As seasons change, so do your business needs. Is your small business ready for summer? Summertime can bring exciting increased sales or a “summertime slump”, depending on your industry and geographic location. Whether the warmer months mean a ramp-up or slowdown in business, these tips for small business owners will help your business have its best summer season yet. Keep reading to learn about forecasting methods, upgrade ideas, staffing considerations, promotional ideas, and inventory solutions.
Forecast, Forecast, Forecast
This is the first and arguably most important step in preparing your business for seasonal changes. It’s imperative to create a forecast for the upcoming season so you know what to expect. So, how do you forecast your small business? Start with the questions:
- How much revenue did you produce last summer?
- Are you growing, and if so, at what rate?
The simplest forecasting tactic is to calculate your total revenue for last year’s summer season, then multiply that by your growth rate. Known as “Straight Line Forecasting,” this will give you a simple idea of your upcoming summer revenue. However, it doesn’t consider market fluctuations or other variables.
If you want to go deeper, a more complex forecasting model will take additional factors into consideration. These forecasting methods from Harvard Business School include moving average, simple linear regression, and multiple linear regression.
Slow Season? Perfect Time for Upgrades
If your business’s slow season is the summer, it’s the perfect time to perform upgrades. Consider utilizing Moody Bank’s business line of credit or business loan to upgrade your business during a quiet season. These upgrades could include:
1. Upgrade your POS system
Switching your point-of-sale system could help you get a lower rate on credit card processing, find a better system for your type of business, and more. If you are still “Cash Only,” now is the time to increase sales and efficiency by allowing your customers to pay however they like with all major credit and debit cards accepted.
2.Hire a business consultant
Do you feel like you could be doing something differently, but you’re not sure what or how? A business consultant could help you review and optimize your business finances, management structure, and more.
3.Buy more inventory or assets
Expanding your inventory, whether by purchasing more of your best sellers or adding new products to your rotation, can help you attract more customers and better serve your existing ones. Similarly, is it time to upgrade computer hardware, shelves or displays, or other equipment? Upgrade your assets now to get ready for summer.
4.Renovate exterior signage
Is your business signage clean, visible, and attractive to foot traffic? It may be time to clean, replace, or add to your signs.
5.Give your space a deep clean and layout refresh.
Spring cleaning applies to businesses, too. Sweep away the cobwebs and, while you’re at it, you may want to move a few things around and refresh your space’s layout.
6.Paint your exterior and interior.
A fresh coat of paint can also do a lot to brighten up your space and attract customers.
Prepare for Increased Foot Traffic
If your business is located in an area that sees increased foot traffic in the summer (i.e., an outdoor mall or plaza, in or near parks, beaches, or other outdoor hubs), it’s important to prepare ahead of time. To attract additional customers, we suggest:
- Put additional signage outside your business (as permitted by local zoning laws).
- If you have a restaurant or bar, offer outdoor seating and music.
- Have a designated staff member handing out samples of your products outside (again, as permitted by local zoning laws).
- Make sure you have enough staff scheduled to handle an increase in business.
Adjust Staffing Needs Ahead of Time
Sufficient staffing can make or break your summer season, so talk to your current staff about their seasonal availability well in advance. Transparency between owners, managers, and employees is key.
If expecting an increase in cashflow, hire early! Seasonal hiring for busy summer months should happen in early spring to ensure a well-seasoned, fully trained staff come peak summertime. A study by Zippia shows it takes 3-6 months for an employee to learn a new job. It’s worth the investment to hire early. Plus, it results in a larger applicant pool so you can avoid last-minute desperation hiring.
On the other hand, if you’re expecting a decrease in cashflow, ensure your staff is notified in advance so they can prepare for a decrease in available hours or potential seasonal layoffs.
Offer Seasonal Promotions
Get your customers excited about new seasonal offerings and advertise these at your storefront or on digital platforms. Offering product or service discounts will entice customers to visit your location. According to BigCommerce, a seasonal promotion helps bolster sales by increasing customer visibility.
Get Rid of Old Inventory
If you sell seasonal products such as clothing, sports gear, or home goods, it’s imperative to rid your stockroom of the old so you can bring in new, fresh inventory. It may hurt to mark down those winter coats or holiday decor and put them in the clearance section, but it’s important for your brand image and customer experience to highlight inventory that aligns with the season.
In fact, holding obsolete inventory can actually be costly. If you borrow money to purchase inventory, the interest continues to accrue the longer your old inventory is held. Additionally, obsolete inventory is taking up valuable space in your warehouse or storefront, leading to a lack of space for new inventory and potential costs to acquire additional space to house inventory.
Investing in an inventory management system will prevent excess inventory from accumulating in the future.
Get the funding you need to get ready for summer!
Are you considering upgrading your small business this summer? Contact our business lending team to learn more about business lines of credit and small business loans. We can help you identify the best type of business financing to meet your needs and guide you through the application process.
In addition to business financing, you can streamline your business operations this summer with Autobooks. Sign up today or contact us to learn more!