How Can Seasonal Businesses Thrive During the Off-Season?

Tourism is one of Thailand’s biggest industries, and this means that many businesses work on a seasonal basis around the vacation period. However, it can be difficult for seasonal businesses to stay afloat throughout the year due to a lack of cash flow during the off-season. Then, for businesses to see another high season, they need to be able to take certain measures to thrive.

Use Self-Storage Units

One of the main concerns for companies at the end of their high season is where they are going to store their equipment and inventory until their customers return. Retaining office or warehouse space for storage purposes can be incredibly expensive and is often not secure, leading to financial loss from theft and vandalism. However, self-storage units from companies like StorageArea can help seasonal businesses to survive by providing them with a safe location where they can store their goods until they need them again. Most contracts are also on a month-by-month basis, ensuring that you can rent this space when you need it, and no longer.

Employ Temporary Staff

Another aspect of running a seasonal business that might prove to be a concern is staffing, with some seasonal companies making the mistake of putting their employees on long-term contracts that they cannot sustain during the low season. To avoid this, businesses should consider employing staff on a temporary contract that gives them no expectation of staying on with the company after the season ends. Another option is to hire these workers from abroad on working visas.

Manage Cash Flow Appropriately

The main reason why seasonal businesses fail is due to a lack of cash flow throughout their slower periods. Due to this, seasonal businesses should learn how to manage their cash flow appropriately. They should also consider saving up for an emergency fund throughout their peak and keeping costs low to make sure that they have monetary reserves to rely upon when times get tough. They should also maintain a good relationship with their banks and creditors if they have taken out loans to ensure that they do not face financial issues throughout the difficult season of the year.

Have Multiple Income Avenues

Seasonal businesses should also try to not to put all of their eggs in one basket, and should instead focus on gaining multiple avenues of income for their business. These can then support them through the slow season of their main venture. For instance, hotels or resorts in tourist areas often offer their sites as conference or wedding venues throughout the winter period, or decide to open their restaurant for public use or in the holidays.

Offer Competitive Deals

Seasonal businesses do not have to close up completely when the season comes to an end, though. Instead, they should try to offer competitive deals, such as budget rates on rooms, during the winter season that can attract bargain-hunters. Although this means that seasonal businesses will be profiting less for the same product, it can help their revenue to flow more smoothly throughout the months of the year in which they traditionally struggle within.