2017-03-08 00:00:00 Running a Business English Has your construction business encountered a slowdown over the winter months? Discover four tips to help you overcome a seasonal slowdown. https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/06/foreman-reviews-plan-with-seasonal-employee-working-in-background.jpg https://quickbooks.intuit.com/ca/resources/business/low-business-winter-overcoming-seasonality-construction/ Low Business in Winter: Overcoming Seasonality in Construction

Low Business in Winter: Overcoming Seasonality in Construction

2 min read

Your construction business doesn’t need to go into hibernation over the winter. The slower months of the year allow you to capitalize on seasonal opportunities and prepare for the busy season ahead. Using several creative strategies can help your company flourish when it’s cold outside.

Marketing Preparation

Use downtime in the winter to focus on your marketing activities. Review your website to make sure its content for the upcoming season is correct, and it is easy to navigate; consider integrating it with analytics software to help you gather more detailed information about your customers. For example, if you own a roofing business, data may reveal that most of your clients prefer a particular design. Network at events that potential customers may attend, such as property development seminars. Try to negotiate new contracts for projects over the spring and summer.

Diversify Your Revenue Streams

Offer additional services that take advantage of the winter months to improve the consistency of your yearly cash flow. For instance, you could provide snow plowing and shoveling services from December through February. If you own a home construction business, consider conducting winter workshops where you teach customers about the basics of interior home remodeling. For example, you might run classes about do-it-yourself kitchen and bathroom restorations. Workshops allow you to demonstrate your expertise and experience that could put you at the forefront of customers’ minds when they need to have larger projects completed at other times of the year.

Improve Your Financial Management Efficiency

Winter is a perfect time for improving the efficiency of your inflows and outflows. Encourage customers to pay early by offering a discount for upfront payments in the slower months. For example, you could provide a 10% deduction to clients who pay a 30% deposit in January. Consider investing in financial software that helps streamline your processes, such as sending out automatic reminder emails before an invoice is due to reduce your late-paying clients. Negotiate terms with your suppliers that fit your business’s seasonality. For instance, if you receive the majority of your winter revenue in February, ask for an extended settlement for purchases made in December and January.

Have a Winter Sale

Having a winter sale is an effective way for your construction business to attract customers in the off season. Consider selling your excess timber and tools; you could auction the items to try and draw a larger crowd. Turn the sale into a family event. For example, you might organize a kids’ bounce house and provide a free lunch. Use the event to create buzz for your new season designs; you could invite a prominent architect to speak about the key features of your latest models. Keep information about upcoming products limited to help build anticipation before their release. Your business can take proactive steps to avoid a slowdown in revenue during the off season. To help your construction business remain winter-proof, consider diversifying your sources of income, focusing on your marketing activities, improving your financial management efficiency, or having a winter sale.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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