How the Seasons Can Affect Your Business
By Amanda Martinez
Seasons come and seasons go. Living in central Illinois, we know this better than anyone. The long, hot days of summer will soon give way to falling leaves and falling temperatures of autumn. Have you ever thought about how the seasons can affect your small business? There are actually a number of ways that businesses might be affected by the seasons. Keep reading to find out more about what seasons or seasonal events might affect you, some of the ways you might be affected, and what you can do to thrive as one season turns into another.
Seasons Drive Sales
For some businesses, sales are significantly affected by the seasons. For example, a business that sells lawn mowers can predict that sales will be significantly lower in the winter than in the other 3 seasons. Sales in landscape and ag businesses will also necessarily be affected by the seasons. Retail businesses will usually find that their sales are affected by seasons as well with sales increasing dramatically before Christmas.
Preparing for the Seasons
Obviously fluctuations in sales will affect other functions of a business. Inventory will need to respond to the changes in demand. The work force employed will need to adjust too. Of course, sales will directly affect revenue and the amount of cash on hand to pay required expenses. As you can imagine, these seasonal variations require some forethought and planning. Businesses must be ready for the busy season so that they are able to capitalize on higher sales, revenue, and profit. On the other hand, they need to also save and prepare for the leaner times.
Sometimes a line of credit can help businesses to survive the seasonal ups and downs. Federated Bank offers line of credit options that can be adjusted to the needs of your business. You don’t have to struggle alone with the seasonal variations that businesses experience. Come in today and talk with a lender about how we can help.
