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Online VS Offline Market Comparison

Of Fruits & Vegetables .

A Project Submitted to
University Of Mumbai for partial completion of the degree of
Masters in Commerce
Under the faculty of Commerce

Dhiraj Harishchandra Jaiswal
Under the Guidance of



MUMBAI 400093.


Academic year: September 2019

Online VS Offline Market Comparison
Of Fruits & Vegetables .

A Project Submitted to
University Of Mumbai for partial completion of the degree of
Masters in Commerce
Under the faculty of Commerce

Dhiraj Harishchandra Jaiswal

Under the Guidance of

MUMBAI 400093.


Academic year: September 2019


Sr Name of the chapter Page No.

1 Introduction 8-10

1.1 11
1.2 12
1.3 13
1.4 14
1.5 15
1.6 16
1.7 17-19

2 Research Methodology 24

3 Literature Review 34-41

4 Data Analysis Interpretation and 42-50


5 Conclusion 51

5.1 Suggestions 52-53

Questionnaire 54-56
Bibliography 57


This is to certify that Mr. Dhiraj Harishchandra Jaiswal has worked and duly
completed her project work for the degree of Master in Commerce under the
faculty of commerce in the subject of Dr. Leena Nair and her project is entitled,“
Online VS Offline Market Comparison Of Fruits & Vegetables ” under my

I further certify that the entire work has been done by the learner under my
guidance in that no part of it has been submitted previously for any degree or
diploma of any University.

It is her own work and facts reported by her personal findings investigations.

__________ ______________ ______________ _____________

Dr. Leena Nair Dr. Sadhana Venkatesh Dr. Vijaya Krishna
Project guide Co-ordinator External examiner Principal

Declaration by Learner

I the undersigned hereby Mr. Dhiraj Harishchandra Jaiswal declare that the
work embodied in this project titled “ Online VS Offline Market Comparison Of
Fruits & Vegetables ” forms my own contribution to the research work carried
out under the guidance of Dr. Leena Nair is a result of my own research work
and has been not been previously submitted by any other university for any
other degree /diploma to this or any other university.

Whenever reference has been made to previous works of others, it has been
clearly indicated as such and included in the bibliography.

I, hereby further declare that all information of this document has been obtained
and presented in accordance with academic rules and ethical conduct.

Name and Signature of Learner

Certified by
Dr. Leena Nair


To list who all have helped me is difficult because there are so numerous and the depth is so

I would like to acknowledge the following as being idealistic channels and fresh dimensions in
the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me a chance to do this

I would like to thank my Principal, Dr. Vijaya Krishna for providing the necessary facilities
required for completion of this project.

I take this opportunity to thank our Coordinator, Dr. Sadhana Venkateshfor her moral
support and guidance

I would also like to express my sincere gratitude towards my project guide, Dr. Leena Nair
whose guidance and care made the project successful.

I would like to thank my College library for having provided various reference books and
magazines related to my project

Lastly, I would like to thank each and every person who directly or indirectly helped me in the
completion of the project especially my Parents and Peers who supported me throughout
my project.


1.Definition of Online Market : Online marketing, or Internet marketing, refers to

advertising and marketing efforts that use the Web and email to drive direct sales
via electronic commerce, in addition to sales leads from websites or emails. Internet
marketing and online advertising efforts are typically used in conjunction with
traditional types of advertising such as radio, television, newspapers and magazines.

2.Definition of Online Market : Online marketing is a set of tools and methodologies

used for promoting products and services through the internet. Online marketing
includes a wider range of marketing elements than traditional business marketing due
to the extra channels and marketing mechanisms available on the internet

 Specialized Areas of Online Marketing

-Internet marketing can also be broken down into more specialized areas such as
Web marketing, email marketing and social media marketing:

• Web marketing includes e-commerce Web sites, affiliate marketing Web sites,
promotional or informative Web sites, online advertising on search engines,
and organic search engine results via search engine optimization (SEO).
• Email marketing involves both advertising and promotional marketing efforts
via e-mail messages to current and prospective customers.
• Social media marketing involves both advertising and marketing
(including viral marketing) efforts via social networking sites like Facebook,
Twitter, YouTube and Digg.
• Search engine optimization (SEO) involves the optimization of landing pages
within your website to increase the number of visitors.

 Meaning of Online Market : In easy Language , Online market is trading
platform where buyer & seller meet through the website or digital market .
Here there are 2 parties as buyer and seller , buyer buy’s the good whereas
seller sell’s the good . Here there is large platform for seller to display the good
in large stock & display it through website or digitally & buyers get large variety
of product to buy it . Here through the process at the time of payment , buyer
gets 2 options to make a payment as Cash on Delivery or online payment .
when buyer selects the online payment option , Third party comes into the
picture i.e bank intermediary for the Payment process .

3 . Definition of Offline Market :


Following are some of the advantages of e-Marketing:
 Extremely low risk
 Reduction in costs through automation and use of electronic media
 Faster response to both marketers and the end user
 Increased ability to measure and collect data
 Opens the possibility to a market of one through personalization
 Increased interactivity
 Increased exposure of products and services
 Boundless universal accessibility

Following are some disadvantages of e-Marketing:
 Dependability on technology

 Security, privacy issues
 Maintenance costs due to a constantly evolving environment
 Higher transparency of pricing and increased price competition
 Worldwide competition through global

With the growth of technology, it’s crucial that you have an effective Internet marketing plan
in place. Internet marketing helps you continue to grow your business. Here are seven
reasons why marketing is so important.


Internet marketing is so important because your customers are online. Considering that
over 4.2 billion people are on the Internet, it’s a great opportunity for you to reach leads
that are looking for your business. There are billions of people online just waiting to find
your company.

People use the Internet to find all types of information. They’re constantly conducting
searches to find relevant information about businesses, products, and services. By
investing in Internet marketing, you’re helping your company reach those interested leads.

As a marketer, you want to reach potential customers where they live, work, shop, get
information, and seek entertainment. All of this is wrapped up in one place: The Internet.

Even if you operate locally, your audience is online. That’s why organizations in the
healthcare sector, like hospitals, orthopedic surgeons, and more use Internet marketing to
promote their services and expand their care.

Internet marketing online is valuable to your business because it helps you connect with
leads that are the most interested in your business.


With traditional advertising, the communication is one-way. You create a TV ad or print ad

in a newspaper, and that’s it. You wait and hope that your audience will see your ad and
visit your business.

So, what happens if your audience has questions or concerns? What if they want to learn
more about your business, product, or service? It’s a hard task to complete when you don’t
have a two-way conversation.

The importance of Internet marketing lies in the ability to create two-way communication.

You provide clients with a way to contact your business. Whenever you create a social
media post, run a pay-per-click (PPC) ad, or create any form of marketing material, you
create the opportunity for people to contact your business.

