Blending Seasonality with Your Long-Range Business Plans

For most businesses, a long-range plan encompasses strategies and initiatives designed to “pay off” down the road. With seasonal businesses, any long-range plan generally includes similar elements—budget and sales forecasts, recruitment and retention strategies, marketing and cash flow decisions—as those needed for a more conventional, year-round enterprise.

But a focus on seasonal and related concerns has a direct impact on any business plans the owner or CEO might consider. Here are tips on blending your seasonal business with long-range plans for growth:

Always be prepared.

All businesses must work on preparing themselves for the future. For seasonal businesses, obviously, there is an off-season in which to tinker with (or dramatically alter) marketing initiatives, website redesign, and inventory management.

As just one example, notes Circuit, taking time to analyze recent sales patterns can help you gauge the money expected to come in “so you can budget effectively and have enough funds to cover expenses during slow periods.”

The off-season is the best time to “choose and prepare marketing campaigns, develop customer retention programs, and prepare inventory for the peak season,” notes Breakout Finance. That’s because there’s more opportunity “to be strategic when you’re not under the stress of the busiest time of the year.”

Conduct a thorough business analysis.

Seasonal businesses are most successful when they use the off-season to conduct an in-depth financial analysis. This analysis may include:

• Sales volume and patterns
• Current and anticipated expenses
• Status of inventory
• Effectiveness of current marketing campaigns
  
  

It’s also important to keep track of your company’s budget and cash-flow situation. You should always have enough cash on hand to address operational costs and other cyclical expenses. When possible, seek favorable payment terms with suppliers so you can gain the right balance between liquidity and inventory.

Keep a close eye on your stockpile of goods.

Speaking of inventory, every seasonal business faces a particular challenge: How much inventory should we stock at any given time? A mistake in this area can prove costly.

On the other hand, putting in a bulk order during the slow season can work to your benefit.

“Vendors typically offer steep discounts off bulk orders during slow periods,” notes United Capital Source. For this reason, placing an off-season order with favored vendors helps them plan for quantities of inventory needed in the holiday season. Also, “the less you pay for inventory, the lower prices you’ll be able to offer” to your customers.

Be strategic in your hiring efforts.

Waiting until the last minute to start hiring seasonal employees almost certainly guarantees trouble ahead.

Experts on seasonal business strongly urge owners and CEOs of these businesses to create a recruitment plan ASAP—a plan that “includes job descriptions, pay scale, scheduling hours/windows, and anticipated end dates,” notes Pursuit Lending. Also, closely scrutinize your company’s financials to ensure you can cover “wages, taxes, insurance, and other employment-related expenses (like additional insurance coverage and uniforms).”

The key is acting immediately to achieve your goal of having trained, customer-friendly staff on hand to meet your seasonal business demands.

Preparation, analysis, and strategies for hiring, effective cash-flow, and inventory management are key elements of any long-range planning effort. Seasonal businesses that incorporate these elements are more likely to reap desired results during their most important time of the year.

All businesses should remain agile in their planning process, but none more so than seasonal enterprises. Learn more about finding the right balance between agility and planning.