Many business face the challenge of decreased business in February and need to make plans to get through what could be a difficult business month.
Although many business experience a February lull, particularly affected are businesses that operate outside such as window installers and builders. Retail and hospitality businesses are also affected. After the busy Christmas period and the January sales, February is a month when shoppers tend to buy less. Customers spend freely on meals and accommodation over Christmas, then tend to spend less in the first couple of months of the new year.
A time for planning
February can be the ideal time to sit down with the management team to plan ahead for the coming year. Instead of being bogged down with the day to day running of your business, you can make plans to expand and introduce new products or services. It is also a good time to decorate reception areas and showrooms.
It is better not to have a lull
Ideally it is better for businesses not to experience the traditional February sales drop. There are many ways to create promotions or special events to encourage customers to spend.
An example of this is the Northcote Hotel, near Blackburn that runs an event called Obsession, where top international chefs cook gourmet meals over 17 evenings in late January and early February when the hotel is usually quiet. This event attracts diners from all over Britain.
Amazon recently offered £10 off orders over £50 in celebration of its birthday. London has fewer tourists in January and February, but this also means that more theatre tickets are available and many attractions offer discounts. For some tourists, this makes it an ideal time to visit.
To encourage clients to spend in February requires creative thinking, or “thinking outside of the box.”
Cash flow
Creating special offers may not completely make up for a decrease in sales. Most businesses know when low sales periods are, and need to plan for this. It helps to outsource financial operations to an accounting service who can give advice on cash flow and make sure that there is enough working capital available to see a company through these dips. They can tell you if is necessary to take out a short-term loan or extend the bank overdraft.
For advice on dealing with a quiet February talk to Sollertia, the outsourced accounting service.