You can reach customers through several digital marketing channels. If someone sees
your PPC ad and has questions, they can find your contact information and reach out to
you. They can call, chat, or email your business with questions.

This helps you build a relationship with your audience. You get to know them and open the
door of communication for them. It makes them feel more welcomed by your team and

This is valuable to your audience because they want to be seen as more than just a
number. Customers want to be valued and know that their business matters to you. They
choose companies that value them as an individual.

When you have two-way communication, your audience doesn’t view it as you trying to sell
them things. Instead, they will see you as a valuable source of information that helps them
in the purchasing process.

By building a relationship and opening communication with your audience, you increase
their likelihood of becoming customers. It also increases the chances that they will become
repeat customers.

Internet marketing is important because it helps you communicate better with your


As we stated previously, your audience wants to feel like they matter to your business.
They don’t want to just be another number. Effective Internet marketing creates a custom
experience for each member in the audience.

Personalized marketing enables you to customize your audience’s experience. You can
create a tailored experience that fits their interests best.

When people find your business, they’re going to come to your company for different

Some people are interested in one type of product, while others are interested in another
type. Personalizing these customers’ experiences to their interests creates a better
experience for them.

It’s best to create multiple, personalized marketing pieces than one, general marketing

The ability to personalize your marketing strategy is why Internet marketing is so important
to your business. It helps you deliver a better experience for your leads, which turns them
into customers.


One of the biggest hurdles with traditional advertising is obtaining interested leads.

When you use traditional advertising, you don’t know how many valuable leads you will
reach. Your advertisements appear in front of interested and uninterested leads, which
makes it difficult to drive an abundance of quality traffic.

Internet marketing is important because it helps you drive more qualified traffic. You reach
more leads that are interested in your business. The ability to target specific leads helps
you drive traffic that takes interest in your company.

You can target leads specifically by different characteristics.

Internet marketing allows you to target by demographic information, socioeconomic status,

hobbies, interests, or spending habits. You can get very precise with your targeting to
ensure that you’re only reaching leads you know will be interested in your business.

Effective Internet marketing will help you reach the right leads at the right time.


When you want more people to check out your business, you must increase your
business’s visibility. It can be challenging to do this through offline tactics because you
don’t have much control over who sees your marketing materials .With online marketing,
you expose your business to hundreds of people .The Internet is constantly marketing for
your business. People can access your website or your social media 24/7. This means that
your business is visible to your audience at all times.

In addition, you can use other digital marketing methods to reach your audience and
increase your brand’s visibility. A few strategies include content marketing, social media
marketing, and even video marketing.

Brand visibility means that more people are getting familiar with your business .When
people are more familiar with your business, they’re more likely to choose your business
when they’re ready to convert. People choose brands they’re familiar with, so this brand
exposure guides them towards choosing your business when they’re ready to convert.


The importance of online marketing also includes its ability to run multiple campaigns at
once. The Internet makes it easy for you to take on a high level of customers and provide
them with a quality experience.

You can handle millions of customers at one time when they’re on your website. Your
website can take on multiple transactions, which allows you to obtain more conversions for
your business. It’s a great opportunity to grow your business.

In addition, you can run multiple marketing campaigns at once. This means you can reach
leads through multiple channels at the same time, maximizing your business’s reach. You’ll
earn more valuable leads by investing in Internet marketing.


If you want to remain in competition with your competitors, you must invest in Internet
marketing. Your competitors are already investing in different Internet marketing methods
and working to obtain new leads.

If you aren’t investing in Internet marketing, you’re falling behind your competition.To keep
up with your competitors, you must establish an effective online marketing campaign. It will
help you obtain leads and prevent you from losing them to your competitors.


Throughout the business world, there are numerous types of businesses that operate
on a strictly seasonal basis, while many others stay open year-round but make a
significant portion of their annual profits in one, or possibly two, seasons. Examples
include vacation resorts, which in some regions are only open for part of the year
(spring and summer in the northern , fall and winter in the southern half of the
country); cross-country and downhill skiing facilities; youth summer camps; lawn care
and landscaping firms; golf courses; and sports leagues, from amateur all the way to
the top professional leagues. Smaller-scale examples include snow removal
services, pool cleaning services (in the northern U.S.), ice cream stands, golf driving
ranges, and drive-in movie theaters, just to name a few.

If it is feasible, a business that relies heavily on one season tries to at least make
some money during the remaining months of the year. If it absolutely cannot turn a
profit, then the business often closes during its off-season to avoid paying employees
and to reduce the cost of supplies and overhead. For example, ice cream shops
other than those located inside shopping malls simply close for the winter once the
temperature dips down to the freezing level. On the other hand, some lawn care
businesses in the may attempt to put their equipment and machinery to use during
their off-season by cultivating a snow removal service in the winter months.

Seasonal businesses can change drastically or even disappear as the demographics

of a region or country change. An example of this phenomenon is the drive-in movie
business, which in the 1950s and 1960s was thriving across the United States and

Canada as a popular social event. By the 1990s, the advent of the VCR and the spread
of plush, comfortable indoor "movieplexes" had all but vanquished the driveins. Adding
to their demise was the fact that most people realized that, as urban growth occurred,
the vast amount of land on which a drive-in was located was far more valuable for real
estate development than it was for a seasonal business.

The movie industry remains one of the largest industries in the world driven by
seasonal buying habits. The two biggest seasons of the year for the movie industry
are summer and rainy. Movie theaters do not shut down like some other seasonal
businesses, but they hire extra employees for those two seasons and create budgets
that reflect the dominance of those two seasons. Each year, the movie studios' most
important releases are planned for those two times of year. High-budget, wide-appeal
movies that have blockbuster potential are usually released in the summer,or during
festivals like eid , Diwali etc. Around Christmas, the studios release serious pictures
expected to gain Academy Award attention together with big-budget films that are
aimed at the entire family.


For truly seasonal businesses, there are often situations beyond the business's
control that cause sales to fluctuate wildly each year, with almost no way to predict
what will happen in any given year. Perhaps the best example of this, in cold
climates, is the amount of snow that falls. Snowfall levels can affect any number of
businesses, from ski resorts to hardware stores that sell snowblowers, salt, and
chemical de-icers. (The reverse of this situation for summer resorts is a summer that
is colder and rainier than usual.) One winter can be extremely snowy, while the next
can see almost no snowfall, with very little chance of consistently predicting which
way a winter will turn out in advance.

Some businesses use this uncertainty to their advantage, offering unique sales
pitches revolving around the snow, or lack of it. For example, it is not unusual for a
creative hardware store to run a special on snowblowers late in the fall. As a gimmick
to lure buyers, the store offers to refund the entire purchase price of a new
snowblowers if a certain amount of snow does not fall that winter. If the snow does

fall, then all sales are final, and the merchant was able to sell all his snowblowers at
full price.

