.

Retaining Clientele: Making the Most of the Off-season
There are many things that seasonal business owners can do during the off-season, and the main one is to not let the target market forget about the business. Promotional offers and other forms of advertising are critical during this time, as promotions bring back the old customers and attract new ones.

In addition to retaining the client base, seasonal business owners should also look to see if the business can somehow be transformed based on what people need during that time, such as a landscaping business becoming a snow removal business during the winter months.


Source:  http://www.investopedia.com/articles/personal-finance/120915/4-management-tips-seasonal-business-owner.asp#ixzz4esElOe6E