1 Give examples of industries that are affected by seasonali

1) Give examples of industries that are affected by seasonality. Why would these businesses want to filter out seasonality?

Solution

1.00 Most businesses experience some ebb and flow in business and in many cases these fluctuations correspond with the seasons. 2.00 Seasonal business is a term that refers to the fluctuations in business that correspond to changes in season 3.00 Season can be understood in this context to include a) seasons of the year and their weather-related changes, b) holidays, and c) events like the summer school holiday, the fall return to school, or the Super Bowl. 4.00 Although most businesses experience some seasonal business fluctuations, others experience severe seasonal fluctuations and may even limit their operations to particular seasons Examples of such businesses include 1.00 operators of vacation cottages 2.00 lawn care service businesses 3.00 businesses that contract to do snow removal Organizations facing seasonal variations, such as ice-cream vendors, are often interested in knowing their performance relative to the normal seasonal variation. Extremely seasonal businesses may close down completely for part of the year or drastically scale back operations during their off-season, managing only basic services such as accounts payable and/or maintenance work. Many retail businesses have a strong seasonal component and see the majority of their profits generated in one or two seasons of the year, the year-end or Christmas season being a typically busy period There are predictable events that can influence sales in every month of the year. Some businesses use this uncertainty to their advantage, offering unique sales pitches revolving around the snow, or lack of it 4.00 In a business that is truly driven by the seasons, there are steps that can be taken to ensure greater success. The two most important factors are managing cash flow and hiring the right employees Cash flow management is, quite simply, all about timing cash inflows and outflows. Filter out seasonality Seasonal factors are a strong force even for businesses that think are immune to them. You need to know these seasonal specifics and how they affect your business, so that you can plan accordingly and avoid the drama when all of a sudden, with no obvious reason your sales or the volume of your projects nose dive, leaving you penniless 1.00 Try to make the most before the seasonal factors kick in 2.00 Find projects before the slow season starts. 3.00 Use the low season for R&D 4.00 Plan some rest for the low season. 5.00 If you have a business with drastic seasonal dependence then consider starting a business for other times of the year If you don’t know these seasonal fluctuations, when the low season comes, you will be unpleasantly surprised You simply need to know your high and low season(s), so that you adapt your schedule and plan accordingly.