If the snow does not fall, then the merchant normally has taken out a special
insurance policy that will cover most of his or her losses from the special sale, which
has now turned out to be a worst-case scenario. Businesses that offer this kind of
seasonal gimmick usually do their homework before they make what seems to be an
outlandish offer. For example, the hardware store owner might know from studying
statistical data that only twice in the last 100 years has the designated amount of
snow not fallen, and therefore his odds of having to pay for the customers'
snowblowers are extremely slim.


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 important to any business but
for companies whose cash flow fluctuates dramatically from one period to the next
this task is especially critical. Cash flow management does not need to be
mysterious or complex. Cash flow management is, quite simply, all about timing cash
inflows and outflows. Since a seasonal business can anticipate the inflows being
heavier during one period than in others the key is to match the outflows to the same
period as much as possible and create reserves to use during the off-season.

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. Knight-Ridder/Tribune Business News documented the
case of Todd Binford, who owned a landscaping soil and stone company. Through
the years Binford learned from his mistakes and determined how to manage money
during his slow season. Tricks he used include not paying himself a salary during the
winter months; paying employees well and letting them work 60 to 80 hours in the
summer, then dismissing them each winter instead of paying them lower amounts to

work 40 hours year-round; and rearranging bills so that most can be paid in the
summer. "You just get used to trying to save money instead of spending every
paycheck," said Binford

Finding and keeping good employees is another key to succeeding in a seasonal

business. Paying well and creating a positive work environment are obvious ways to
gain good employees, but there are other tactics a small business owner can use.
Keeping employees informed of how the seasonal shift affects the company is a
good idea, as the employees feel as if they matter more and are an important part of
the business. It also helps employees identify the best time to take a vacation. When
hiring new employees, two sources of good seasonal employees should be kept
foremost in mind—students and retirees. Students are perfect for summer jobs
because their time off from college matches the business's busy season perfectly,
and most students need to earn money in the summer to pay for school in the fall.
Retirees tend to make good employees because they may have years of experience
in their field, but they no longer desire to work full time. Therefore, a job that lasts a
few months each year is perfect.

One other tactic that seasonal business owners can use to succeed is to expand
their business to include a new product line that is seasonal in the opposite way as
their original line. For example, a lawn and garden company that sells lawn mowers
and offers mowing and landscaping services can add snowblowers to their product
mix and offer snow removal services to complement their landscaping services. The
new product should be similar to the existing product so that an owner does not have
to learn a brand new business or invest a great deal of money.


The retail sector is one that tends to be very sensitive to seasonal fluctuations. This
type of seasonal business is driven by holidays or events that greatly influence
consumer spending. Christmas/Diwali is by far the largest holiday that creates
seasonal shopping. In fact, it is not unusual for many retail businesses to see sales
rise by 15 percent above normal monthly sales in October to December and then
drop 30 percent below normal monthly sales in January each year. Other examples

of event- or holiday-based seasonal periods include Halloween, Mother's Day,
graduation, and back-to-school. These events are held at the same time each year,
which makes it easy for a businessperson to establish an annual schedule.

Preparing for a seasonal event often begins months in advance of the event itself.
For example, Discount Store News reports that in the past few years have steadily
become more aggressive in their pursuit of the Back-to-School seasonal business.
Almost as soon as school lets out for the summer, the superstores begin setting up
merchandise displays in advance of television commercials touting superstores as
destinations for Back-to-School shopping." Another example of this phenomenon is
Christmas sales, which seem to start earlier and earlier with each passing year as
stores try to expand the selling season and turn a greater profit. In the past,
Christmas sales traditionally started on Thanksgiving weekend. Now, in most stores,
the day the Halloween decorations come down, the Christmas decorations go up

1.5 Make it a year round responsibility

For a businessperson who is used to working in traditional year-round occupations,

the switch to a seasonal business might seem to require the use of different business
practices. While there are a few things that will always be different, the changes can
be minimized by treating the seasonal business as a year-round business. The
business owner should take advantage of the downtime to make improvements to
the business, attend industry seminars or conferences, recruit new employees, or
other off-season activities.

In Nation's Business magazine, the experiences of an annual summer camp called

Camp Echo Lake in upstate New York show how a seasonal business should be run
year-round. At Echo Lake, the camp for 450 campers lasts only eight weeks during
the summer. During that time, the camp employs 200 people. That leaves 44 weeks
for owners Tony and George Stein to fill before the camp opens again. To make the
most of their business, the brothers have devised a business plan that allows them to
work on the camp all year. Following are some methods they recommend:

After the camp ends in August, the Steins prepare a newsletter for parents that is
mailed in September; the letter provides a summary of the year's activities and
highlights what campers can expect the following year.

During the winter months, the Steins study new literature on their industry, learning
about new classes they can offer and new ways to market and promote the camp.
Physical improvements to the camp are also made in the off-season.

They set up installment payment plans that allow parents to pay the camp tuition
year-round. This makes it easier for parents to pay and ensures that the camp will
have steady cash flow all year.

Additional cash is brought in by hosting off-season events, such as training camps

for college athletic teams and wilderness getaways for adults and families.

The business owners also use the downtime to make sure that they hire the best
possible staffers. Instead of filling staff positions in the few weeks leading up to the
start of camp, the Steins hire a recruiter who begins interviewing candidates all the
way back in May.

1.6 Non Annual Events

The most extreme examples of holiday or event-based seasonal businesses are
those involving a once-in-a-lifetime "season," or one that is almost equally rare. An
extreme example of this could be a type of solar eclipse that might be visible only
from one-third of the Earth's surface and that will not occur again for 120 years.
Tourism-related businesses in those regions where the eclipse was most visible
could expect a large boost in bookings over a normal year, even if that boost might
only last a single day (or several days at the most).

Just as sometimes happens in true seasonal businesses, events of this type can
sometimes be ruined by actions that are out of the business owner's hands. Some
insurance companies even offer a policy to businesses that protects them from
unexpected losses if the unique event does not occur as planned. In the case of the
eclipse, for example, if the day of the big event turns out to be overcast and rainy in
the viewing area, then the expected increase in tourists that was hoped for on that
day will never materialize. Money spent on advertising or increased inventory for that
day could be recouped under the terms of the special insurance policy.

