Pros and cons of running a seasonal small business-Small Business Corner
Running a seasonal small business offers many advantages in terms of structuring your uptimes and downtimes – but it is not for everyone. Small businesses that only operate at certain times of the year come with a unique set of pros and cons. Understanding what these are will help you determine if opening a seasonal small business is the right choice for you.
There are really only two main types of seasonal small businesses: those that shut down during the slow season, and those that remain open year-round but that generate most of their revenue during their peak times.
Seasonal small business pros
You can regroup
You can plan ahead without the stress of having to manage day-to-day operations at the same time. Off-season is an ideal time to travel, and spend more time with family and friends, and in essence, recharge your batteries.
Having the time during the off-season to reach out and engage with past and potential customers is another advantage of running a seasonal small business. Many seasonal companies work with a highly targeted audience, making it much easier to customize and tailor services, products, and marketing communication plans.
Seasonal small business cons
Seasonal small businesses face a distinct set of financial challenges, due to shortened annual income opportunities.
Less time to recover
Income and client relations can be negatively impacted during peak season by anything from weather-related delays, and cancellations, which are out of our control, to system and equipment breakdowns, which can happen at any time. Basically, there is less time to recover from such unexpected events.
Not every small business can handle the idea of earnings that fluctuate so dramatically over the course of a year. And most seasonal small businesses experience very strong peak periods, that come with extra long work days and a significant outflow of energy which are the norm while business is good.
The decision to open a seasonal small business should fit with your personal interests and also with your priorities and goals. Every small business faces ups and downs, but for seasonal small business owners, those highs and lows are more intense.
We hope you find these tips helpful!
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