Depending on which industry your business falls into, you may find that some months of the year are much busier than others. For many small businesses, the fall/winter holiday season can lead to a big uptick in business. On the flip side, there may also be months where your business doesn’t have as high of a demand, resulting in lower amounts of revenue coming in. Research shows that 66% of B2B businesses experience a sales slump over the summer – with July and August being the worst affected months.
Making it through these sales slumps can be tricky for small business owners. Thankfully, there’s many things that you can do to keep your business afloat throughout any slower business seasons. We’ve highlighted some possibilities below.
Plan ahead
Having a season with less business demand means that you and your staff will have more free time on your hands – put this time to good use! Take advantage of the extra time by reviewing projections for following seasons and come up with a plan to increase your sales and market share once the demand goes back up. By using your down time to plan ahead for upcoming months, you can be more prepared for busy seasons and make up for any lost revenues once the off-season ends.
Cut down on unnecessary costs
You may not be able to eliminate all your operating costs during slower business seasons, but there are many ways you can minimize them. Maybe there’s facilities or equipment that you don’t absolutely need that can be powered down for a season. Service providers such as phone or internet may also offer seasonal options where you can scale back the services during select months of the year. With less revenue coming into your business during slow seasons, it’s important that you minimize the amount of money you’re spending. Making cuts such as these can make a huge difference in the overall financial stability of your business.
Hire seasonal employees
One way to minimize your spending during slower seasons is to make your employees seasonal. You don’t need to be paying a surplus of employees when business is down. By hiring seasonal employees, you can bring in extra staff during months of the year when your business is booming, without having to worry about continuing to spend your business’s funds on payrolls during the months when business is down.
Consider alternate profits
If you need extra funds, then you may consider finding ways your business can diversify or pivot to keep business up during your typical off season. Maybe you run a restaurant business that’s experiencing a lull in in-person dining during select months of the year. In that case, you could introduce a take-out or catering option to drive sales. Or maybe your business is built on a single niche product that does not encourage repeat customers. You may consider introducing a new product that can expand your overall offerings. Creating new lines of business can help to generate fresh interest and help to introduce sales in an otherwise slow season.
Open a savings account
One of the best ways to keep your business running during seasonal slumps is by having extra cash saved up. Opening a business savings account can help you to put some money aside to act as a cushion for slower seasons. As a Grasshopper client, you can put your idle money to work, earning 3.75% APY on balances of $25,000 or more with Innovator MMA Savings. You can also enjoy peace of mind knowing that your deposits are insured up to $250,000.
Take out a loan
If you still find yourself needing extra funds to make it through slower seasons, then an SBA loan may be a great option for your business. The SBA is a government agency dedicated to supporting small business owners, and one of the most well known ways they offer support is through their various loan programs. SBA loans have broad eligibility and compelling terms which make them a popular choice for small business owners looking for an extra boost in their funding. Getting access to an SBA loan is made simple for Grasshopper clients due to our digital app and the support of our SBA lending team, made up of experienced lending professionals. If your business needs additional funds on hand to make it through a seasonal slump, then an SBA loan may be exactly what your business needs.
By Michaela Lenahan in SBA Lending