Perhaps the largest single "unique event" type of seasonal opportunity in history
presented itself at the end of 1999, as businesses around the world prepared for the
New Year's Eve that would signal the start of a new century (although the twenty-first
century technically started on January 1, 2001, people generally celebrated the event
as the calendar rolled to 2000). In addition to all of the worldwide panic over the Y2K
computer bug, which created an almost "seasonal" event of staggering proportions
for the computer industry, there was additional fallout from that one-time event in
many business sectors. In the hospitality profession, for example, the initial reaction
of hotels and restaurants was to charge exorbitant prices for special room and meal
packages that evening. The thinking was that because the event was so unique,
people would pay anything to experience it. In fact, just the opposite turned out to be
true. Most people, worried about the computer problem and put off by the high
prices, chose to stay home that night. Hotels, restaurants, and other businesses
were left scrambling, desperate to drum up any amount of business at the last
minute; many were forced to offer refunds to customers who purchased their
packages early in the process.

1.7 Seasonal Business in India can be classified into the

following categories

1) As per Seasons

There are four climatological seasons with some local adjustments

a) Winter ( December ,January , February ) : A few business that can be

carried out during Winter season are as follows , coffee service, hot soup
business, organic lip balm , Christmas tree farm, liquor delivery service,
fashionable winter wear, homemade Christmas sweets delivery service, etc .
b) Summer ( March , April , May ) : A few business that can be carried out
during Summer season are as follows ,Coconut based business , fresh fruit
juice making business , ice cream making , raincoat manufacturing , umbrella
assembling , sugarcane juice business , swimming pool services , cooler/Ac
repair and sales service, etc
c) Monsoon ( June , July , August , September ) : A few business that can be
carried out during Monsoon season are as follows , coffee services , fast food
snacks corner selling hot and fresh snacks , umbrella and raincoat selling, fish
hatchery, car wash services, motor vehicle repair and maintenance services,
pest control services ,etc
d) Post Monsoon ( October , November ) : A few business that can be carried
out during the Post Monsoon season are as follows mud diyas , fire crackers,
ethnic wear ,etc.

2) As per festive seasons

India is a diverse country which consist of various festivals from different religions
and culture few examples are :

a) Holi :Holi , often referred to as the "Festival of Colors", is one of the best
known festivals outside of India. The festival is centered around the burning
and destruction of the demoness Holika, which was made possible through
unwavering devotion to Lord Vishnu. However, the really fun part involves
people throwing colored powder on each other and squirting each other with
water guns. During this time water balloons , water guns , playing colors are
sold in high quantity
b) Ganesh festival : The spectacular 11-day Ganesh Chaturthi festival honors
the birth of the beloved Hindu elephant-headed god, Lord Ganesha. The start
of the festival sees huge, elaborately-crafted statutes of Ganesh installed in
homes and public podiums, which have been beautifully decorated. The
statues are worshiped everyday throughout the festival. On the last day,
they're paraded through the streets, accompanied by much singing and
dancing, and then submerged in the ocean. The best place to experience it is
in Mumbai. During this time flower garlands , Puja equipments , house
decorations, decorations for ganpatimandap, fire crackers, etc are sold in high
quantity .

c) Navratri, Durga Puja and Dussehra :The nine days of the Navaratri festival
honor the mother goddess Durga in all her incarnations. The tenth day, called
Dussehra, celebrates the defeat of the demon king Ravan by Lord Ram and
monkey god Hanuman. It also coincides with Durga's victory over the evil
buffalo demon Mahishasura. In eastern India, the festival is observed as
Durga Puja. It's the biggest festival of the year in Kolkata. Huge statues of the
Goddess Durga are made and immersed in the river there. During this time
Music system, Ethnic wear for men and women, costumes for the fancy dress
competition taking place on the last day of navratri , flower garlands , playing
colors , jewelry accessories for women etc are sold in high quantity.

d) Diwali :Diwali honors the victory of good over evil and brightness over
darkness. It celebrates Lord Ram and his wife Sita returning to their kingdom
of Ayodhya, following the defeat of Ravan and rescue of Sita on Dussehra. It's
known as the "Festival of Lights" for all the fireworks, small clay lamps, and
candles that are lit. For most Indian families, Diwali is the most anticipated
festival of the year. During this time people buy different types of diyas ,
lightings , lantern (kandils) , rangoli colors, house decorations,but most
importantly crackers in high quantity.
e) Krishna janmashtami (govinda) :Krishna Janmashtami, also known as
Govinda, commemorates the birthday of Lord Krishna. An extremely fun part
of the festival involves teams of guys climbing on each other to form a human
pyramid to try and reach and break open clay pots filled with curd, which have
been strung up high from buildings. This activity, called dahihandi, falls on the
second day. It's best experienced in Mumbai. During this time mud pots,
ropes, curd , lord Krishna costumes for kids , gifts ,etc are sold in high
f) Makar sankranti :Makara Sankranti, is a festival day in the Hindu calendar,
dedicated to the deity Surya (sun). It is observed each year in January.[4][5] It
marks the first day of the sun's transit into the Makara (Capricorn), marking
the end of the month with the winter solstice and the start of longer days. In
this festival rural children go house to house, singing and asking for treats in
some areas , melas (fairs), dances, kite flying. During this times Kites are sold
in high quantity .
These were few examples of festivles in India during which seasonal business can
be carried out.


The festive period is a short one, and so seasonal businesses have little time for
restocking or ordering in items

Therefore, the majority of businesses face a substantial cash outlay to acquire stock
before making any sales. This is a huge risk as these businesses basically put it all
on the line in the hope that it pays off.

1. Cash Flow

On one hand, you likely scale back on expenses such as marketing, advertising, or
payroll during the off-season. On the other, you may still have ongoing expenses like
equipment rental costs or a lease.

To get a realistic idea of what expenses to budget for, talk to professionals in your
line of work, suggests Jane Barnes. Finding ways to extend your season — for
instance, a landscaping business could offer snow removal in the winter — can even
out cash-flow issues and help keep your staff busy in the off-season but then you’ll
have to cover payroll.

In a pinch, some seasonal businesses tap into their line of credit, though Bob
McGowan, a professor of management at the Daniels College of Business at the
University of Denver, says this shouldn’t become a habit.

2. Hiring

Hiring and retaining part-time workers is challenging enough, but when you only pay
for them for part of the year, building a sense of loyalty is even tougher. “If they’re
good workers, you want them to come back next year,” Barnes notes. “Turnover is a
major problem with most companies. Motivate employees, give them incentives, and
make them feel like they’re part of the organization. Make them want to come back,
so you don’t have to spend as much time, energy, and money hiring new people.”

If you can afford it, consider offering returning workers higher pay than new hires.
Veteran employees may be ready to take on more responsibility since they already
know the ropes.

3. Inventory Management

Storing excess inventory for a full year is not ideal for most businesses due to its expense, the
following year is not ideal for most businesses — and if you deal in perishable goods, it’s
often impossible.

