04/ 02/ 2008
by Geoff Williams
At this time every year, Scott Ralls and his wife, Andrea, are in full planning mode, preparing for the peak season at Southwoods Camp in Paradox, N.Y. Every summer the upscale camp, located on 100 acres in the picturesque Adirondack Mountains, hosts 300 children for two four-week sessions. But when fall sets in and the campers return home to their families, the Ralls face one of the most pressing problems for seasonal small business owners--enduring the off season.
The first step to surviving the slow times is recognizing when they will arrive and how they will affect your business, says Beth Goldstein, a management consultant and author of The Ultimate Small Business Marketing Toolkit (McGraw-Hill, 2007). "You have to know when those slumps are coming and then work around them to make them work to your advantage," she says.
With Southwoods open to campers for only nine weeks a year, Ralls, who was involved in summer camps before opening his own in 1997, knew even before the grand opening that he would have to find a way to supplement his income all year. "When we first started the camp, I thought, why not maximize the facility?" Ralls says. With state-of-the-art sports facilities, cabins and a media center, Ralls quickly realized that he could boost his off-season business by renting the camp for reunions, retreats and weddings.
Ralls says the extra income from year-round customers accounts for approximately 10 to 15 percent of Southwoods' annual revenue, helping increase his summertime business in the process.
The revenue you bring in during slow periods should be invested right back into the business, Goldstein says.
Ralls uses his off-season money to provide better buildings and activities for his campers. "We were able to make our theater a lot nicer, and our new dining room looks out over the lake," he says. "Without the additional revenue from the off season, we would have had to find a cheaper place to build."
Socking away some of the extra funds for a rainy day is also a good idea, Goldstein says.
"Any wise business person knows not to plan just for the good times, but the bad times--recognizing that they're going to happen, even in the best industry," she says.
To stay in the black during every business cycle, you have to turn to your customers for help, Goldstein says. For Ralls, surviving the slow periods is all about adjusting his business to meet customers' needs. "First, take yourself out of the mind-set that you run a golf course or restaurant or summer camp," he says. "You have to ask yourself, 'What does the local community want, and how can my business help fulfill that need?' "
Still, Ralls' priority is helping kids enjoy an unforgettable summer. He suggests doing periodic checks to make sure you're not straying too far from your focus, and asking yourself if your customers are as happy as you'd like them to be, if your products or services are quality and if you are happy. If the answer is no, you may want to pull in the reins.
"You can grow outside of your core focus," he says, "but to be successful, you can never lose sight of it."
Changing Seasons
Transforming your off season into a lucrative sales period isn't as difficult as it sounds. Beth Goldstein, author of The Ultimate Small Business Marketing Toolkit (McGraw-Hill, 2007) explains how a few tweaks can put your business on top month after month.
Pay attention. If you're going to augment your off-season sales, you have to anticipate when the slow period will arrive and start planning for it. If your numbers tend to slide in the summer, plan to offer special discounts, products or gift cards to draw extra business during those slow months, Goldstein says.
Focus on value. Goldstein always recommends that small business owners think about value more than the specific product or service they offer. "The experience and benefits you offer are what truly matter, so in developing businesses with cycles, consider what products you offer, but focus your strategy for growth on the benefits you provide your customers," she says. When you offer your customers a unique value, they'll remain loyal, even in the slowest months.
Listen to your customers. Goldstein says small business owners should survey their customers to find their business' strengths and weaknesses. "Ask them, ‘When you think of my business, what comes to your mind?' " she says. "If all they talk about is the products, then you need to do something different." Once you know what kind of experience your customers want, you can tweak your product to bring in year-round success.
NFIB.com
For more tips on planning for the off season, check out the "Growth and Planning" section at www.NFIB.com/toolsandtips.
NFIB.com
For more tips on niche marketing, check out the "Sales and Marketing" section at www.NFIB.com/toolsandtips.
This article is from the April/May 2008 issue of MyBusiness.
