How To Prevent Your Business From Seasonality?


Anybody with a company has certainly faced a phenomenon called Seasonality. It is considered one of the critical reasons that can lead a company to bankruptcy.


Finding out what seasonality means; is the least of worries, it is notably simple. The tricky thing is to be able to prevent when it happens, maintaining the excellent results in the company and becoming a successful entrepreneur.



Understanding Seasonality


Having a sense of seasonality is key to making progress in business. Seasonality is any change that can influence your business, usually in a negative way. But, seasonality can also be positive, as is the case of holidays that increases sales in certain trade activities.



How To Make A Profit From Positive Seasonalities?


It is common that in every business there are seasonalities, both constructive and destructive, which potentially reflects in business.
Making the most of this productive period is the number one rule any entrepreneur needs to learn.



The first step to avail most of the positive seasonalities is to have a stable planning, predicting and ways to take ground or advantage.



It is common for companies not to prepare well for their product/service and to end up benefitting from slip-through profit. It is occasioned by the lack of proper organization.



Tips To Protect You From Negative Seasonality


  1. Just as important as it is to make a profit from seasonality, it is also essential to not harm your business because of it.
  2. To minimize the inaccuracies caused by negative seasonality or even prevent them from influencing your business, you need to prepare well in advance.
  3. The first action is to merge the products/services that deliver a good flow to demand vs. profits in both seasonalities.



Consider the following questions beforehand:



#1. How To Discover An Alternative To Tackle Seasonality?


You need to conduct a thorough market research to find out which product/service has a demand during the seasonal off-time. This alternative can be similar to your area of expertise, and may not require an extensive time or monetary investment.


Then, design a regular set of steps rather than skipping a methodical layout, this is imperative. Otherwise, you will arrive at the end before you know it!




#2. Choosing The Ideal Product To Face Seasonality


Creating a list of viable goods & services might be useful and productive. However, if you still feel doubtful, write down the main features of each product, including the possible margin of return and expenses.


Find out which of the products can be blended with your business without causing problems, and above all, integrates the lowest cost content along with profit percentage; to balance the finances in a tumultuous period.




#3. Can Small Seasonal Events Cause Potential Damages?


An entrepreneur also should care about the small-term seasonalities of a business. Often investing capital in an idea that’s not fruitful brings additional overhead costs than profits.


There are micro-seasonalities that are not a significant reason to take away your peace of mind, but they can’t be ignored either. Be attentive and acknowledge some small losses, certainly, they will be less costly than taking meaningless actions to surpass the seasonality.






For any entrepreneur, some tips are imperative to combat seasonal hardships. Planning is the key to preventing it!


Circumstances often arise in business that does not always go as planned, which is why a backup plan is always needed to avoid solvency.


Formulate a strong and pragmatic strategy to save at least a modest part of your profits for emergencies in the off-season period. Do not allow weaker seasons from keeping your dream afloat. Implement the steps mentioned above and decide what’s best for your business. 



Image Credits: Aldermore