“There’s an art to managing inventory,” McGowan says. “I would look at something similar
you’ve ordered before and use that as a proxy. Try to get something that’s a close
approximation to what you’ve done in the past, unless fashions change significantly from
year to year.” For instance, if last year’s iPhone covers were a popular stocking stuffer, make
sure you order plenty of covers that fit the iPhone 5.

If you are left with excess inventory toward the end of the season, you can decide if it’s worth
holding an end-of-season fire sale to get rid of the goods or storing them for next year.


Tightly budget and forecast

For a business like this, budgeting and forecastingis very important. The majority of
sales come in October, November and December, so they need to carefully balance
sales against costs in the earlier parts of the year.

Unfortunately, it's only really experience that can teach you this, unless you have
business advice - there's no magic formula. But without accurate planning, or
understanding your customers, the first ten months of the year could be much more
difficult in cash flow terms than they are.

Diversify the offer during quieter periods

While there will always be customers who are buying throughout the year so they
can spread the cost of Christmas, you need to make the most of opportunities like
the tourist trade that kicks off in earnest at the beginning of July, to keep sales up
during the off-season months.

Some tourists buy Christmas-related items because they don't think they'll be able to
get them at home. But why not also stock a range of cards, gift wrapping and general
giftware so that tourists and passing trade can buy, whatever the time of year?

Concentrate on strong, traditional British or local brands, with the tourist trade
particularly in mind. Those visiting the area want something that is synonymous with
their visit – give them that.

Build a strong relationship with suppliers

We cannot stress the importance of building excellent relationships with key

suppliers enough. It will take a great deal of time, but it will be well worth it.

Like most retailers, the bulk of ordering is done in January and February. You can
differentiate yourself by taking your stock immediately, rather than in early
September. This helps suppliers save warehousing and storage costs, which gives
you the bargaining power to negotiate favourable payment terms, as well as putting
priority on a further stock order should you need one in the short festive window.

It's obviously good for you - but it's good for the suppliers too. You can only do the
above because you’ll have built up a relationship and a reputation for paying on time
and building mutual trust.

Build additional channels early

With the peaks and troughs in cash flow that go hand-in-hand with seasonal
businesses, it’s vital that you diversify at the earliest stage possible and give your
business the greatest chance of success.

One option would be to import and wholesale Christmas goods. This would put you
in more of a supplier role, thus shifting your focus from customers on the street to
seasonal business owners around the country or world.

Wholesaling means that you are depending on the demand of seasonal businesses,
rather than trying to predict the demand trends of shoppers, which overall should
reduce the risk associated with this channel of your seasonal business.

Don’t underestimate the power of the internet and e-commerce. Just because your
business is centred around three months of the year, doesn’t mean it has to be run
solely in a traditional market stall or temporary shop style.

Opening an online shop can generate valuable additional trade from across the
world, all year round. With the additional help provided by social media and email,
marketing your product and getting your website out there has never been more
achievable and cost-effective.



Small businesses operations, fundamental to the Indian economy, face challenges

related to profit and growth. Some small seasonal businesses struggle with market
uncertainty and instability and lack strategies to improve organizational growth as a
means of surviving market changes. Small, seasonal businesses face further
challenges in capturing customer loyalty over a briefer period and, year after year,
must generate enough profits to sustain the company. Research related to the
effects of small seasonal business partnerships with local companies is sparse.
Some scholars suggested that small seasonal business owners who collaborate with
local community initiatives and charities, may experience a richer sense of purpose
to the community, fuel customer loyalty, and improve profits. One strategy for
improving community relations is cause-related marketing, which involves
sponsoring businesses to donate to a chosen charity or cause with consumer

The purpose of this qualitative case study was to explore what strategies seasonal
small business owners may use to collaborate with local associations and charitable
organizations to increase profits.

The targeted population was comprised of small seasonal business owners.

Knowledge gained from the study may help other small seasonal business owners
learn community-building strategies Seasonal business owners can use effectively in
their own businesses. Developing community relationships generates social capital,
enhances the social fabric by uniting common philosophies between society and
business toward a common goal, builds competitive advantage, and fortifies
employee job satisfaction.


Financial management is an organic function of any business. Any organization
needs finances to obtain physical resources, carry out the production activities and
other business operations, pay compensation to the suppliers, etc. There are many
theories around financial management:

1. Some experts believe that financial management is all about providing funds
needed by a business on terms that are most favorable, keeping its objectives
in mind. Therefore, this approach concerns primarily with the procurement of
funds which may include instruments, institutions, and practices to raise
funds. It also takes care of the legal and accounting relationship between an
enterprise and its source of funds.
2. Another set of experts believe that finance is all about cash. Since all
business transactions involve cash, directly or indirectly, finance is concerned
with everything done by the business.
3. The third and more widely accepted point of view is that financial
management includes the procurement of funds and their effective utilization.
For example, in the case of a manufacturing company, financial management
must ensure that funds are available for installing the production plant and
machinery. Further, it must also ensure that the profits adequately
compensate the costs and risks borne by the business.

In a developed market, most businesses can raise capital easily. However, the real
problem is the efficient utilization of the capital through effective financial planning
and control.

Further, the business must ensure that it deals with tasks like ensuring the
availability of funds, allocating them, managing them, investing them, controlling
costs, forecasting financial requirements, planning profits and estimating returns on
investment, assessing working capital, etc.

Objectives of Financial Management

The financial management is generally concerned with procurement, allocation and
control of financial resources of a concern. The objectives can be-

1. To ensure regular and adequate supply of funds to the concern.

2. To ensure adequate returns to the shareholders which will depend upon the
earning capacity, market price of the share, expectations of the shareholders.
3. To ensure optimum funds utilization. Once the funds are procured, they
should be utilized in maximum possible way at least cost.
4. To ensure safety on investment, i.e, funds should be invested in safe ventures
so that adequate rate of return can be achieved.
5. To plan a sound capital structure-There should be sound and fair composition
of capital so that a balance is maintained between debt and equity capital.

Importance of Financial Management

Financial management is process of framing objectives, policies, procedures,

programmes and budgets regarding the financial activities of a concern. This
ensures effective and adequate financial and investment policies. The importance
can be outlined as-

1. Adequate funds have to be ensured.

2. Financial Planning helps in ensuring a reasonable balance between outflow
and inflow of funds so that stability is maintained.
3. Financial Management ensures that the suppliers of funds are easily investing
in companies which exercise financial planning.
4. Financial Management helps in making growth and expansion programmes
which helps in long-run survival of the company.
5. Financial Management reduces uncertainties with regards to changing market
trends which can be faced easily through enough funds.
6. Financial Management helps in reducing the uncertainties which can be a
hindrance to growth of the company. This helps in ensuring stability an d
profitability in concern.

