Useful advice on how to survive a seasonal business
By: Jennifer Gulle | Jul 04, 2012 19:00 pm
The Philippines enjoys reasonably good weather all year round, with some months being a bit cooler or hotter than the others. For this reason, businesses here are not too affected by the change in season, unlike those in other countries with marked seasons. But like other countries, the Philippines has periods where enterprises have such brisk sales that make it lucrative for season-based—or more appropriately said, holiday based—businesses to thrive.
What is a seasonal business? According to Qfinance.com, it is “trade influenced by time of year.” Different businesses have different seasons where they get the most amount of business or when they need to be open to get the best return on their investment. Examples of this kind of business are bazaars, fairs and even carnivals. Carnival operators or perya as we know it in the vernacular only have business when they can find a town to set up in. Even this is dependent on the date of the town fiesta, which is usually when they have business.
Securing capital is one of the challenges that seasonal businesses have. Since these businesses do not run for a whole year and consequently, their profit is also seasonal. People who own and run these businesses may have to borrow money to be able to re-open when their business season starts. They may also “scrimp to save enough capital to give them a leg up the next time they open,” says Peter Kawsek, whose company has over 35 years of experience in the manufacturing sector. Another challenge pertains to manpower, says Kawsek. Since the business is not open the whole year, the owners find themselves having to train new people for every cycle. “It would be prudent and very good for a business to have a core group that will help by keeping you from starting from scratch every time you open shop,” he advises.