Seasonal Business? How To Make Your Peak Time Benefit Your Downtime

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If your business earns the majority of its revenue in a very short period of time, you'd better be prepared to make the most of it. If not, a seasonal boom can quickly turn into an offseason bust.

Whether you’re making sure you don’t go broke in the offseason, getting enough people to work in the peak season or having inventory to stock your shelves for the rush, planning well ahead is critical to the survival of any seasonal business.

Here are three keys to make sure you knock it out of the park.

Buy Low, Sell High

If you deal in merchandise, your inventory is the lifeblood of your cash flow. Without careful management, your cash flow arteries can become woefully clogged with unsellable or low-margin merchandise, leaving your business on life support until your next season — if you get one.

One client of mine runs two hardware/outdoor equipment stores. He changes over 80% of his inventory every three months. In other words, only 20% of his inventory is sold year-round. Without a plan, he’d be up the creek without a paddle, literally.

The company orders Christmas stock in July, winter stock in spring and summer stock right after Christmas. Why? Because when demand is low, so are prices. He constantly has seasonal stock stored in his warehouse because it saves money. “If I didn’t plan ahead, I’d be out of business," he said.

The lesson here is clear. Plan ahead so that you can buy low and sell high.

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Shutterstock

If your business earns the majority of its revenue in a very short period of time, you'd better be prepared to make the most of it. If not, a seasonal boom can quickly turn into an offseason bust.

Whether you’re making sure you don’t go broke in the offseason, getting enough people to work in the peak season or having inventory to stock your shelves for the rush, planning well ahead is critical to the survival of any seasonal business.

Here are three keys to make sure you knock it out of the park.

Buy Low, Sell High

If you deal in merchandise, your inventory is the lifeblood of your cash flow. Without careful management, your cash flow arteries can become woefully clogged with unsellable or low-margin merchandise, leaving your business on life support until your next season — if you get one.

One client of mine runs two hardware/outdoor equipment stores. He changes over 80% of his inventory every three months. In other words, only 20% of his inventory is sold year-round. Without a plan, he’d be up the creek without a paddle, literally.

The company orders Christmas stock in July, winter stock in spring and summer stock right after Christmas. Why? Because when demand is low, so are prices. He constantly has seasonal stock stored in his warehouse because it saves money. “If I didn’t plan ahead, I’d be out of business," he said.

The lesson here is clear. Plan ahead so that you can buy low and sell high.

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https://www.forbes.com/sites/forbescoachescouncil/2017/10/23/seasonal-business-how-to-make-your-peak-time-benefit-your-downtime/