Managing Finances In Seasonal Business.

Keeping finances in check is a challenge for every business owner. In fact, financial
challenges represent the number one reason that small businesses fail—including
businesses that are on track for long-term profitability.

No matter how successful your business is on paper, if you don’t have the necessary
cash on hand when rent or payroll is due or when you need to make your next
inventory order, your business can’t survive.

For businesses whose revenue streams face strong seasonal ups and downs,
however, this challenge is an altogether more difficult one to address. It requires
extreme diligence, preparedness, and an awareness that things won’t always go
according to plan.

Seasonal business owners carry the responsibility to be far more organized and
disciplined than their peers in order to account today for challenges and opportunities
that may arise as much as 8 to 12 months down the road. That’s just not an issue
that year-round business owners typically have to deal with.

There is some good news to this challenge, however. Seasonal business owners
who master cash flow management under these difficult circumstances are poised to
build some of the most financially healthy businesses around.

To help you master the financial management mystery for your seasonal small
business these are few tips that will help you plan ahead.

Evaluate Your Financial Needs

The key to financial success for any seasonal small business starts with an in-depth
analysis of your cash flow situation. Until you fully understand how and when money
flows into and out of your business throughout the year, any steps you take toward
better cash flow management are ultimately just a guessing game.

Before anything else, properly managing your cash flow should start with putting
together two key financial documents: your statement of cash flow and your expense
forecast statement.

Preparing Your Statement of Cash Flow

Unlike your business balance sheet or profit and loss statement—each of which only
represent a given point in time—a cash flow statement shows how and when money
flows into and out of your business over a longer period.

If you’ve never prepared a cash flow statement for your business before, it’s a good
idea to review past income and expenses over the course of at least an entire year—
and ideally for the past two to three years whenever possible.

Some accounting software programs offer cash flow statement among their reporting
options, or you can use Fundera’s ready-made cash flow analysis template to
generate your own cash flow statement.

Preparing your business’s first cash flow statement can be time-intensive process, so
it’s a great chore to take care of during your business’s offseason. But once you’ve
done the work to create this document for the first-time, it will be easy to maintain in
the future—and the knowledge you gain can make the difference between success
and failure for your seasonal business.

Forecasting Your Seasonal Business Expenses

Once you have a detailed record in hand of your business’s cash flow ups and
downs from years past, you’ll be much better equipped to forecast the expenses that
are likely to arise over the course of your next offseason.

In many ways, your expense forecast statement will look very similar to your cash
flow statement. The main difference? Your statement of finance is an analysis of past
transactions, whereas a forecast is by definition an educated guess about what you
can expect from your cash flow needs in the future.

As you create your expense forecast, pay special attention to pre-season expenses
that will arise just before your busy season starts, such as inventory purchases or
early staffing requirements.

This is often the time that a seasonal business’s expenses are highest, and because
it’s the time farthest out from your last high season, it might also be the point when
cash flow reserves have hit their limit. Anticipating and setting aside separate funds
for these preseason expenses will help you avoid running out of capital in those last
weeks before sales volumes rise again.

Establish an Emergency Fund

Planning for the unexpected as a seasonal business owner starts with an earmarked
emergency fund. At minimum you should set aside one month of average business
expenses—and many cash management experts recommend working toward a
three-month emergency fund.

Include Contingencies in Your Budget

Entrepreneurs are notoriously optimistic bunch. In many ways this is good news, as it
allows seasonal small business owners to endure the ups and downs of day to day
operations without becoming overly discouraged. That said, this natural optimism
can also lead small business owners to consistently underestimate future expenses
while overestimating future sales volumes.

That’s why, upon completing your business’s expense forecast, it’s a good idea to
add in a contingency category equivalent to 20% to 30% of your total expenses.
Whereas your emergency fund is designed for large and one time unexpected costs,
this contingency budget will account for the nicks and cuts of small expense
increases caused by inflation, increased shipping costs, or price changes on certain

Diversify Your Business for Off-Season Income

Planning ahead and minimizing expenses can go a long way toward better managing
cash flow for your seasonal business—but at a certain point, there is simply no
replacement for having multiple streams of revenue. How could you diversify your
products or services in order to balance out income between high and low seasons?

For a hospitality business in a seasonal tourist location, that could mean doubling as
a conference or retreat center during the slower months. If you have a seasonal
service business, think about complimentary services for which there may be more
demand during slower months of the year.

And remember, your secondary income stream doesn’t necessarily have to be

directly related to your core business and brand. Launching a subsidiary or even an
entirely separate second business could allow you to make use of the same team,
skill sets, and resources in a completely different way.

There’s no denying that when it comes to cash management, seasonal small

business owners have a unique set of challenges to contend with. But if you can do
the work during your offseason to conduct a thorough cash flow analysis and
forecast, line up your savings and contingency financing options, and look for ways
to balance out off season revenue and expenses, you have the potential to build a
business poised for a long-term growth and sustainability.


A convenience sample of small businesses was generated by the Small Business

development center (SBDC) in a northeastern state. The sample consisted of 507
seasonal businesses which had been clients of the SBDC during the prior two years.

A mail questionnaire was used to collect data. Three timed mailings were used
following the surveymailing methodology recommended by Dillman, Smyth, &
Christian (2008). Respondents received a letter from the SBDC state director
informing them that they would be receiving a survey in a few days. The survey was
mailed several days later with two cover letters, one from the SBDC state director
and one from the principal investigator. Two weeks later, replacement surveys were
mailed to those respondents who had not replied to the initial survey mailing. One
hundred four surveys were returned yielding a response rate of 20.5%, with 73
usable questionnaires.

Respondents’ reported business types were retail (32%); arts, entertainment, and
recreation (22%); wholesale (15%); restaurant (12%); agriculture, forestry, hunting,
and fishing (9%); tourism-related (6%); lodging (4%). Average annual sales ranged
from $0 to $49,000. The number of employees ranged from none (33%) to 20 or

more employees (5%). Between these extremes, slightly more than a third (38%) of
respondents had two to five employees, a fifth (15%) had six to ten employees, 6%
had 11-15 employees, and 3% had 16-20 employees.

Results: Results on the timing and duration of seasonal phases, reported causes of
seasonal sales fluctuations, and actions taken to manage sales fluctuations within
each phase are reported here.

(To avoid confusion, the seasons within seasonality with be referred to hereafter as phases:
the busy phase, the shoulder up phase, the shoulder down phase, and the slow phase.)


Table 1 presents each of the twelve calendar months across the four phases of
seasonality (i.e., Shoulderup, Busy, Shoulder down and Slow), showing the percent
of respondents who categorized a given month into a specific phase as they
experience it in their business. The month most frequently categorized within each
phase was, respectively: June (53.4%) in the Shoulder up Phase, August (63%) in
the Busy Phase, October (31%) in the Shoulder down Phase, and February (54%)
in the Slow Phase.

