Solutions to Generating Revenue During the "Off Season"

By David Carleton

An ongoing challenge for many business owners is the drop off in business during their "off season".  Your "off season" may vary depending on what specific types of products you sell or your geographic location.

This makes the “off season challenge” even more difficult because not only do companies experience a loss in revenue, but they also risk loosing skilled workers who are the backbone of their retail business. These employees are at risk of moving to other jobs to enjoy a more consistent and predictable income.

Many of the business owners say that they’re frustrated with their inability to grow their business, simply because they don’t have enough skilled staff and the thought of losing their employees during the "off season" troubles them.

You May Want To Consider Starting A Second Business

Starting a second line of business can be tricky. Running one business is tough enough but opening a second business can present a new set of conflicting priorities and strategies. The advantage you have is that you’ve been there before.

You are already familiar with many of the challenges that come with starting a new business. Many of the issues you’ll face while opening the new business, will be the same issues you’ve already tackled.

Perhaps the biggest decision in starting a second line of business is what type of business to start. Consider these steps when thinking about your new line of business.

Step 1 - Identify the expertise that you already have in your business. Either you or your key employees may have previous experience in other lines of business. One company noticed that he and his employees had extensive skills in the construction industry, which provided a foundation for his building business.

Step 2 – Survey your current customers to determine what needs they may have that you can offer during the off season months.

Don’t forget to look past the obvious for additional possible products or services you might be able to offer. Try thinking about potential services that you could leverage at your stores such as safety classes, tune-up specials, etc..

Step 3 – Create a plan for your new business that includes the four critical areas of financing, people, product, and marketing. These are the four cornerstones of any good business plan. They include the vital four questions you must ask yourself when starting any business, whether it’s a side business or your main business.

These questions are:

1. How will we finance the business?

2. How will I hire, maintain, and manage qualified employees?

3. What will my product or service look like and how will it be different?

4. How will I market my new product or service?

During the business planning phase is when you would investigate and learn more about the requirements to start your new venture.  You may find out that they are two different animals and that the barrier to entry is too high.

Step 4 – Start marketing your services early in the season to your current customers. What better group of people to market your new products and services to than to those whom you already have a business relationship with and who know and trust you.

Review your customer database and pull out all your customers with whom you have done multiple transactions. These are the customers that have demonstrated their loyalty to you and your business and are the most likely people to buy from you again.

Marketing your additional lines of service is also a vital step in building a successful diversified business. Many businesses that sell multiple services send a “We do it all” message and attempt to market all their services in one advertisement. This is confusing to the customer. Today, when consumers buy services they want specialists or businesses that have specific expertise in doing that one thing.

When advertising your new line of products and services, confine your advertisement to just one product or service. Although this may cost more, your ad will be far more effective. Once your prospect comes to your store, you’ll have an opportunity to cross-sell them on other products and services you provide.

Conclusion

Beginning a second line of business to offset the winter month’s slowdown is a smart move. Not only does it offset lagging income from slow months, but it allows you to maintain key employees and diversify your business income. By matching the skills and talents of your business to your customers’ needs or wants, you’ll be able to find the right product or service to pursue.

To your success.

David Carleton

Street Smart Sales and Marketing