Seasonal business can either close down at the end of the selling period or stay open and diversify their product or service offerings. Take a ski mountain for instance. There are plenty of resorts that close their doors come spring and won’t reopen until winter. Then, there are other mountains that extend their business for a full year by offering alpine slope rides, gondola rides, hiking expeditions and more. Think of your business and its products or services. Can it be expanded or re-marketed to hit a new audience in the off-season? It may take some clever thinking, but plenty of seasonal businesses have turned a once six-month operating business into a full twelve-month operation.

Here’s another example: Let’s say you have an online store that sells kites. Obviously you’ll make most of your sales in the spring and summer months. But, think about your audience: they like to be outdoors and control an activity toy. Now, think of something they can do in the wintertime. Can you sell remote control miniature snowmobiles or something similar? You already have a mailing list of customers who have the desire to be outside and have fun…now you can let them know about your new winter line of products. Maybe even a “winterized” line of snow kites! The point is, think of your audience, be creative and find a new way to satisfy your customers’ needs.

Using your time wisely during the off season

If you enjoy your months off too much to consider expanding into a year-round business or if your business is just too specialized to expand, then you can still put your off-months to good use. By working just a few hours a week during your off-season, you can work to find new customers, expand your product or service line, create new marketing materials or give your business a facelift. Injecting some new life into your business could increase profits, widen your target market and expand your product or service line. A boost in profits means more cash flow to help carry you through the off-season!

Budgeting during the off season

A big problem for seasonal businesses is being able to carry a few months worth of cash flow through a full twelve months. While the doors of your business may be closed, maintenance expenses, taxes and equipment leases still need to be paid off. Take your season’s profit and divide it by twelve. That number is your monthly profit – to be spread out through all twelve months. Be diligent in budgeting your cash flow and you won’t be strapped for cash mid-way through the off-season. However, it’s always smart to keep a line of credit open with a bank just in case you need a little cash boost because of an unforeseen expense. That will save your business from running into trouble, and possibly going bankrupt.

Concerned about paying your employees during the downtime? It’s probably a better idea not to have full-time employees for a seasonal business, until you can make yours a year-round operation and justify that expense. Consider hiring seasonal temporary help where you can. If you need additional help during off-peak, you can hire part-time help and make them full-time when you become busier. You may even be able to save money by hiring freelancers to do certain jobs like copywriting or graphic design.

Seasonal businesses require flexibility in cash flow and the operating season. If you’d like to expand your seasonal business into a full-year operation, then put your pen to paper and start brainstorming. Take a look at other businesses in your seasonal industry and see what they’re doing – you might just find yourself a great idea!