Seasonal businesses come with their own particular set of challenges. There are two types of seasonal businesses:  Those that close for the whole "off" season and those that are open all year but make most of their money only during a certain time of the year. This may take the form of a surf shop on the coast, a tour bus company, or a place for kids to spend the summer, to name a few.  There are many pros and cons to having a seasonal business, but there are also many ways to work well within these dynamics to make your business successful in the long term.

What are the pros and cons of a seasonal business?


A seasonal business has long periods of downtime when a lot of thinking, planning and updating can be done. This allows you to improve your skills and update your product to better serve your customers. A big pro is that you also get a break from all the busyness, and you can really invest in other things like taking it easy and spending time with family or working more on your business.

Businesses that are open all year often have slow times and busy times. This means that they sometimes run on very thin margins or even lose money while still paying for things like labour, inventory management, and other overhead costs, even though they aren't making much money. But, seasonal companies can hire seasonal workers and not have to pay them during the months when the business isn't open. This makes the business more efficient as a whole.

Seasonal business owners are also far more independent than others, as they don't have to stay in one place. They might even be able to find other business options on the side. This can be very invigorating and makes for a really interesting lifestyle.


Seasonal business owners know that there is a certain amount of stress that comes with this type of business. A challenge of any seasonal business is you only have a short time to make money and meet your goals, like being affected by bad weather in the case of holiday-based businesses or managing economic downturns. What's worst about having a holiday business is that you make a lot of money some months and nothing at all other months. Changes like these can really hurt your business goals, so you need to be ready for them.

Further to this, when the business isn't busy, the owner has more freedom, but when the business is busy, there aren't many chances to take time off. You might have to work long hours to make enough money to get by until the next season because everything depends on how well you do during the season.

So managing stress is very important. Having a good work-life balance is easy when it's not in-season, but it might be nearly impossible when it is. A holiday business owner might not have time for family for months at a time because they have to work such long hours. This could be risky for their relationships.

Smart seasonal business strategies

There is no doubt that seasonal businesses are hard and risky. But for entrepreneurs who are brave enough to take them on, they also hold huge growth potential and opportunities if they are determined, smart about business, and strong-willed. What are some of the things seasonal business owners can do to safeguard their business?

1. Keep track of your prices during the off-season

You should always be aware of your cash flow and ongoing costs. For holiday businesses, this is especially important. Knowing how much it costs to run your business during the slow season will help you find ways to save money during this time. 

2. Offer a wider range of products

When your busy season is over, you should go through your product lines and see if there is anything you can get rid of or sell. Sell these things for what you paid for them to get some of your money back. It's better to sell even if you lose a little money than to keep dead stock. The trick is to get rid of all of your stock as quickly as possible before the season ends. 

3.  Look for new locations

Where you are now, business may be slow, but there may be a need for what you offer in other places. If your store sells things that people like in the Spring and Summer but not so much in the Autumn and Winter, you might see a drop in sales. But at that time of year, it might make sense to send your goods to places in Europe where the seasons are different. An e-commerce service may be a good option for you so you can service other locations in order to ensure year-round sales.

4. Look at end-of-season sales

That way, things that are still in stock after the season is over don't have to be stored for six months. It's possible for you to give this stuff away for free or sell some of it to other businesses. Like, if you sell Christmas-themed items, you can keep putting them on sale for less. A lot of people go out of their way to buy things during sales after the holidays. Even though you might not make as much money as you do at your busiest, this is a great way to keep making money all season long.

5. Talk to your clients 

Your relationship with your customers will go on even after the busy season is over. You should stay in touch with them and keep building that relationship all year long if you want to keep them. Keep writing blog posts and sharing on social media on a daily basis. Send your customers emails once a week so they get used to hearing from you often. Having a good relationship with your customers is very helpful in many ways. For starters, it proves that your company is the best at what it does. When people think of your kind of goods, they'll think of your business right away. They'll also be more likely to tell their friends and family about you. 

The bottom line

There are different kinds of pressure and risk factors for seasonal businesses. But this can be carefully thought through, and if you approach it with a growth mindset, you can use that time to get rid of old stock, make plans for future seasons, and improve how your brand is positioned in the market. Don't forget that a Cash Advance could help your business grow quickly because repayments work directly in line with turnover; this type of business funding is perfect for seasonal businesses. For more information, contact Merchant Capital and fund your seasonal business in just 48 hours.

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