Table 1 Phases of seasonality.

Months Shoulder Up Busy Shoulder Down Slow
January 5.55% 6.8% 29.6% 44.6%

February 6.8% 8.2% 15.5% 54%

March 8.2% 8.2% 12.7% 52.7%
April 23.3% 9.6% 8.5% 41.9%
May 39.7% 12.3% 7% 31.1%
June 53.4% 23.3% 11.3% 13.5%
July 30.1% 57.5% 14.1% 14.9%
August 26% 63% 4.2% 10.8%
September 21.9% 37% 25.4% 9.5%
October 17.8% 30.1% 31% 17.6%
November 20.5% 30.1% 25.4% 16.2%
December 13.7% 37% 21.4% 21.9%

Figure 1: Timing of the Shoulder Up Phase, Percent of Responses by Month (N = 73)

Figure 2: Timing of the Busy Phase, Percent of Responses by Month (N = 73)

Figure 3: Timing of the Shoulder Down Phase, Percent of Responses by Month (N =


Figure 4: Timing of the Slow Phase, Percent of Responses by Month (N = 73)

The results of this study show that the phases of seasonality for the businesses sampled
generally conform to the calendar year - with the Shoulder up Phase culminating in late
spring, the Busy Phase peaking in summer, the Shoulder down Phase in the fall, and the
Slow Phase in winter and early spring (see Figures 1-4). Business size and type likely are
factors that influence this observation. Although less than a tenth of respondents’ businesses
were categorized as tourism-related, the sales of small retail, arts-entertainment-recreation,
wholesale, hospitality, and traditionally outdoor businesses like farming all can be impacted by
weather and climate


The research activity in financial management gained momentum in India only from
I960. Sincethen, academicians, researchers and .practitioners have contributed
many thought-provoking studies,which come in the form of books and articles .

An attempt is made to present an overview of the research activity carried out in the
aspects that have relevance to the present study. One of the main segments of
corporate financial behavior is the study of financial trends in individual business
units and industries.

In this context, SoorajBabuChoudhary and D.C. Jain made an analytical study of

the financial performances in Indian environment. Besides, Saxenaanalysed the
financial behavior of Delhi Cloth and General Mills Co. Limited and Kaura and
Subramanyam studied the financial performance of selected Indian cement
industries based on the cause-and-effect approach.

Koenig & Bischoff, 2005; Moore, 1989. Seasonality of demand is the movements
in a time series during a specific time of year.Kennedy & Deegan, 2001 Seasonality
involves seasons within seasonality: the peak season, twoshoulder seasons and the
off-peak season.Radas&Shugan, 1998 Businesses may have one or more busy
phase during which they will incur a significant percentage of their total annual
sales.Koenig & Bischoff, 2005; Spencer &Holecek, 2007As noted in our
introduction, the swings in sales and business operations inherent in seasonality may
give rise to slow or lost sales, unpredictability of business conditions, and cash flow
problems, affecting small business profits and a region’s overall employment
picture.Allock, 1994; Becken, 2012; Cho, 2009; Hylleberg, 1992 Seasonality
results from both natural and institutional causes. These may include factors such as
weather, timing of holidays, school vacations, and the tax year. Though it frequently
is related, seasonality thus is not always tied to the seasons of the year found in
nature (i.e., spring, summer, fall, and winter).
Ashworth & Thomas, 1999; Cuccia& Rizzo, 2011The primary management actions
suggested to mitigate seasonality include increasing demand outside of the busy
phase(s), market diversification, and pricing. Increasing demand outside the busy
phase can include strategies such as scheduling events to draw customers,
increasing advertising, or running promotions. Market diversification might involve
finding alternative uses for the business’s capacity during the phases other than the
busy phase. Examples include actions such as using a landscape truck (a summer
activity) to plow snow (a winter activity) or attracting retirees to vacation during the
slow phase. Pricing strategies frequently involve discounting during non-busy

Kimes& Chase, 1998; Shields, 2006; Thompson, 2010Additional strategies that

affect revenue and might be employed by small businesses to manage seasonality
are discussed in the revenue management literature.Kimes& Chase, 1998;
Thompson, 2010 Revenue management is a practice that involves the management
of demand and price in order to maximize sales revenues from capacity.Kimes,
Barrash, & Alexander, 1999; Thompson, 2010In restaurant revenue management,
restaurants change their procedures during periods of high demand from procedures
used during periods of low demand.Shields, 2006These changes made between
times of high business volume and low business volume include changes to prices,
space, staffing, and business hours as well as scheduling events and promotions to
draw customers. These kinds of strategies position a small business to adapt to and
manage the cyclical changes in sales by taking actions to manage their revenue by
expanding their capacity during the shoulder up and busy phases.

Seasonal Business Profits in Winter :

Instead of hibernating, some businesses liven up in winter.

Businesses that boom during winter months include snow removal services
(primarily in the northern United States), ski facilities, home improvement stores, and
hospitality industries in warm-weather destinations.

Many businesses operate on a strictly seasonal basis, while others operate

yearround but make most of their annual profit during one or two seasons. Strictly
seasonal businesses are more likely to face irregular cash-flow patterns, therefore
planning is critical for them, since they must spend money for a longer period than
money is coming in.

Many seasonal businesses can rely upon predictable events that occur every year
during the winter months that can boost their profits. November and December are
the biggest months of the year for most retailers because of the Thanksgiving,
Hanukkah, Christmas, Kwanzaa, and New Year’s holidays. January is a lucrative
month for gyms and health clubs, as people scramble to fulfill fitness resolutions.
Meanwhile, February offers the Valentine’s Day bonanza for gift shops and
restaurants and the beginning of spring break for the travel and hospitality industries.

“Predictability gives businesses an opportunity to appropriately manage expenses

because unpredictable expenses can cripple seasonal businesses,” says James
Williams, a South University instructor who teaches about the hospitality industry.

Seasonal Business profits in Monsoon:

Umbrella and rainwear makers are expecting a good business this season as
monsoon projections appear to be normal.

They are also relieved at the fall in import of cheap umbrellas from China which had
dented the domestic market for several years. According to industry players, India’s
umbrella demand is estimated between 12 and 15 crore pieces per annum, although
estimates are being put forward for the market size. Almost a fifth of the umbrellas
sold in India were imported from China three years ago and that too at very cheap


With the rupee depreciating in the last two years, there has been a fall in overall

“For umbrella making, 36 components are required and a large part of these are
imported from China, despite a fall in readymade umbrellas,” said Rajesh Chopra,
ex-president, Umbrella Manufacturers & Traders Association and founder, Sagar
Sons, an 80-year-old firm in the industry.

