When you hear the term seasonal economic cycles, you probably think what happens in retail or business in a yearly cycle. However, that is not the case. A seasonal economic cycle is a typical cycle and uses the seasons, summer, fall, winter and spring, for a helpful comparison.
Economic Business Seasonal Cycle
We are all familiar with the seasons. If you think about it, the idea of applying it to economic cycles makes a lot of sense. Each season and how it corresponds to the same cycle in nature: growth or recovery (spring), wealth (summer), dying off (fall) and scarcity (winter). If you want to survive in business, you need to learn to anticipate these “seasonal” changes in the economy.
In spring, the economy is growing and expanding. You probably see more business and new customers. It is a good time to market and attract customers. It is one of the seasonal economic cycles that should be easiest to grow your business. You will probably also see more competitors popping up and competing for those customers. Spring is a time to make yourself stand out for your service and products. Just don’t be surprised when customers come and go. Be ready to compete, but don’t undercut yourself.
Business During Summer
Summer as a seasonal economic cycle is a time of economic flush. Business is booming and you are making a lot of money. This is a good thing, but you need to keep one thing in mind. The season WILL change and you need to save for when that time comes. It is very tempting to spend the entire extra money you have, maybe even go into some debt. Why not? The rates are great and you are making plenty enough to pay it back. The problem is, it won’t last. Use these strategies to counteract the slow summer season:
Business During Autumn and Winter
Which leads us to fall. Fall is the move into recession. Money gets tighter and customers stop spending as much. People are starting to change their priorities from want it, to need it. Fall is the time that you should be cutting out the dead wood and make your business run leaner and smarter.
By winter, recession has us in its cold grip. You’ll see that probably at least a third of your competitors have gone out of business. Winter is a time where you can really prepare for the coming spring, and if you saved when things were flush, you’ll be in a good position. All those customers of the out of business competitors are up for grabs. It’s a good time to get a deal on marketing and advertising, equipment purchases, buy out competitors or even take a vacation.
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A little planning for the seasonal economic cycles will help you stay a viable business throughout the year. At ActionCOACH Tampa Bay, we are dedicated to helping passionate entrepreneurs achieve their dreams of owning a successful business. Whether the challenge is team building in Tampa or executive coaching in St. Pete or Clearwater, our skilled business coaches have both the tools and proven systems to help any business novice achieve their goals.
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