No matter what business you run, there is bound to be a seasonal sales uptake and at other times, seasonal dips. For instance, at this time of year, gift-giving tends to favour florists – with almost 30% of adults purchasing flowers over the Valentines’ Day period according to survey produced by About Flowers in 2019.
While this uptake in sales makes for positive cashflow, a crucial question for managers to ask is how this temporary business high can be turned into sustainable business growth.
To help you make the most of the increased footfall typical of this time of year, we’ve included some tips on how you can channel profit back into your business for the long-term health of your company.
Plough it back into marketing
What goes up, must come down – as goes the business cycle. To prepare for the inevitable dip in profits that comes with the passing of seasons, business owners should increase their marketing spend to sustain traction towards their business during quieter months.
This approach aligns with perhaps the most common method of determining a marketing budget – the percentage of sales approach. This follows the simple logic of when sales increase so should the marketing spend, and when sales fall, the marketing spend should follow suit.
This approach has the advantage of always keeping the budget within reasonable limits.
Improve your infrastructure
Quality is intrinsically tied to the price you’re able to charge your customers. If you have the cash available, why not reinvest this into increasing the quality of your consumer-facing infrastructure? For example, if you own a restaurant, add some sparkle to its interior to make customers feel comfortable spending a little extra on that burger.
In similar vein, if you’re holding a mass-volume, low-price market position, then why not improve your technological infrastructure to cut costs for both you and, then, in turn, your customer.
Introduce benefit packages
Without our staff we would never be able to run our business. So, if you feel that they have worked hard during the seasonal rush, then a great business investment would be to reward them. This doesn’t have to be a bonus (although this is likely to be welcomed), what you can do is introduce benefit packages that are not only great news for the present, but also will be in the future too.
In short, always aim to invest in the future of your business. If you have big ideas for expansion, Funding Bay is always here to get you the extra cash to turn a good month into a good year.
Why not inquire about a merchant cash advance using your uptake in sales as a record of what your business is capable of?