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Some small businesses enjoy a steady stream of revenue all year round. But there are many businesses that earn the bulk of their revenue during the summer months.
Some seasonal businesses earn 70% of their annual revenue within just a few months, says the U.S. Chamber of Commerce. But that can pose a challenge. If you expect revenue to slow down substantially, it becomes all the more important to stretch the extra income you bring in during the summer months. And here are a few strategies you can employ to do that.
1. Unload staff you don’t need year-round
Parting with employees who work hard and with whom you’ve developed personal relationships with can be difficult. But if you don’t expect your business to be able to sustain its summertime revenue, then it’s hard to justify the cost of retaining your full staff.
That doesn’t mean you have to cut ties completely, though. It may be possible to see if some hires are willing to work fewer hours. And if you hired employees on a seasonal basis to begin with, there shouldn’t be an issue, because ideally, you set the expectation from the start that come fall, those jobs would come to an end.
2. Outsource fewer tasks
When things are busy, it’s natural to try to hand off as many tasks as possible. But once business slows down, it may be time to reassess the extent to which you outsource different tasks, whether it’s marketing, accounting, or something else.
Do a review of your full-time employees and assess their respective skills. Also, ask them how many hours each week they think they can conceivably free up to help out with tasks you’d otherwise be inclined to outsource. If you happen to have an internal copywriter, for example, they may be able to help take over creating marketing content so you don’t have to hire an outside firm and rack up a huge tab for their services.
During the summer, when things are busy, you may be inclined to spring for things like iced coffee for your staff and group outings or workshops. But those extras might have to go so you can stretch your summer revenue further and make sure you’re able to cover your most essential expenses.
Take a look at your banking records and see what you can comfortably afford. And if you’re worried that cutting extras will result in backlash, be open with your staff about why you’re doing it. Your employees are apt to appreciate the fact that you’re prioritizing payroll over perks like on-site yoga classes.
Remember, too, that showing signs of appreciation can go a long way. Thanking workers individually sends the message that you’re acknowledging their effort — even if you can’t reward them with a perk that costs money.
Many businesses see revenue peak during the summer months and falter after the season is over. But you can make it so that summertime revenue is able to sustain your venture until peak season rolls around for you again.
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