How to Deal with Seasonality in Your Business

Seasonal change may not affect your business much, unless you are a farmer, where your crops depend on seasons to yield. However, in every business there comes a time when things don’t do perfectly well or may be affected by season change, for instance, the tourism sector.

Find projects before the slow season starts. Although it might seem like a diversion from the core business, setting up additional revenue sources to counteract the off-season could help generate income to support the main business agenda.

It is a good time to do staff training, planning, building inventory, repairing and maintaining equipment, and dry runs for new ideas. One more way to take advantage of the low season is to spend it on Research & Development. You need time to prepare your new products. You can do it while the business is slow and be ready with your new product when things pick up again.

You need to know these seasonal factors and how they affect your business, so that you can plan accordingly and avoid the drama when all of a sudden, your sales go down.

Because you still need to be on your A game when things go back in line, you have to determine whether you need to add seasonal staff to help improve performance. The key to doing so successfully involves developing skills and smart practices that will allow the company to remain profitable during off-seasons.

Look ahead to carry the business through slower periods consider putting away cash reserves during the busy months. From inventory to staffing, to avoid tying up cash unnecessarily during quiet months. And don’t forget to take advantage of slow stretches to prepare for the peak season.  

Seasonality affects nearly every business, with few exceptions. But building seasonality into the business plan will go far in ensuring success.

Article by Mercy Kariuki.