Adjusting Seasonal Goals For Optimal Success | The Alternative Board

Many businesses experience significant seasonality at certain times of year. These anticipated fluctuations can dramatically alter standard operations, short-term profitability, and the long-term viability of an organization. The ebbs and flows don’t just affect standard seasonal businesses, like certain tourism companies and retail shops; perhaps surprisingly up to 70% of US businesses experience some form of seasonality. Even companies that may seem mostly immune to seasonality, like manufacturers, often experience predictable slow times due to factors like product cycles, holidays, weather, and other regular events.

Riding out a slow season can be exhausting, deflating, and bank-busting for those business owners who don’t prepare and plan. Those who opt to simply grin and bear it often experience some pretty negative impacts to their cash flow, inventory management, productivity, and employee retention.

The key to navigating the challenges of these seasonality challenges is creating a comprehensive strategy that leverages opportunities and adjustments for both your busy and slow seasons.

The 3 Levels of Seasonality

Seasonality is generally experienced in one of three ways, depending on how contributing factors affect supply and demand.

1. Moderate Seasonality is characterized by a 10-20% rise in sales, maybe what you might see in the retail sector during back-to-school season. Moderate seasonality poses less of a challenge to businesses, as the fluctuation in sales, inventory management, and operations are minor and easily manageable.

2. Significant Seasonality is when seasonal sales are amplified by 21-30%, and thus requires more comprehensive strategic planning to prepare for both the high and low seasons. Companies that experience significant seasonality arguably struggle most with employee issues, as they are less likely to augment their staff with seasonal contractors to cover the extra traffic.

Comprehensive preparation and adaptive strategic planning empower companies to manage seasonal fluctuations and leverage both busy and slow seasons for optimum results and profitability. The level of seasonality your business experiences will help dictate the actions you should take to ensure the best outcomes throughout the year.

Adjusting Strategic Goals to Optimize Seasonal Success

While there are numerous ways to address seasonality in your business, the following are almost universal components in creating a strategic plan that will maximize efficiency and earnings.

Forecasting & Planning

Leverage historical data and market research to predict seasonal trends. Be aware of changes in market conditions, the competition, and customer behavior. Create budgets that allow for as much flexibility as possible to address seasonal fluctuations without negative impacts to operations or the bottom line. Make sure that financial and other critical resources are accessible during peak times.

Inventory & Operational Adjustments

Work with your suppliers to ensure that inventory levels match seasonal demand. Just-in-time inventory practices can reduce holding costs during seasonal lulls and help avoid empty shelves during busy season.

Consider hiring temporary, part-time or contract workers to augment your staff during the busy seasons. Train current employees in multiple roles to provide your business with staffing flexibility and improved employee retention throughout the year.

The off-season is the perfect time to schedule maintenance and equipment upgrades.

Create Engaging Marketing Strategies

Adjust your marketing efforts based on seasonal customer preferences and behaviors. Create marketing campaigns that highlight the current or impending season. Offer special promotions or discounts to boost seasonal sales.

Connect and engage with your customer base with personalized email campaigns that feature seasonal advantages and products. Be sure to share your perspective and excitement regarding the season in social media posts and include images of seasonal goods or services.

Use targeted email marketing and social media to keep customers informed about upcoming deals and new products. Build loyalty with your best recurring customers by offering them exclusive deals or incentives during the off-season.

Remember, Seasonality Can Be a Very Good Thing

These predictable peaks and valleys provide business owners invaluable insight into key business drivers like customer behavior, efficient operations, supply chain management, effective marketing strategies, and smart HR tactics.

Leveraging seasonality can make your business better all year long.