Episode 83: How to survive the slow seasons in business
b'A seasonal fluctuation can result from dips in customer demand or supply issues.
No one can prepare for every possible contingency, but consider these seven tips for developing and sustaining a season-proof business. Here are seven tips to consider:
1. Understand the cycles in your industry.
The rapid growth of a company is not unusual for a business owner who\'s new to an industry. And that can disguise a normal seasonal fluctuation, leading the entrepreneur to expect the healthy sales will continue.
Base projections about seasonality on sales data from at least two or three years. If the business hasn\'t been around that long, check with peers and industry sources.
2. Fortify planning skills.
"Measure twice, cut once" is an old adage that still rings true, especially for a new business.
Look ahead at least six months to plan appropriately. To carry the business through slower periods (the shoulder season) and complete lulls (the\\xa0off-season), consider socking away cash reserves during the busy months.
Look hard at every element, from inventory to staffing, to avoid tying up cash unnecessarily during quiet months. And don\\u2019t forget to take advantage of slow stretches to prepare for the peak season.
3. Build alternative income streams.
Although it might seem like a diversion from the core business, set up additional revenue sources to counteract the off-season. Just don\'t let attention to the alternative stream overtake a focus on the primary business.
4. Customer promotions need to be countercyclical.'