4 ways seasonal businesses can thrive
Seasonal businesses run the gamut from ice cream shops to lawn-care services, but one thing they have in common is the majority of their revenue is brought in during a specific time period. While an influx of money is never a bad thing, it can be hard to plan for the rest of the year. Take a cue from the pros and take these steps to better manage your finances:
1. Review the last three years of financials.
One way to better gauge the future is by looking at the past. Review financial statements to look for patterns. How have income and expenses changed month to month and quarter to quarter over the last few years? Trends can provide a general idea of what you might expect in the future, so you’re not going into it in the dark.
2. Motivate customers off season with promotions and incentives.
Even though you might not operate year-round that doesn’t mean you can’t test the waters with off-season promotions. For example, if you own and operate a golf course, you might consider pushing gift certificates to your apparel shop as Christmas gifts. Top of mind awareness can mean great things for your business.
3. Operate lean.
Peak season might call for all hands on deck, but during the slower months you might be able to scale back in terms of staff. Just be sure to communicate your needs up front so that no one is blindsided.
4. Get advice.
You pay for what you get in today’s world. Free advice can cost you in the end. You’re best served talking with a tax professional who can help you mitigate risk and plan for the future. We have helped thousands of business owners like you grow their profits, reduce their taxes and improve their lifestyle. Our extensive financial and tax experience in varying industries puts us in a unique position to succeed. Give us a call today: (310) 613-1933