Some retail and service businesses see their strongest sales during certain seasons. For example, a landscaping business may see brisk business during the summer, while a holiday decorating service is likely to have higher sales at the end of the year. Indeed, many retailers, regardless of product, see their strongest sales during the holiday season at the end of the year.
Because of this, retailers and seasonal service businesses often experience annual “sales slump” periods. However, this does not mean that the team needs to sit idle or that there are no smart strategies that can strengthen the financial position of the company. Below, 14 members to make sure your business isn’t jeopardized during slow sales periods forbes finance council Share steps to help ensure financial health throughout the year.
1. Ensure a positive operating cash flow
Get ahead of seasonal slow periods by making sure your operating cash flow is positive and setting aside reserves before slow weather hits. If it appears that your business does not have enough cash flow to cover costs during a slow period, it may be necessary to obtain short-term working capital or a line of credit to help bridge the gap. , han maiburg, backed business funding
2. Manage the Cash Cycle Carefully
As your business enters a seasonal downturn, the financial leadership team needs to manage the cash cycle and control elements of working capital as you use profits from other quarters. It is also important to manage your relationship with the bank and have a range of loans to avail from. Also, work with your marketing and sales teams to promote off-season sales through discounts. , bilal surhyo, sleeping country
3. Keep Pursuing New Customers
Continue building your pipeline and onboarding potential new customers. If you slow down on marketing and prospecting during the slow months, it is inevitable that the months that follow will be slow as well. If you keep pursuing new customers, they will come once the holiday season is over. , Christina DeSimone Nappi, Desimone Agency Inc.
4. Increase Marketing Efforts in the New Year
Use the “surge” in revenue and profits that you may feel during the holidays to sustain your marketing efforts in the new year, if not the increase. Many businesses often cut back on this line item at times like these, so it naturally contributed to a slower first quarter in the new year. Don’t be like the herd or the role model in your industry; Instead, implement this strategy. , Christopher Hearn, spring sources
5. Work closely with vendors and seek cost savings through technology
We use two helpful strategies to maintain financial health. Firstly, we ensure that we negotiate regularly with our vendors to ensure that we are maximizing the services in our contracts or renegotiating for services that we do not use. are doing. Second, we conduct technology audits on a regular basis to ensure that we are expanding and utilizing all of the automation functions available to us. , Paul Blanco, Barnum Financial Group
6. Diversify Your Products or Services
Cash flow is often a problem for seasonal businesses. One approach that a business can take is to diversify its products or services to earn more revenue outside the peak season. For example, a landscaping business that is traditionally busiest in the summer might consider offering fall cleanup and snow plowing services to generate year-round income. , jeff call, Bennett Thrasher
7. Break out big expenses and save a portion of seasonal revenue
Find ways to break up large expenses and pay them off throughout the year. Make sure you stash a percentage of the cash you bring in for short outings during seasonal bumps. Also, evaluate whether there are any expenses that you can reduce or eliminate in Q1. It sounds simple, but the goal is to have cash on hand and avoid a month or quarter of high costs. , Paul Davis, strategic resource management
8. Focus on Long Term Planning
Slow periods are an opportunity to work on long-term planning. Dedicate time to understanding and building relationships with your customers. Refresh your marketing materials and plan new campaigns to expand your reach. See how your competitors differentiate themselves in the market. And make sure you and your employees are up to date on training that can strengthen your business. , Prakash Urrutia, Accion Opportunities Fund
9. Be financially and mentally prepared
Ask yourself: “Can I cut any in the new year?” and, “Are there any offbeat ideas I can implement in my business?” More importantly, you shouldn’t let a slow season go to waste. This is a good time to look at your business from an expense perspective and clear things up so you are ahead of the game when things come back. , joe cambaretto, national business capital
10. Increase your brand’s visibility online
Use your most valuable assets wisely by increasing the visibility of your online brand. You should market your business by posting on social media networks such as Facebook and Twitter, as well as publishing images of your products on Instagram and Pinterest. This will help increase website traffic and attract new customers who may not have heard of you before. , Neil Anders, Reliable Rates, Inc.
11. Secure access to working capital
Make sure you have access to working capital (either through cash reserves or a working capital facility) to ensure that the business can operate comfortably during slow seasons. To ensure success, it is important to set up the business so that it can continue to operate according to its strategic plan, rather than reacting based on the cash available in its bank account. , sean frank, Cloud Equity Group
12. Expand to New Markets
One strategy that a seasonal business can take advantage of to maintain financial health during slow periods is to consider diversifying its services or products. This may include offering add-on products or services such as maintenance plans, extended warranties and customer loyalty programs. Also, businesses can investigate new markets and customer segments to capitalize on untapped opportunities. , Angelo Ciaramello, funded trader
13. Essential stores
If you know you’re headed for a drop in sales after a big holiday revenue period, you should plan accordingly. Set aside enough cash to last you through the slow months, and be mindful of your non-recurring expenses during this slow period. Also, over-estimate the reserves you’ll need – double or triple your estimate, because it’s better to have excess cash in reserves than not enough. , Joseph Orseno, Bend
14. Be smart with cash in Q4
Cash is king in any business. Practice discipline with the benefit of vacation. If you know the holidays are a fat period and the first quarter of next year is a thin period, be smart with your cash. Avoid capital expenditures or take advantage of credit to make sure you have cash on hand. Being smart with cash eases stress and gives entrepreneurs breathing room to dream big. , toad sixt, Straight & Sound Wealth Management LLC
Credit: www.forbes.com /