Every business, no matter the product they sell or service they provide can fall victim to the highs and lows of the business cycle. How you handle these highs and lows can mean the difference when working to create a thriving business. It is true each business is subject to different cycles, but every business can react to these cycles in the same manner as it works towards creating a thriving business.
When we 5 Ways to Prevent High Inflation in Your Business talk about business cycles many immediately think of the roller coaster ride associated with economical recessions and booms. However, business cycles can also be as subtle as seasonal or weather cycles or cycles caused by vacations or shutdowns.
Having systems in place to help you cope with both the highs and lows of industry cycles will help to ensure that your business will continue to thrive. If you are not prepared for a boom it can cause just as much damage for your business as a recession. Here are some of the examples of ways to combat business cycles:
Offer a Complimentary Service
For those affected by weather seasons, offering a complimentary service can provide your business with the business needed to weather the seasonal cycle. For example, a Northern Canadian lawn care business would not have a vast demand for their services in the winter, but if they were to offer snow plowing in the winter to offset this slowdown they could find a consistent and steady income. Another example, if you do outdoor construction projects and you can’t work in the summer because it is too hot, why not target an indoor construction project until temperatures cool enough to return outdoors.
Target Opposite Markets
Look to the cycles of your target market and find someone at the opposite end of a cycle to assist during slow times. For example if you are a bookkeeper whose clients are mostly construction workers and the construction season is slow during tax season, why not offer your services to an accountant, who could probably use your help. Another example is if you target women to buy your product and right now they are not purchasing your product, figure out what changes are necessary to encourage men to buy your product.