Is Your Small Business Ready For the Canadian Winter?
As the temperature begins to drop, so do profits for many Canadian businesses. From what we know, it seems we’re in for one of the longer and snowier winters we have seen in the last few years. It’s a reality we have all come to terms with, but it’s a reality nonetheless. Stores see a significant drop in foot traffic, people opt to cook at home and driving becomes a headache. This blog post will explore how small businesses can weather the storm.
Sales change during Canadian winters
As we already saw, because of a drop in foot traffic and overall lack of people leaving the comfort of home, sales will take a hit. Industries such as retail and entertainment suffer due to this phenomenon. The months of January and February also suffer from the high holiday shopping credit card bills majority of shoppers experience.
On the other hand, some industries focused on winter friendly products (think hockey, skiing, etc.) thrive come the cold weather. Being resourceful Canadian companies like you are, finding ways to brace yourselves is likely always top of mind. Let’s take a look at how you can prepare your business because after all, winter is coming.
How small businesses can prepare for the winter
Just like a squirrel preparing for the weather to come, having strong resources to count on makes slower periods that much easier. Our winters usually last about 5 months and forecasting for that period isn’t always the easiest of tasks. You never know when unexpected expenses will arise or when sales could take a nose dive, being prepared for the worst case scenario is entrepreneurship 101.
Look for other opportunities
Winter brings a whole slew of opportunities with it. Depending what industry you’re in, the landscape may completely change with the seasons. A good example of this is an ice cream shop that specialized in hot drinks in the Winter. Being able to stay relevant is half the battle. Do what you need to do to keep customers walking through the door.
A resourceful small business can also take advantage of the many alternative financing options out there.
At Evolocity we deal with a lot of businesses that are seasonal. A Merchant Cash Advance works great for them for a few reasons. The beauty of the product is its repayment process is based around how your business is doing on a day to day basis. Without getting overly technical, repayment is made daily as a percentage of your credit and debit card receivables. This means if you process $0 your repayment is $0, so tough patches become much easier to deal with.
A Small Business Loan is another alternative that works with your budgeting. Repayments are once again made daily but opposed to being a percentage of your sales it works off a fixed rate. This means you are paying the same small amount every day which makes budgeting and planning for the season much easier. Traditional loans will often have one payment at the end of the month as a lump sum which can shock a businesses’ cash flow. Sometimes all a business needs to make it back to their most profitable time of year a boost of capital.
For more insight into ways you can support your growing business or obtain an online small business loan or merchant cash advance today, stay tuned to the Evolocity blog or visit our website for more information.