You can’t avoid it, not all small businesses can remain busy year-round.
Whether you are a clothing boutique that is struggling after the holiday season or a landscaper in winter, you are going to experience a slow period in a fiscal year. Every business or industry experiences lulls, and that could really be tough.
When funds are stretched thin, you may choose to cut costs. This can be stressful – and sometimes can even hurt your business. With some patience and planning, you can get by until business starts to pick up again. There are strategies to ease the pain during this momentary period of time.
- Expand your range
It’s inevitable, if you are selling a product or service that is only needed at certain times of the year, you will experience a lack of income for a short time. But, if you are able to expand your product line, you will be able to generate that much-needed extra income.
For example, a landscaping business, in winter, can acquire extra customers by offering snow removal, weatherization, and holiday light hanging. Restaurants can offer holiday meals for those who prefer to order in for Christmas dinner. In January, the slowest time for retail, boutique owners can find seasonal products for their customers to purchase.
- Extend your operating season
If you are unable to increase your product line, you can get ahead of the competition and offer your services a little sooner than everyone else. Market yourself aggressively and offer lower rates or prices for work purchased or ordered earlier in the year. This takes the pressure off from any marketing duties that need to be performed during your busy season. The bottom line, if you seek customers before the peak of your season, you will get off to a good start.
- Stay on top of your finances
Although slow seasons lack income, you still need to keep precise finances. Being diligent about your finances does not always mean cutting expenses, but spending smarter. Your goal should be to maintain stability and shed unnecessary costs. Essentially, skip needless office expenses, and remain attentive to your marketing plan. You don’t want to be forgotten, so stay relevant in your industry, even during this time. Stay focused and keep working towards your goals.
It is easy to get overwhelmed at the mere idea your business will slow down. Take your slow season as a time to reevaluate your finances, goals, and future.
If you find yourself unable to bounce back and feel overwhelmed with debt, don’t stress, we can help! The first step is a phone call to American Finasco. We provide our clients with effective solutions and strategies for business debt relief. Let us take off the pressure and get your business back on track!
Also, we often work with Private Mortgage Financing Partners to provide a joint solution. PMF Partners can refinance your low loan to value commercial real estate and give you cash out to pay off or pay down other debt. Both options will help decrease your debt-to-income ratio.