by Leah Grant
Contact
© 2009
www.leahgrant.com
When
I first started coaching my mentor coach warned me that August and December tended
to be slow months while January, April and September were the busiest months in
terms of clients seeking coaches. Armed with this information, I was able to build
a realistic income forecast for my business as well as plan personal downtime.
Planning
around my business cycles is one key way I have been able to stay in business
for 12 years.
Unfortunately, too many people believe that
the amount they make one month will translate to all months and then they're in
trouble when that's not the case. I have seen it too many times. A business owner
will have a big party and overspend after having a great month then they are short
when a lean month comes along.
Most businesses have an annual
cycle and it's imperative to know what that cycle is for your business.
Determining
The Cycle
If you have been in business for a year or
more, go back in your records and chart the amount of business each month. Is
it steady? Are some months much higher while others much lower? Use this information
to define your business cycle.
If you are just starting
out, do some informational interviews with other people in your industry. Ask
what the busiest times of the year are and what the slowest are. Ask what affects
people's decisions in buying.
It's important to make the
distinction that the business cycle I'm speaking of in this article is not dictated
by the economy but rather by the buying habits of your clients and the seasonality
of your market. Slow periods created by a down economy require additional measures
be taken to generate business.
Making The Most Of Your
Business Cycle
Once you determine your business cycle,
brainstorm ways to leverage or minimize the slow times. Here are some ideas:
-
Do side work - For example, I teach classes at a virtual university. During
slow client months I keep my calendar full by teaching more classes and replace
the client cash flow with teaching cash flow. This minimizes the impact of client's
taking vacations and breaks that month.
I would recommend that the side
work either relates to your main business, compliment your main business or feed
a passion in you. The point is to stay engaged, not to start something completely
new and different.
- Catch-up. Although it's great to think
we get everything done we need and would like to, the reality is we often don't.
Make a list of unfinished projects such as scanning business cards, calling old
contacts, updating addresses, hiring a new CPA and plan to knock out the list
during a slow month.
- Create. Design new products, set-up
partnerships or create a marketing campaign that will roll out following the slow
cycle.
- Plan. It seems easier to take time to think, plan
and strategize when there are fewer day-to-day activities happening.
-
Update systems. When fewer people are using the systems you have in place
it's easier to transition to newer, better ones. Some systems to review: credit
card processing, database, newsletter provider and communications among your team.
-
Schedule doctor's appointments. I book all my annual doctor's appointments
during my slow months. Doing so keeps appointments from conflicting with my client
call schedules and gives me more wriggle room around the appointment so I don't
feel rushed to get back to the office.
- Connect. Meeting
friends for coffee or taking the time to have lunch with your spouse can be a
luxury during a busy month, so plan some outings when you can.
-
Rejuvenate. Slow months can be the perfect time for you to get away because
fewer clients will miss you. I take two to three weeks off in December to spend
quality time with my family in Colorado. I find that during this time I can turn
off my computer completely and enjoy really quality downtime to refresh my creative
juices.
To offset the weeks without work, I offer
clients the opportunity to pay upfront for the following year's sessions if they
need more tax write-offs in the current year. Typically, two to three clients
take advantage of this offer that helps to keep my December income balanced with
other months.
No matter how you choose to use the extra
time during slower months, make sure you do use it efficiently. Time is a commodity
for small business owners.
(c) 2009 Leah Grant Enterprises LLC.
