Making a Year’s Profit in a Seasonal Business

ThinkstockPhotos-519122648Running a business takes an enormous amount of time and energy. It’s not easy keeping up with all the details, so many business owners seek help from Roe CPA, P.C., an Atlanta CPA firm with extensive experience in all facets of small business accounting.

If you have a seasonal business, you most likely face some challenges that year-round businesses don’t. After all, trying to squeeze a year’s worth of business into a far shorter period can get pretty hectic. Here are some tips that may help.

Cash Control

All small business owners have to be careful cash managers. Strict management is particularly critical when cash flows in over a relatively short period of time. One very important lesson to learn: Control the temptation to overspend when cash is plentiful.

Arming yourself with a realistic budget and sound financial projections — including next season’s start-up costs — will help you maintain control. And you may want to establish a line of credit just in case.

In the Off-season

It’s difficult to maintain visibility when you aren’t in business year round. But there’s no reason why you can’t send your customers periodic updates via e-mail or snail mail. You’ll certainly want to announce your reopening date well ahead of time. You can also spend time developing new leads and lining up new business.

Time for R and R

You deserve it, so take some time for rest and relaxation. But you’ll also want to use the time you’re closed to make any necessary repairs and take care of any sprucing up you’d like to do. You can also use the off-season to shop around and look for deals on items you keep in stock and/or equipment you need to buy or replace.

Expansion Plans

If you’re thinking of making the transition from “closed for the season” to “open all year,” start investigating new product lines or services. If you diversify in ways that are complementary to and compatible with your core business, your current customer base may provide support right away. A well-thought-out expansion can be the key to a successful transition into a year-round business.

Being the owner of any type of business has its rewards — and its challenges. We have a lot of experience working with small business owners and would be happy to assist you in any way we can.

To learn more tips about how to increase the bottom line of your seasonal business, give us a call today at 404-504-7051. Our staff of trained and experienced professionals will be happy to answer all of your questions. Or, request a free consultation online.