Some may think that owning a seasonal business is a holy grail, as an owner together with his employees works hard only during the high season, and it can be just several months a year. Meanwhile, they slack off the rest time of the year. Sounds good, isn’t it? It is strange and yet true, running a seasonal business requires year-round work and good self-organization. It has some challenges, but the first, and the biggest is that the merchants should make money for the entire year in a few short months.
Typically, seasonal businesses break up into two categories: those who can afford to close during the off-season and those who have to find the way to maintain cash flow during the rest of the year. To improve the chances of your biz success, you may follow these tips:
- Save money during the peak season.
- Trim the fat during the off-season.
- Appeal to your customers’ sense of professional courtesy.
- Create special offers to attract customers in the off-season.
- Work with other businesses to attract off-season attention.
- Communicate with customers year-round.
A success of any company lies in going with the cash flow. The seasonal businesses should be in high demand and profit to experience severe seasonal fluctuations and always suffer during off-seasons. The sales fall off, and you have less working capital to prepare your business for the coming high season? A merchant cash advance can help you to bridge over the difficulties. The idea is to be to offer these products. Of course, there are many solutions for a small business loan, family and friends, credit cards processing, Crowdfunding and your savings to maintain financial stability.
Anyway, let’s be clear that a Merchant Cash Advance is more preferable for a seasonal industry, as it is easy and fast to obtain and pay back in exchange for a share of future sales.
- There is no fixed repayment schedule, and a certain amount is deducted daily depending on the sales. In slow days you pay less, and in the case of high sales you pay more, what means you will pay the advance back sooner.
- The requirements are not strict, and it has high approval rates.
- The application process is quick and does not require any collateral.
Having obtained a merchant cash advance right before the high season you may count on the bulk purchase at a pretty good discount, thus and so you would get the drop on the competitors, as you are prepared to the full with newly-designed inventory and other required things.
Remember that obtaining a small business loan can be a challenge as financial institutions and banks consider seasonal businesses to be high risk and assume fixed loan repayments to be impossible during the off-season. However, if your business accepts credit cards, you can be approved for a business cash advance of up to $1,000,000 against future sales.
To learn more about whether a merchant cash advance is ideal for your seasonal business this year, contact 800fund.com. Your consultation with us is free, and there is never any obligation to move forward.