There are times when every business could use a little help with cash flow. Alternative business funding can be a great option. With a seasonal business, the off season can be rough. Even for those who aren’t truly a seasonal business, there are times throughout the year when business is not as good as it could be. Although business has slowed and sales are down, the bills keep coming in at a consistent rate. Overhead costs don’t fluctuate in the same way that sales do when the seasons change.
This is the time when many business owners dip into their working capital a little deeper or end up at the bank, applying for a loan. The possibility of depleting working capital during the off season is a frightening prospect and unless you’re looking to borrow a million dollars or more, getting a bank loan can be almost impossible. Alternative business funding can be a great solution to cover an off season shortfall and alternative lenders offer various funding options to keep your business growing.
There are also some things a business can do to increase sales during the off season or a slow period, adding additional revenue to their working capital.
Try thinking outside the box and look beyond your normal product line or services. What can you add that will complement your existing business and generate more? Look for a product or a service that will take your business into the next season.
Cultivate Off Season Business
Generating a buzz and creating the desire for products is done all the time. “Christmas in July” sales get people off the beach and into the stores. Halloween shops that pop up in the middle of summer have parents buying Halloween costumes before they’ve even started shopping for school clothes and supplies.
A seasonal resort business does its best business during the prime season when all the tourists are in town. If your business stays open all year long, make sure you’re offering products or services that appeal to your local clientele.
If you close up shop during the off season, try opening a few weeks earlier and staying open a few weeks later. Promote the benefits of shopping off season. Those who visit your business pre-season will have the best selection of the hottest new items. Offer great discounts to those who wait until after the season, providing them with a bargain and generating cash while clearing the way for new inventory.
When your business is located in a resort area, you can also capitalize on the fact there are fewer crowds allowing for a slower paced, more relaxing visit.
Use the internet and social media to grow your business all year long. Create an online store. Through e-commerce, those who normally only get to enjoy your products while on vacation can now purchase them all year long.
Take to social media and promote the next season’s events all through the off season as well as offer discounts and announce the upcoming arrival of next season’s new products.
Revamp Your Business
The off season is the perfect time to evaluate what you need to do to keep your business moving forward and take the necessary steps to make it happen. Maybe it’s time for a remodel. Or it could be the perfect time to develop a new product line or dive into e-commerce.
Use the off season to evaluate how well you did during your most recent busy season. Figure out what worked well for you and look for opportunities to expand or improve your business.
Alternative Business Funding Can Make it Happen
All of these are great opportunities to grow your business into one that doesn’t really have much of an off season. Initially though, they will probably all take working capital you can’t spare. This is where alternative business funding can help.
We are a privately owned and operated specialty finance, and alternative funding platform. Our team brings to the table more than 60 years of institutional investment banking experience in the credit, commercial finance, and capital markets.
We focus on providing capital access to small and mid-sized businesses (Merchants) in the U.S. that have historically been underserved by traditional financial institutions and may have experienced challenges obtaining timely financing. Contact us or apply online today and see how alternative business funding can help!