Every time of year has advantages and dis-advantages for starting a business. Early summer presents some interesting choices, dependent upon the type of business you are starting.
Different sectors benefit from starting in the summer
- B2C - For many businesses Christmas represents the peak of the trading year. Many retailers make two thirds or more of their profits in the Xmas period. But if you are planning a business in this sector, you must have your product in place and marketing developed for maximum impact by early September – the start of the main Xmas buying season for many in the retail trade. Given the normal lead times, this usually means a new business being up and running by early summer.
- B2B - Another sector which finds it pays to be in business by early summer is the business to business sector. Holidays can play havoc with normal establish trading patterns. Businesses providing services to other businesses, find that early summer is the start of the peak demand for holiday cover. So service providers such as recruitment agencies usually find summer a lucrative time.
- Tourism - This is also true of businesses providing services to holiday makers or simply is located in holiday hot-spots such as seaside resorts, tourist destinations, etc. Summer brings in an influx of happy tourists with money to spend.
Research your market
When starting a new business it is vital you research your market. Anything which provides feedback on your products and /or services is essential. If you have a key selling season such as Christmas it is preferable to make sure your offering is viable when business is quieter. Mistakes such as over- pricing products can be less costly in quieter times.
What are the negatives of starting in early summer?
- Well, if you provide products or services to the consumer and are not located in a holiday destination, summer can bring reduced demand because of the number of people on holiday.
- In addition people often put off making big decisions such as making a major purchase or changing employment until after their summer holiday. So furniture stores are usually quieter in summer.
Starting a new business is always challenging. The time of year is just one of a number of factors worth considering when thinking of “taking the plunge” and starting a new business.