Does your business experience the summertime blues?
If seasonal fluctuations cause a decline in your business, then you’re not alone. Business owners in all industries face a decrease in customers over the summer, and re-calibrating to keep up-to-date with payroll, overhead, and other expenses can be a challenge.
Applying for a business line of credit might be the key to keeping your business afloat over the summer, and prepare for things to pick up over the next few months.
Regardless of how much you’re looking forward to taking in the sun this summer, these warm months can halt your momentum, depending on your industry.
For tourism-related businesses like airlines and hotels, business booms over the summer. The same is often true for restaurants, which thrive off of patrons who are eager to get out of the house.
Unfortunately, many businesses experience a cyclical decline in sales over the summer, for a few reasons.
It’s no secret that summer is the most popular time for Americans to go on vacation. According to a Gallup poll, 51% of Americans plan to go on vacation in July, with August being a close second for the most popular vacation month. These vacations aren’t quick weekend getaways, either; one third of Americans will take up to two weeks.
Specifically, decision makers who earn higher salaries tend to be out of the office. This can prevent small businesses from finalizing new initiatives and opening up the door for new profit centers. Equally so, it can also prevent other businesses from landing sales with these decision makers.
While many business owners will also indulge in the summer fun, this reprieve can hinder growth across all industries, in companies of all sizes.
Even employees who stick it out and remain in the office over the summer can be less productive, making fewer decisions regarding spending. In fact, some company cultures even foster this behavior, as a way to reward employees for hard work throughout the rest of the year.
Summer Friday programs, in which employers allow employees to leave early (or not work at all) on Fridays, are becoming increasingly popular. 55% of employers offer these programs, a 9% increase from the previous year.
Relaxed summer dress code adjustments can play a role in this transition to a lower-stress environment as well.
While we’re a big proponent for embracing a positive corporate culture, during the summertime, other companies may unfortunately be reluctant to spend.
When faced with these seasonal expense-related challenges, resourceful business owners determined to keep momentum moving often opt to explore financing options.
The heat of summer doesn’t have to temporarily halt your operations. In fact, applying for a line of credit can empower you to keep your momentum going, and even accelerate to reach the next level.
Applying for a credit line during a seasonal slump gives you access to the funding you need to keep things going, without sky-high interest rates that other loans carry. Even with a challenged credit score, you can qualify for this flexible term-financing in days, not weeks or months.
After qualifying for a predetermined amount, you can withdraw cash as you identify the need for it. The best part: the interest rates you pay will be based on the amount that you withdraw and use, rather than the amount you initially qualify for. And, as you gradually repay these loans, you have the option to withdraw more cash!
Unlike traditional loans from banks and direct lenders, a true revolving line of credit is tailored specifically to your needs, without overbearing terms or collateral.
You may not be experiencing a summer slowdown yet– but when the time comes, having cash on hand can be a lifesaver. And, additional capital can also open the door for new opportunities once you’ve taken care of all of your expenses.
With foot traffic and sales down, continuing to pay your team can be difficult to manage. From a financial standpoint, laying off workers or slashing hours might be your first instinct. But, by doing so, you’ll lose the talented employees who are effective in performing the day-to-day tasks in your business. Even cutting hours might discourage employees from staying on board, and force them to look elsewhere. Do everything you can to prevent this–keeping these trained employees on board is vital for your continued success!
A business line of credit can help you to continue paying these employees during difficult times, and eliminate the need to re-train new employees once things pick up.
Like payroll, keeping up-to-date with all of your overhead costs can be a real challenge when business slows over the summer. When times are tough, rent payments might take a backseat to other more pressing expenses, like supplies and materials. Utilizing a line of credit enables you to pay all of these expenses, preventing costs from piling up. The freedom to draw from your summer line of credit can give you some much-needed peace of mind during an otherwise hectic period.
The summer weather might decrease customers’ interest in your standard offerings, but that doesn’t mean your business needs to come to a standstill. Finding a related service or product– that screams summer, rather than another time of the year– can help you remain relevant, regardless of the season.
Sometimes, it’s best to look at having fewer customers and reduced profits as an opportunity to make the improvements you’ve been putting off. Without customers flying through the door, the summer is a much better time to replace equipment, and take care of much-needed renovations.
Summer is also an ideal time to update your process, and train your team on how to complete things in a more effective way.
Sales through your normal customer base might be down– but if you’re a resourceful business owner, then try looking at this as a challenge to reach a new one! Nimble and targeted marketing is imperative in helping you to get there.
But the days of renting a Yellow Pages ad and calling it a day are over– for the best results, you’ll want to go digital. At National Business Capital & Services, we have a digital marketing service that can help you reach local customers in no time!
Through social media marketing, you can reach younger customers in the space where they’re most comfortable. Pay-per-click advertising drives traffic straight back to your website, which you want to be as modern and mobile-friendly as possible to provide the best reach.
Summer slowdowns can happen spontaneously, and like everything else in the business world, they’re often difficult to predict. Having access to a revolving line of credit before entering the difficult phase can make all of the difference.
At National, our team of financing advisors is always on call to listen to your needs, communicate with our network of 75+ lenders, and relay loan options to you. Rather than waiting weeks or months, we’ll respond back with loans suited to your needs in hours! Fill out our 60-second application or give us a call at (888) 488-GROW!
National Business Capital & Services is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.
Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.
We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!
Matt Carrigan is the Content Writer at National Business Capital & Services. He loves spending every day creating content to educate business owners across every industry about business growth strategies, and how they can access the funding they need!