10 Steps to Seasonal Success

Question: I'm beginning to wonder if starting a seasonal business was such a good idea. Uneven revenue and a high-stress selling season followed by long periods of boredom make a seasonal business especially challenging. For this to work, I'm going to need guidance on smoothing seasonal bumps...and frayed nerves. Where can I find it?

Answer: Millions of small businesses post the bulk of their annual sales during a short season or cycle. For many retailers it's the holiday period, while fitness centers boom in January and sag when the summer exodus occurs. Some businesses soar when the weather warms, the tax or wedding season arrives or tourists hit the road. Others thrive on cold and snow, or times when kids are in school. Variations are almost endless.

But for seasonal small businesses of any kind, the pressure is on to succeed in a short time period. And that means coping with key issues of cash flow, biz owner burnout and finding good seasonal help.

Here are ten steps to seasonal business success:

1. Establish a tight budget and stick to it yearlong. Avoid the temptation to spend excessively when coffers are full.
   
   
2. Seasonal businesses require special time management skills. Plan schedules carefully. Some periods may call for only 25-hour workweeks, while others reach double or triple that.
   
   
3. Create a special cash reserve account for use only in leaner months. Set money aside whenever you can.
   
   
4. Use slow times to devise new marketing plans, do customer surveys, catch up on maintenance or strengthen client relationships. Send mailers, make calls, set up meetings.
   
   
5. Use only a small core of permanent employees. Consider temps, part time workers and interns for busy times. Planning ahead is crucial to having the right staff with the right skills, when you need them.
   
   
6. Create a cash flow forecast. This will help you identify patterns and see what you are up against. Include a worst-case plan to anticipate any nasty shocks.
   
   
7. Keep stock levels low. Carrying unneeded inventory ties up cash you may need elsewhere.
   
   
8. Shop for the best deals from suppliers; then build strong relationships with them to establish credit.
   
   
9. Offer off season sales or rates, and look for ways to generate revenue during quieter periods.
   
   
10. Work on your Web site. Off-season is a great time to fine-tune your online presence.

These resources can help:

• Seasonal slow periods are a great time to visit a nearby Small Business Development Center (SBDC) for free advice on cash flow issues or to sign up for business management training. The U.S. Small Business Administration runs the nationwide SBDC program. To find a nearby location visit www.sba.gov/sbdc.
  
  
• StaffSeek is a free online service that can help you find a temp staffing agency perfect for what you need. Select your state and the skills you need (office, clerical, professional, health care, technical, industrial, etc.), and StaffSeek will deliver a list of agencies, locations and phone numbers. The American Staffing Association, an employment industry trade group, runs this. Visit www.staffingtoday.net.
  
  
• Net-Temps is an online service that places temporary workers. The "Employers" section lets you post a job, search candidates or request help from staffing specialists. You can search a continuously updated supply of temp job seekers, locally, regionally or nationally. Enter specific job criteria using the "search agent" feature and Net-Temps will notify you by e-mail of any matching candidates that show up. Visit the site at www.net-temps.com or call (800) 307-0062.
  
  
• CAPlines seasonal lines of credit are SBA-guaranteed short-term loans that help small businesses survive sales ups and downs due to seasonal changes. To qualify, your business must have established a definite pattern of seasonal activity. Details in the Special Purpose Loan Programs section at www.sba.gov/financing.
  
  
• Internships are a good source of low-cost seasonal help for small companies. Local high schools and community colleges are always a good source of potential interns. Or set up an account and place free internship listings at InternshipPrograms.com. You can also search their database of candidate profiles and resumes. Other good sites include SummerJobs.com, Internjobs.com and Internships.com.