The holidays are coming, and for many businesses, this is your busiest time of year. For other businesses, you have already had your busy season in the summer.
What do you do when the seasons change, and your business revenue dries up? Whether you are a bricks-and-mortar store, a restaurant, or a service provider, you will have your quiet periods.
Retailers can often see their sales jump by 15 percent above normal in December. They fall by twice that amount in January.
Are you looking to stabilize your revenue throughout the seasons? Read on to learn more.
1. Promote All-Year Round
It is easy to neglect your marketing when business is good. You are busy fulfilling orders and working on projects- but your outreach slows down.
Trouble is, when business slows for the season, your pipeline of work dries up.
An easy fix is to focus on perennial marketing. This marketing helps to keep inquiries coming in, even when you are busy.
Automate as much of your marketing as you can. Schedule emails and social media posts in advance, taking them off your to-do list. Consider creating a ‘waitlist’ of clients so there is always work available.
This option is a simple way to avoid loss of revenue when seasons change. If you sell physical products, set up your marketing in advance. It continues to promote your offer just before each season changes.
2. Explore Alternative Revenue Streams
You have probably got a wealth of assets you can rely on off-season periods that you do not realize. These extra revenue streams can help boost your income.
If you have got physical premises, you may be able to offer low-cost space for rent. Warehouses might sublet unused space. Offices could offer hot desking facilities.
Even service providers can change their offers when peak season ends.
Work in landscape gardening? Switch to indoor work, such as handyman services.
Offer childcare spaces during the summer while parents continue to work? Consider offering private tuition when the children go back to school.
3. View Finances from a Year-Round View
Some businesses get into trouble because they only look at finances on a monthly or quarterly basis. Months when business is good look great on paper. Off-season months look dreadful.
Switch your view to a yearly perspective. This perspective lets you track revenue loss against annual gains. It also lets you spot where you make a lot and where you make less.
Setting surplus funds aside during busy periods is a good way to offset this loss of revenue in quieter periods. Saving when you have better revenue lets you essentially pay yourself in the off-season.
4. Follow Up with Customers
How often do you serve a customer, only for them to walk out the door, never to be seen again?
According to the Pareto Principle, 80 percent of your revenue comes from 20 percent of your customers. Treat those customers well for a much-needed cash boost.
Physical stores should consider loyalty schemes or VIP programs for returning customers. Service providers should reach out to past clients to check their current needs.
Get customers onto an email list so you can contact them regularly.
5. Boost Business Revenue with a Capital Loan
Every business will need a financial boost from time to time. Maybe reliable clients have to pay you later than usual. Perhaps unexpected bad weather keeps customers away.
A working capital loan can give you the short-term cash injection your business needs. Then pay it back when business settles down.
The Bottom Line
Managing your business revenue is the key to managing your entire business. Without revenue, you cannot operate.
You can balance quiet off-seasonal periods with hectic quarters. Follow these tips to improve your revenue throughout the year.
Do you need a working capital loan to tide you over? Would you like to invest while your business is quiet? Fill out an application and get a quote today.
Combining a high level of personalized service with a cutting-edge lending platform, Formula Funding delivers an unparalleled banking alternative. We offer a fast and efficient option to get your business the critical funding it needs without the red tape. We work with all credit grades, tax liens, judgments, and charge-offs – something unheard of at a traditional bank. Since 2010 over 15,000 small business owners have used our funding sources to grow and expand.