Running a contracting business can be difficult due to how unreliable sales can be from month to month or season to season. When you depend on certain contracts or sales to come in to keep your business afloat, it can be stressful when you’re uncertain if you’ll meet quotas in the following months. Especially when the peak season has just ended, it can be extremely challenging to stay on top of sales long enough until the next busy season. With the tips below, you can better strategize and keep yourself and your contracting business afloat during the off-peak season.
1. Find the averages for the year.
Look back at previous sales histories and gather the average monthly amount of money you gain and spend in a twelve month period. This will help you to even out the costs you can expect to pay each month and how much money you can work with to pay yourself, pay your employees, and fund further contracts.
2. Look at the history of your business over the past few years.
Unless you have just started out, you should have some financial records of your company over the last few years. Break down the history by year and evaluate where the peak season is and where the weakest months are for your business. Not only is this valuable in many ways, but you can also use this information to plan your business strategies and to set money aside for the slower months.
3. Develop a precise plan.
Once you know the averages of your contracting business and when your peak and off-peak seasons are, you can create a detailed plan. Make sure to write it down and put it in a place where you can refer to it quickly and easily. Include the information you just found and strategize how you can keep costs low and maximize sales.
4. Stick to the budget.
When you know how much money you have saved up or how much money you can and need to spend on average, develop a budget and don’t stray from it. When you make a habit of spending as much money as you made in your peak seasons, you’ll run out of capital very quickly.
5. Stretch out your peak season profits.
Calculate the amount of money you made during your busiest season or month, but refuse to spend it all during your busy season. You can opt to divide this out between all of the months, along with your average, or specifically set it aside as emergency funds to utilize during your months with the lowest sales.
6. Offer new products, services, and discounts.
In order to increase sales during the slower sales months, start testing new strategize. You can develop a new product, offer a new service, or provide an incredible discount to draw in people that may not otherwise use or buy what you have to offer. Offering a steep discount is better than generating no sales at all, and you may even convert someone to a long-term customer!
7. Find additional funding.
If an off-peak month catches you off guard, you can always find additional funding with the help of lenders. Although most banks can be difficult to go through, Smart Business Funding can give you the funding you need to make your business excel or get it through the rough months in the year.
Established business owners are encouraged to apply today for consideration for business funding.