Some businesses are seasonal and that brings with it a whole host of challenges both in the peak season and in the down season. Here we will examine some of the challenges that seasonal variations in demand can bring and we will offer some potential solutions.


Your seasonal cycle will likely be similar to other competitors in your industry. Researching your industry can go a long way to helping you understand this. If you are doing something relatively new for which there is not much information available, one approach is to start keeping track of what is going on.

Some businesses experience a significant increase in demand over the summer, while for some business may drop off entirely at that time. A lot of companies may experience reduced demand over the Christmas period. Over time patterns will appear, and these can be used for more effective planning in the future.


You’ll need more staff at your busy times and fewer the rest of the time. Develop a small core team that will work with you year-round on activities that operate all of the time and bring in seasonal staff to handle the peaks. In your seasonal staff look for people that can become regulars so you don’t have to keep training new people. For example, students that are interested in working with you every summer could be a good bet, or retired people that do not want a permanent long term commitment, but who are happy to help out in peak seasons.


Marketing well will make sure you maximise your peak season, but also that you make the most of your down season. It is also important to market at the right times to attract the clientele you seek. For example, for travel, the holiday season itself is summer time, but many people start looking for holidays in January, so marketing at the right time is critical.


One of the key factors in successfully managing seasonal variations in demand is effectively managing cash flow. According to Aldermore, seasonality is one of the biggest causes of cash flow problems in small businesses. In fact, this company reports that 18% of organisations face a cash flow crisis on a monthly basis, with seasonal issues being a major cause of this problem. While there are a number of good options for small businesses to gain access to credit, 6% choose to use a credit card and 4%, business loans to get them through seasonal challenges.


In this area, Fundsquire can help. We offer several options to help SMEs with seasonal cash flow issues. Popular choices include our research and development tax credit loan and our invoice financing solution. We can also offer commercial loans to businesses that may find it difficult to get credit elsewhere. When businesses have cash flow issues as a result of seasonality these financing options can help tide the gap to get through to the next seasonal rush.