Regardless of your type of activity, there’s that time of the year when your sales are not too good. If you’re in the hotel industry, for example, you’ll enjoy a pleasant influx of clients in the summer and the holiday season. During the cold January winter, however, your sales are bound to plummet. And regardless of how much you dial down expenses, the hotel will still need to be kept running.
The off-peak period can be tough for unprepared businesses. To ensure you brave through the storm, make use of the rest of the year to plan ahead.
The following are a few tips to surviving the low season.
- Adopt efficient spending habits
A merchant with proper financial management skills will have a better chance of pulling through when the off-peak season comes. It is, therefore, advisable to save to the best of your ability, all year round. Just because it is the peak season doesn’t mean you should dramatically increase your spending. A little amount saved here and there may have a significant impact when times get tough.
- Build relevance
Low seasons often result from factors a business owner can’t control. But sometimes a good marketing policy might go a long way in boosting your sales. Take time to come up with reasons why customers might find your product or service interesting, even when its relevance has reduced.
One effective strategy that merchants employ involves convincing clients to make purchases ahead of the high season to avoid the last-minute rush. Smart hotel owners, for example, use this plan to enjoy steady bookings even during the off-peak season.
- Apply for alternative funding
Merchants typically anticipate for the low season and plan ahead, but as a result of unforeseen reasons, a slow month might turn out to be much slower than you had expected. In that event, getting a loan might help you get back on your feet.
However, an even better option would be a cash advance. If you’re already in business with a payment processing company, approach them and ask to be funded. Processors like First American Merchant also offer financial solutions to both new and existing clients.
The good thing about advances is that unlike loans which you will be expected to pay for in fixed installments at the end of every month, your provider only expects you to make payments through your credit card sales. And when the low season comes, you’ll only be paying a percentage what you can make.