Managing
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Smooth Out Your Seasonal Sales Bumps

If you operate a seasonal business and are starting to wonder if the uneven
revenue streams and stress-filled crunch times are worth all the hassle, take
heart. Millions of small businesses post the bulk of their annual sales during a
short season or cycle.  

For many retailers the holidays are boom time. Fitness centers soar in
January and sag with the summer exodus. Some businesses sell more when
the weather warms, the tax or wedding season arrives or tourists travel.

Others thrive on cold or times when kids are in school. No matter what type of
seasonal business it is, the common thread is that you must succeed in a
short time. Issues such as cash flow, burnout and seasonal help are magnified.

To help smooth the bumps it will be important to create a tight budget and
stick to it throughout the year. Create a special cash reserve account for use
only in leaner months. Set money aside whenever you can. Creating a cash
flow forecast will help you identify patterns and see what you are up against.
Include a worst-case plan to anticipate any nasty shocks.

Operating a seasonal business also requires that you plan and use your time
more efficiently than other business owners. Some periods may call for only
25-hour workweeks, while others go far beyond that. To make sure everything
gets done and also avoid burnout, you’ll need to schedule your time carefully.

Put slower times to good use by using them to update your Web site, catch up
on maintenance, strengthen customer relationships or write marketing plans.
You may want to employ only a small core of permanent workers and use
temps or interns to fill in. Consider offering off-season sales or rates, and look
for ways to generate revenue during quieter periods.

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. You’ll find complete details and information on these credit lines in the
Special Purpose Loan Programs section at www.sba.gov/financing.

To learn more about operating seasonally, contact SCORE "Counselors to
America's Small Business." SCORE is a nonprofit organization of more than
10,500 volunteer business counselors who provide free, confidential business
counseling and training workshops to small business owners. Go to www.
scoredm.org on the web or call (515) 284-4760 between the hours of 10:00 A.
M. and 3:00 P.M. Monday through Friday.