If you have a seasonal business, you most likely face some challenges that your-round businesses don’t  After all, trying to squeeze a year’s worth of business into a far shorter period can get pretty hectic.  Here are some tips that may help.

Cash Control

All small business owners have to be careful cash managers.  Strict management is particularly critical when cash flows in over a relatively short period of time.  One very important lesson to learn:  Control the temptation to overspend when cash is plentiful.

Arming yourself with a realistic budget and sound financial projections — including next season’s start-up costs — will help you maintain control.  And you may want to establish a line of credit just in case.

In the Off-seaon

It’s difficult to maintain visibility when you aren’t in business year round.  But there’s no reason why you can’t send your customers periodic updates via e-mail or snail mail.  You’ll certainly want to announce your reopening date well ahead of time.  You can also spend time developing new leads and lining up new business.

Time for R and R

You deserve it, so take some time for rest and relaxation.  But you’ll also want to use the time you’re closed to make any necessary repairs and take care of any sprucing up you’d like to do.  You can also use the off-season to shop around and look for deals on items you keep in stock and/or equipment you need to buy or replace.

Expansion Plans

If you’re thinking of making the transition from “closed for the season” to “open all year,” start investigating new product lines or services.  If you diversify in ways that are complementary to and compatible  with your core business, your current customer base may provide support right away.  A well-thought-out expansion can be the key to a successful transition into a year-round business.

Being the owner of any type of business has its ewards — and its challenges.  We have a lot of experience working with small business owners and would be happy to assist you in any way we can.

Veihl Consulting Group, P.C.
Certified Public Accountant
1416 S. Gratiot Avenue
Mount Clemens, Michigan 48043
(586) 468-6611

Tags: Budgeting, Cash Control, Expansion Plans, Financial Projections, Seasonal Business

This entry was posted on Tuesday, August 19th, 2008 at 12:38 pm and is filed under Budgeting. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.