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Seasonality and Its Effect on Business Sales and Performance

No business is exempt from the effects of seasonality. Sure, seasonality is easy to picture if you’re selling hats and mittens or academic planners, but what if the ebb and flow of your business sales is a little less obvious?

Even if a business isn’t thought of as seasonal, interest in and demand for products and services is still affected by seasonality. It’s a perfectly natural, and at times, annoyingly unavoidable aspect of business. But never fear. Just like we anticipate the leaves turning and the snow falling, the seasonality I’m talking about is predictable. This means it can be learned and understood. And, through that understanding, those perfectly unavoidable instances can be leveraged to your benefit. 

How Seasonality Affects Business Sales

Business Performance SeasonalitySeasonality plays an important role in business. Oftentimes, it is the cause of otherwise unexplained increases and decreases in sales. Those who lack an understanding of an industry’s natural cycle might misdiagnose a decline in sales, especially if it lasts longer than two months.

But, with a basic understanding of seasonality, a lull like that won’t lead business owners toward implementing unnecessary changes or chasing wild geese. Instead, it will be attributed to the industry’s annual fluctuation.

 

Seasonality and Business Performance

Accounting for seasonal fluctuations is necessary for developing a clear understanding of business performance. Take for instance some of the standard seasons capable of influencing consumer demand: holidays (Christmas, Easter, Valentine’s Day), government (tax returns, first day of school), and fiscal timelines (end of quarter and year-end reporting) are all key influencers.

Knowing how your product or service is affected by these timetables is necessary so the sales data can be adjusted to represent accurate sales performance. Otherwise, raw data showing a poor quarter might actually be above average when viewed according to seasonal benchmarks. Without accounting for seasonality, you’re leaving a blind spot in your business plan.

 

Leveraging Seasonality for Business Performance

Perhaps the greatest benefit to understanding how seasonality affects business sales is that it clues business owners into what they can and cannot control. Sometimes sales will be up and sometimes sales will be down, but if you’re able to adjust those figures according to the industry data, you’ll know whether those fluctuations are inside or outside your control. Which means you can allocate your energy and resources where they can make a difference.

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Our Sellers except us to achieve the highest and best offer for their business while taking the least amount of their time away from it as possible. That is because the absolute best use of their time is to continue to run and grow the company.  If revenue or profits begin to decline, buyers will walk away or decrease their offer. Transworld's philosophy can be summed up in a ten step, how-to strategy that culminates with the sale of a company. This proven method has been used to sell hundreds of businesses.  Here are the steps. Step1 Comprehensive Business Analysis and Feedback As your business broker, the first thing in our how-to strategy is to analyze your operation, finances, market potential and industry trends. We take that information and advise you on steps to prepare your business for sale, and  generate a business profile that represents your company in the most attractive way possible. Step2 Sale Structure We identify the best possible price range to sell your company. This is based on solid facts, the condition of the market, projected growth, sales potential and the sale of similar businesses within your industry. Transworld’s experts apply sophisticated, time-proven valuation techniques to ensure that your price is appropriate for the current market condition. The price must not be too high or too low. Yet, it must represent an attractive investment potential for the buyer. Step3 Confidentially Network The Business For Sale During the selling process, we utilize the latest technology to present your company to other business brokers and strategic buyers all over the world. This greatly multiplies the effort in your favor. With Transworld Business Advisors, you have literally thousands of industry professionals confidentially representing your company to buyers.   Step4 Confidentially Advertise To Buyers Our aggressive marketing program ensures your confidentiality and provides maximum exposure for your company. Your listing is placed in various industry databases, Internet sites, and publications which are constantly updated. We spend more money in advertising and marketing for buyers than anyone else in our industry. Step5 Control The Information Flow We organize all necessary documentation and release information only as needed. We use limited information when advertising to maintain confidentiality. Buyers are pre-qualified and required to execute a confidentiality agreement before receiving any sensitive business information. Step6 Create Competition For Your Company We attract thousands of buyers, creating competition for your business. Buyers are qualified for financial ability to meet the offer, and we engage you with only the most qualified buyers. Once you meet the best of the buyers, we urge them to prepare and present all offers. We can continue to engage potential buyers on your behalf as negotiation on an offer is in process and have another interested party ready to go should a buyer change their mind. Step7 We Negotiate For You To Achieve The Best Price Appropriate negotiation is crucial to achieving your best price and terms. We have the expertise to establish sound and resourceful negotiating techniques on your behalf. Transworld has trained all of its agents in the art of negotiating through curriculum that we have created specifically for our industry. Never negotiate without planning, expertise, or from a position of weakness. Step8 We Provide Exceptional Support To You Through The Due Diligence Process We take pride in our exceptional service. Only half of the job is finding the right buyer who will pay your price and meet your terms. The other half is getting that buyer to the closing table. We quarterback the deal, work with the accountants, lawyers, banks, landlords, and other third parties that could jeopardize the success of the transaction. We realize that you depend on us to guide you through the sale of your business. We make the transition simple and easy for you. We know when an opportunity for you may arise and are always there to take advantage of it. We also know when someone is trying to kill your deal or is being unreasonable and how to handle those situations. Step9 We Are There From Beginning To The Closing We help manage all administrative procedures, licenses, inventory counts and lease assignments that may be required. Transworld works closely with your advisors to ensure a smooth transition. Using the latest technology, we strive to be ready to work on your behalf to get the deal done! Step10 We Are There For The Transitional Phase And Beyond! Because we are in the business community, you may want to consult us from time to time after the sale. We will provide you with the assistance after closing. Transworld will always remain in your corner! Schedule Consultation Now

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