Having a sound business strategy is important for the health and success of any business. But, this is especially important if you own a seasonal business. Ensuring that you master certain skills will help you keep your business running smoothly and make sure that it is safeguarded from financial troubles.
Here are some financial skills every seasonal business owner must work on.
Prepare for peak season
Use data from previous years of operation and determine your business’ peak season. If you have a business manufacturing cardigans, shawls and sweaters, you may find that you demand starts in September, peaks in December and recedes in January. So ensure that your production cycle is in line with these timelines.
Invest in market research to understand latest trends so that you can make the most of your 5-month peak period.You can also purchase and stock inventory accordingly, and ensure that you are not holding on to it unnecessarily as this will increase costs.Finance seasonal fluctuations easily with the Bajaj Finserv Business Loan. This loan offers you various benefits like quick approvals, flexible repayment tenors, and online account management. So, you can use it to carry out market research, hire extra staff during peak season or maintain inventory of raw materials. It also offers a Flexi business Loan facility that can help tackle unpredictable costs more affordably.
Since your business is seasonal, it is even more important to work on building visibility. Your customers must be aware of your brand, and so, you must take steps all through the year to build your brand. This will ensure that when winter is approaching, they reach out to your business and its products. So, ensure that you have an aggressive marketing strategy in place that works towards building brand recall. Engage with customers on social media, have contests and craft clever messaging that connects with your audience.
Be smart about staffing:
Draw up a plan enlisting how many employees you need all through the year and how many you need only during peak season. Then, hire your team accordingly. Be clear about the short-term contracts and ensure that you manage expectations from the beginning. Having all your employees working all year round will put severe strain on your finances. So, ensure that you hire employees after careful consideration.
Social media is everywhere. In the digital age, behaviour on social media platforms affects business loans as well. Today, online reputation management has become crucial to qualify for a loan. Lenders watch the activities of a company and its owners on platforms like Facebook, Twitter, LinkedIn, and others to judge their creditworthiness.
Additional Read: How to Set Up Your Own Trading Business
Positive interactions with customers on these platforms go a long way in establishing the goodwill of a company, and therefore its potential to retain and acquire customers. On the other hand, negative comments and poor reviews hurt a company's brand image and its eligibility for a loan.
Maintaining these five crucial data points are key factors in determining whether a business will get the required funds on time. In the changing economic scenario, the timely availability of funding may determine the difference between the success and failure of a venture.
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