Starting a seasonal business can be a fun and exciting prospect for any entrepreneur. But the actual process can be vague and leave a lot to be discovered. Here are some pros and cons of starting a seasonal business.
Pros of Running a Seasonal Business
Time to plan and prepare
Off-seasons give you ample time to prepare budgets and procedures. This can be especially helpful when determining the cash flow of the business. Additionally, the off-season can give you time to recoup and recharge after the prime sales season.
Narrow target market
A seasonal business can maximize its budget by catering its marketing materials and channels to its target market.
Cons of Running a Seasonal Business
If your business relies on the weather, it can be very stressful. If a storm strikes during your peak time of year or during an event, your revenue could be impacted.
Hiring Seasonal Help
Hiring temporary staff can take up a lot of your time between hiring, recruiting, and training alone. If an employee is improperly trained or doesn’t reflect the character they showed initially, it could damage your revenue or your company’s public image.
Start-up costs can deter anyone from starting a seasonal business. Between permits, licenses, and location financing, businesses like this are no small task and present additional up-front costs and obligations.
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