While many seasonal businesses accept revenue and profit swings as their fate, the best find ways to smooth things out or turn seasonality into competitive advantages. You probably can’t change the underlying seasonality of demand. But you can choose whether to ignore, mitigate or leverage it.
You would think people should be able to account for holiday shifts in their plans. But many don’t. They ignore holiday shifts. They ignore seasonality. They are victims of the calendar.
You can mitigate seasonality by doing things like running off-season marketing campaigns, launching seasonally complementary products and carefully managing costs.
You can leverage seasonality by doing things that drive a wedge between your competitors' abilities to align their costs and revenues – like tieing up high-season contract manufacturing.
Implications for you
1) Understand the peaks and valleys of demand for your products and services and plan accordingly.
2) Find ways to smooth out revenues, costs or engage in complementary activities.
3) Look for ways to zig while others are zagging that can turn your seasonality into a competitive advantage.