Summer falls into autumn, and winter’s close behind. As the seasons change, small business needs to be taking note and planning. Seasonal changes can impact and correlate with the changes in purchasing habits for a business’s customers, or they can suffer.
Individuals are more likely to purchase certain products or access certain services more than others in different seasons.
For example, hot cross buns are more likely to be sold during Easter, and the month/s preceding it. Warm winter wear is unlikely to sell during warmer months because there is little need for it.
Many factors can affect seasonal purchasing, and businesses should identify which factors are more relevant to their business:
- A change of season: the type of weather (sun, snow, rain etc.); what products are primarily needed; how often people visit specific locations during those seasons.
- Holiday season: Holiday periods result in higher purchasing and purchasing of more novelty items as opposed to need-based items (e.g. Christmas shirts)
- Seasonal jobs: Employment in certain industries, such as construction trades, changes seasonally, meaning groups will have more money coming in during certain seasons than others.
Businesses that have products and services which might correlate more with one season than another should be particularly aware of changes in customer practices so that they can be planning to make the necessary accommodations.
Small Business Planning Seasons
Product-based Business
Businesses that have products that are more popular during some seasons than others should be analysing data that gives insight into the increases and decreases of purchasing those products. Management like this will allow them to increase inventory during times of demand to not fall behind public demand and decrease inventory during low-purchase periods to avoid unnecessary stock taking up space.
Service-based Business
Businesses providing seasonally popular services should consider hiring individuals on a contract basis for the period of high demand. This strategy will allow them to fulfil the demands rather than struggle to meet them with limited employees. Hiring on a contract basis may be ideal since the number of employees may not be necessary during off-peak seasons.
Businesses should keep in mind that there are natural transition periods due to seasonal changes to their products and reflect their customers” needs.
If you have any questions, please feel free to contact us.
