In this blog we’ll look at two strategies that will help you to “winter” slow seasons so you can compete well when the bulk of your business take place.
Consider A flexible workforce
You may rely upon permanent employees for some skilled tasks. As your business grows, you will probably find that your good employees are one of your best assets. On the other hand, you might find that a contract or temporary worker can provide you with many services without requiring you to spend as much money on overhead. Since few small business owners enjoy laying off people during the slow season, your flexible crew can free you up from that concern too.
For instance, instead of hiring a full-time receptionist, you may benefit from employing a virtual assistant who can monitor email and phone messages, respond to some and direct the important ones to your attention. You may find students with good work ethics who can handle some of the more routine summertime work and be happy to leave for school in the fall. These days, freelancers and temporary workers provide labor for many businesses with a lower overhead cost.
Weigh your options of buying or leasing equipment
In the long run, it might be cheaper to buy than lease your equipment. With some kinds of equipment, it’s better to own it because the employees will be familiar with it and your business can control maintenance. In other cases, you may profit by opting to make lease payments instead of buying.
If you spend too much of your reserves on equipment, you could lack funds to pay salaries and overhead if your income drops. This can be particularly true if you only need the equipment for a handful of months during an entire year. In December, you will still be holding onto depreciating equipment that you can’t even use.
Of course, if you are starting out or in a financial bind, it may be reasonable to seek a business loan to steady your venture.