Whether you operate a B&B establishment or a hot dog stand on the shore, making the most of your profits during certain periods of the year requires you to be particularly tenacious and innovative. In other words, you need to learn how to ride the highs of the tourist peak season and the lows of offseason months.
If you are already operating a business or about to start one, here are a few things you should know about how tourists are likely to affect your operations.
Your Require More Workers
Hiring temporary employees provides your business with low-cost help during those peak months. However, this labor model presents a few downsides since recruiting, training and retaining high-performing employees is resource-intensive, especially for small businesses. The seasonality of the tourism industry can also be a major headache for managers who have to account for labor force shortages.
One way to overcome this is by providing your employees with a work environment that encourages them to come back next season. This includes putting in place soft benefits and incentives such as offering flex time and memberships at health clubs. This can go far in encouraging good employees to hang around during the slow months.
Increased Working Capital
Working capital required for to maintain your business is also affected by the seasonality of the tourist industry. During peak productivity periods, working capital required is higher to cover increased operation expenses.
One of the hardest elements of managing cash flow during the tourist peak period is planning for future expenditures that are required all year round – regardless of how much revenue you bring in. Be on the safe side by negotiating terms with your lenders and suppliers, taking into consideration the off-peak tourist months. In most cases, lenders and suppliers do not work with business owners who do not plan adequately ahead of time.
Less Time to Plan
During the busy periods, you have little to no time to plan, maintain your building and equipment, and evaluate your business operations. The peak months also bring in more traffic milling in and around your business during work hours. This means increased chances of incidences like slips and falls that can negatively affect your business’ bottom line and reputation. Maybe you have been too busy dealing with a personal injury lawsuit. If so, partner with a law firm like Dolman Law Group to ensure that you are prepared for any unfortunate incidences.
Increased Sales Effort
Salespeople within your company depend on their productivity, and seasonality affects how much money they expect. Most salespeople tend to focus their energies according to the seasonality of the business, saving energy for periods when profitability is at its highest. During the tourist peak months, salespeople will maximize their sales efforts and spend the slow months networking and marketing.
Knowing how tourists are likely to affect local businesses will help you review your products and market positioning, and develop a plan of dealing with competitors. Use the tips above to plan and execute your marketing activities to ensure that you maximize that seasonal window. Even during the slow months, there are still ways you can stay relevant to your customers, both local and visitors.