Some businesses are seasonal, which means they have a busy season and a slow season. For some, summer slowdowns are fairly predictable, while for others there really isn't a rhyme or reason. Summer slowdowns can impact businesses like restaurants outside major vacation destinations, Christmas-themed stores, and sellers of wood stoves and fireplaces, for example. Even businesses that aren't seasonal may have slower times in summer with people going on vacation or spending time at the beach or pool instead of shopping.
Dealing With a Summer Slowdown
There are some steps small business owners can take to reverse or lessen the impact of a summer slowdown. The first is to put aside as much money as you can spare for use during the slower time. Of course, this is the ideal, but many businesses don't have sufficient cash flow to sustain them over a slowdown. You may be able to lay off staff or reduce hours and save money that way as well.
The next step to take is to maximize business volume with marketing or following leads to increase sales. For retailers, having a summer sale could help generate extra cash. For online businesses, an increase in digital marketing efforts should lead to an increase in sales. Techniques like giveaways and buy one, get one free promotions will attract new and existing customers and liven a slump. The increase may not be enough to reverse the slowdown completely, but it will help.
More Ways To Increase Business
A slow period may be the perfect time to institute a referral program, talking to current customers about which of their friends and family members may want or need your products and services. Good referral programs offer rewards like discounts or free products for new customer referrals. Just be sure you can still make money with the reward you choose.
You may also want to consider whether there are new products or services you could offer especially for the summertime months -- popular seasonal products, or services that clients particularly need in summer. Office supply stores figured out many years ago that back to school products would lift their summer sales, for instance.
Some businesses partner with other businesses that have a similar target market. For example, interior decorators may partner with real estate agents to target those trying to sell their homes as well as new homeowners looking to make a house feel like home. Restaurants may partner with movie theaters to offer a dinner-and-a-movie package that saves customers a few dollars. A partnership can be mutually beneficial by accessing each business's current customer base to create new customers for each business.
How to Use a Business Cash Advance to Handle a Slowdown
Business cash advances are best used to help grow or expand a company. You may need cash to invest in marketing efforts, acquire additional inventory, or hire more staff (if business is brisk enough to justify it). A seasonal slowdown may be one of the few situations in which it makes sense to use a business cash advance to keep cash flow positive until sales pick up.
Business cash advances are available to qualified businesses just a week or two after applying, so they can really be useful in a pinch. Credit rating is not the main factor in qualifying for an advance; providers look for businesses that have a steady record of sales and mainly on-time payments to vendors. Business cash advances are not loans and are not secured, so many businesses will qualify even without collateral.
Furthermore, repayment is a set percentage of daily sales, so slower days will result in smaller payments. In this way, providers attempt to ensure that business owners can keep up with payments even in slower times. Quikstone Capital Solutions will partner with owners to get them the business cash they need to make it through a summer slowdown.
