How to Cope During Low Sales Season

I know for fact that there are such things as off-peak season (when sales dwindle down) and peak season (when business picks up) in business. It can be tough for a small business to survive through the low times considering its level of Organizational Consulting Firms working capital. However, there are effective ways to cope the low times, and I’m telling you these are not only meant to help you survive during the off-peak season. They can actually help you improve sales despite the market climate.
Seasonal Business Gets Seasonal Sales
Most small businesses start off offering seasonal products, such as gift ideas, fireworks, and flower arrangements. Seasonal businesses are attractive options for a number of entrepreneurs because they’re relatively easy to run as compared with year-round businesses. But the problems with seasonal businesses are inconsistent sales and cash flows. If your business is celebration-dependent, or relies on special events to generate revenues, then for sure you know how it feels to do business on ordinary days. Waiting for the holidays can seem like forever.
Driving Sales during Off-Peak Seasons
It takes great financial and fiscal discipline for you to get through the year without ever worrying about the season. If you are serious with your business, strive to make it through the long-term, and not just during the holidays. Consider the following recommendations for coping up during low sales season.
1. Allocate month-specific budget. You pretty much know which months need the most budget, and those are usually the holiday months of November through January. For other months when celebrations are rare, tighten your belt. Make sure that you have enough funds when the peak season arrives.
2. Negotiate with your vendors. See if your vendors can offer you special considerations during times when sales are slow. If your vendors provide clients with extended payment terms during off-peak season, check how you may take advantage of the offer.
3. Obtain supplier credit line. It’s challenging to prove to suppliers you’re worth their trust. The key here is to manage your business well and settle your payables on time. Credit line is useful for both low and high sales seasons, but more particularly so during the slow times.
4. Expand into a multi-seasonal or year-round business. Think of ways to earn money outside your seasonal business. If you are selling holiday decors, then expand to related products like wedding souvenirs and corporate giveaways. With that, you don’t have to wait for the holidays to come around.
5. Reinvest end-of-season gains. Sales are high after peak season ends. Use cash prudently by planning and budgeting for the coming months. Reinvest it by repairing or upgrading your equipment or renovating your store. That way, you’re more than prepared to do business when the season starts.
Many entrepreneurs start off with a seasonal business, which they eventually expand into a year-round endeavor. It’s a good way of testing the waters. It’s a way to make sales and earn money on the side. But then again, it’s tough when the holidays are gone and your cash register runs empty. Well, you can How To Be A Good Consultant Book always close down and hibernate, which is what many seasonal businesses do. However, if you really want to do business full time and big time, you eventually have to start thinking bigger than a seasonal business. Often, the way to overcome season-related sales issues is to not depend on season at all.

READ  Follow-Up or Fall-Off: How to Improve Your Sales Process