The festive season can be an extremely busy and exhilarating time for the tourism industry – or any of the many other industries that experience a sharp seasonal fluctuation. It is therefore vital that business owners are adequately prepared to make the most of this busy period, while ensuring that customers will be returning when it’s over.
This is according to Arnold February, Regional Investment Manager at Business Partners Limited – one of Africa’s leading business loan and equity providers – who recommends an effective preparation strategy in anticipation of the peak season.
To begin with, make sure you know the numbers, says February. “While you can never really know if it is going to be a bumper peak season or a slow one, it helps to study the intricate details of your business and its performance beforehand.”
He advises to zoom in on any business vulnerabilities and constraints such as staff issues, process bottlenecks and infrastructure and facility issues , and to work to improve these ahead of time. “A weakness while things are slow could turn into a full-blown crisis when it gets busy,” February warns.
As it is common for the owners of owner-managed businesses to jump in to do all sorts of jobs from time to time, it’s crucial to look at your performance and ensure delegation takes place, he notes. “Analyse every task you do in a normal day and see what you can delegate to your employees.”
February says that a good trick to help keep your business on track during the peak season is to set simple goals such as increasing your gross profit by just 1% – something that can only be achieved with a strong knowledge of direct costs and current gross-profit percentages. “It can also be beneficial to reach out and work in tandem with complementary businesses in the broader industry; such as a guesthouse working with tour operators who bring the season’s tourists to the region.”
Ramping up for the season may also require extra staff members, so finalise plans around this, he notes. “Make sure that your seasonal staff are not only technically trained for the job, but also share the same values and approach as the permanent staff. In the same vein, get your orders to suppliers in well ahead of time and cultivate relationships with alternative suppliers in case you need to place emergency, last-minute orders.”
Even with all of the above plans in place, it’s important to have a “Plan B” ready in the event that the peak season turns out to be slower than expected, says February. “For example, a tourism company might consider offering a discounted package to locals if the seasonal influx of tourists turns out to be disappointing.”
February reminds business owners to think ahead to the next season and the possibilities of repeat business, even if it feels far away in the future. “A conscious effort to ask your clients to consider coming back next season can prove very fruitful,” he concludes.
