Thinking about opening a seasonal business? There are several pros and cons to consider. Here are the five essential questions you should ask before investing to ensure you find the right fit.
1. Is the Peak Season a Good Time for You?
A business that’s geared toward a particular season can be great for parents with kids or those with obligations at certain times of the year. So, when considering investing in one, assess what the season includes. For example, a summer business wouldn’t be good if you’re a parent who takes care of the kids during summer break. Or maybe you coach basketball, so your time is limited during winter. You will want to be able to give your full attention to your business during its peak season.
Secondly, ask yourself if you can manage the stress of peak season. Some businesses, like a boutique, might pick up a little more during holidays, but their hours never change. But for many, you have four to eight months of hyper-focusing on work. Those months could include extended workdays or working weekends to make the most of your peak season.
With Mosquito Authority, the peak season doesn’t have to be taxing. We provide support so you’re prepared to meet the demands of the summer months without being overwhelmed.
2. Can I Stay Disciplined in the Offseason?
Ride the peak season’s momentum, stretching your revenue through the slow season. CB Insights reports that 29% of small businesses fail because of cash flow problems. That can be hard near the end of your slow months when you’re performing pre-season prep, getting equipment ready, and training employees. All activities cost money. It’s essential to remember that peak season profits must pay for expenses throughout the entire year.
Another budget item to include is contingencies. FEMA reports that 40% of businesses aren’t able to reopen after a disaster. The incident could be weather-related or just a leaky roof. Forbes says contingencies should be a line item in your budget of up to 30% of all expenses.
You’ll also need to ask yourself if you can stay motivated and disciplined in the offseason. Seasonal businesses are great for giving owners time for research and development if they can stay regimented. You have time to research new technologies and products, attend workshops and networking events, or create marketing materials.
3. Is This Service Needed in My Community?
One benefit of seasonal businesses is that it’s typically a routine service, like lawn care, snow removal, or pest control. This means repeat customers. Before deciding to go all-in on a business, perform some market research. Is this service in demand in your area? For example, starting a snow removal business in coastal South Carolina would not be profitable. However, a pest control company like Mosquito Authority would be in demand because people love spending time outside most of the year in that part of the country.
4. Where Will I Run it?
Next, where will your office be? Can you run it out of your home? Or do you need to rent an office, storage, or retail space? If you can run your seasonal operation out of your home, you’ll save money on overhead. This is helpful during the offseason when there is little revenue to pay rent.
5. Can I Make a Profit in the Offseason?
Lastly, one way Forbes encourages entrepreneurs to fix revenue peaks and valleys is by creating another income stream, like another service. For example, if you perform pool cleaning, add home winter weatherproofing to your services to generate revenue during the slow months. If you don’t need that extra revenue, the perk of an off-season is you can use that time to take vacations, relax, or grow the business.
Find Success by Investing with Mosquito Authority
Starting a seasonal franchise can cut out the stress, because franchisors are there to walk you through how to start your business.
At Mosquito Authority, we make it so that anyone can fight mosquitos and other pests. We have franchisees from all backgrounds, from teachers to attorneys. No need to fret about figuring out all the necessary equipment; we have that planned out for you. The best part is that you can run the business from home, so there’s no commercial rent! You can become a thriving seasonal franchise owner by contacting us.