Most businesses experience a slow season at least once a year. What determines the slowdown for your business has to do with the service you provide.
For example, a pool company in Tucson will be extremely busy during the summer. Conversely, a hotel experiences a huge slowdown during the summer.
Seasonal slowdowns can be unnerving for the business owner. Potential cash flow issues may instill a sense of panic, but there is a bright side. Seasonal slowdowns provide much needed time to invest in your business. If you plan ahead and use this time strategically, it can be one of the most beneficial seasons of the year.
It is important to begin the process several months ahead of time. In anticipation of the upcoming slow season, avoid expensive purchases and reduce your operating expenses if possible. The more money you have in reserves, the better.
Take an introspective look at your business and identify the critical improvement areas. Which areas of your business require the most improvement? Maybe it is marketing, human resources, systems and processes or finances.
Now the slowdown is here, and you have some extra time on your hands. Before you invest time working on the critical areas of improvement, you need to verify they are still the top priority items.
Start with a quick market analysis and look for important changes happening in your industry. It is important that you examine your competition as well. Are they using any new technologies that give them a competitive advantage? Read our previous Biz Tips article on “Know Your Competition.”
Spend a little time identifying the right niche market for your business. Most businesses target too many different markets and their targets are too broad. By focusing on the right niche markets, you will see much better results. Read our article titled “Focus on Niche Markets.”
Finally, look at your critical areas of improvement and adjust them as necessary. Now you know how to invest your time to make the most of the slow season.