ShantilalChheda of Eastern Rainwear, makers of Top in Town brand, said, “Apart
from the rising cost, other issues that worry the industry are the differential rates of
GST. For cheaper and low and mid-end market rainwear made from polyester, GST
is 18 per cent while high-end goods made using nylon attracts only 5 per cent which
is largely used by upper class. This issue needs to be addressed.”

Seasonal Business profits in Summer:

Fruit Juice Businesses are high growth & very profitable business to start. You would
just need a small setup or cart or a space of approximately 100 square foot area,
electrical connection & a Commercial Juicer Machine. If you do not have an electric
connection to start with Manual Commercial Fruit Juicer’s are also available. This is
one of those businesses that can give immediate returns & does not require huge
initial capital & investment. Also, this business is capable of giving up to 2 Lakh
Rupees a month of profit if done the right way.

Lassi or buttermilk is India’s favourite summer drink & therefore it opens up a big
business opportunity for many entrepreneurs. Businessmen deals in a wide range of
commercial Lassi Making Machines that can be used for small & medium scale Lassi
Making business. A lassi making business is a highly profitable venture to start within
the northern & eastern part of the country while buttermilk is popular in the western &
southern part. Lassi is the sweet whereas buttermilk is salty. They are both very
healthy when it comes to keeping the body cool & fresh in summers & soothing the
digestive system.

Any normal summer day we all must have seen crowded Sugarcane juice stalls. This
is already a very profitable & known business in India. Gone are the days when
people used manual sugarcane machines for juice extraction. Now with a wide range
of Automatic Commercial Sugarcane Juice Machines available on our website you
can start the business with less than Rs 1 Lakh of investment. This business is
capable of fetching business owners more than Rs 50,000 a month.

Nothing beats a chocolate flavoured softy in the scorching May month summer in

India. More so if it’s priced much below Kwality walls&Amul cones, therefore you
can successfully start an ice-cream business with commercial ice-cream machines to
earn good profits every month. Ice Cream Machine comes in 3 flavours& 5 Flavours
features & weigh between 80 kgs to 200 kgs. They can also be home-delivered at
your location.

Are Seasonal business Sustainable?

There’s a widespread myth that half of all companies fail in their first year of
business. The truth, according to the Small Business Administration, is that half
make it to the five-year mark — and the longer a business’s doors stay open, the
less likely they are to ever close.

But another myth persists: Seasonal businesses suffer most of all. Seasonal
Business Administration’s data doesn’t bear this out, showing companies across
varied industries tend to follow similar patterns in terms of failure.
Manufacturingbased businesses, for example, are no more protected from failure
than seasonally driven businesses like restaurants and retail stores, meaning other
factors determine companies’ likelihood of long-term success.

That doesn’t mean, however, that there aren’t real risks inherent in seasonal
businesses. An study indicated that 60 percent of restaurants don’t make it past the
first year. Another 2005 study amended that, saying that the 60 percent figure
applied to the first three years. The likely reason? Restaurants have a hard time
getting startup loans from banks, putting these businesses in a catch-22: They’re
taking a big risk without sufficient funds, but they aren’t able to obtain funding
because they’re seen as too risky.

Here is what seasonal businesses striving for sustainability need to keep in

mind.The money coming in has to last all year.

Much like teachers’ salaries, seasonal businesses that endure peaks and valleys
have to spread their income across an entire year. A landscaping business flush with

cash through the summer and monsoon months has to weigh that against the
relatively barren fall and winter months. With experts Insights finding that 29 percent
of small business failures can be attributed to cash flow problems, it’s imperative that
seasonal business owners find ways to “spread the wealth.”

Kabbage, an online lending platform, recommends two ways to do this: by

diversifying a small business’s income streams and getting cash flow management
help. Diversifying income streams is a smart move, bringing money in during the off
season and creating a bulwark against industrywide slumps. Tax preparation
accountants, for example, can take on payroll work the remainder of the year; lawn
care companies can add snow removal to their list of services. As Kabbage warns,
however, businesses need to test their second revenue arm out before committing to
it to ensure they don’t overextend themselves or invest in an area without market

Seasonal businesses struggle to obtain loans or lines of credit from traditional

lenders. But having a backup plan — i.e., credit — available is essential to a
seasonal business’s survival. Alternative financial institutions, such as online lenders,
often have lower thresholds for young businesses to meet, enabling them to gain
access to short-term or replenishing credit without having been in business for a
decade or making millions in cash each year. Kabbage, for example, ties its line of
credit to a small business’s live data, allowing the company to adjust lines of credit in
real time to match a business’s seasonal needs.

Forecasting business expenses is a necessity.

Seasonal businesses not only have ups and downs in terms of sales and revenue,
but also in terms of expenses. Because these companies have specific busy
seasons and demands, they also have specific periods when they’re preparing for an
influx of business — that translates to money spent on inventory, staffing, and more.

The problem, of course, is that these pre-season prep periods coincide with the
slowest times in terms of revenue, meaning the business’s coffers may be looking a
bit empty. Forecasting expenses so the company has already anticipated these early
costs and accounted for them can ensure the business doesn’t run out of money
right before sales come rolling in. Plan Projections, a company helping small
businesses manage financial projections, explains how seasonal businesses can
forecast expenses using headcount, fixed expenses, and other drivers.

Because the elements behind the forecasting are often known, seasonal business
owners can look at ways to trim costs in these areas to increase their margins early.
For example, if they need part-time administrative help, it may make sense to
outsource this to a virtual assistant to reduce overhead costs. Leasing equipment,
rather than buying it, may also make sense to eliminate costs — especially for
repairs and maintenance — during the off season.

Sustainability is created at the worst of times.

While no business wants to imagine the worst happening — a natural disaster, a

break-in, health crises — seasonal businesses are particularly vulnerable to
disasters. FEMA reports that 40 percent of businesses aren’t even able to reopen
after a disaster. Other, seemingly smaller issues can also create circumstances that
snowball into long-term issues for a seasonal business, from a hole in the roof to
rust-hampered lawnmowers. These unanticipated costs can add up quickly and drain
the planned budget for the year.

That means a seasonal business’s budget has to be drafted with these contingencies
in mind, as well as an emergency fund. Most business finance managers
recommend having three months’ worth of business expenses set aside for an
emergency fund, with one month’s worth being the absolute minimum. This gives a

seasonal business a cushion to figure out how to execute Plan B, as would a line of

Contingencies should comprise a line item in a seasonal business’s budget of up to

30 percent of its total expenses. Contingency budgets address the unexpected costs
that crop up throughout a year that aren’t immediately traumatic for a company —
that’s what an emergency fund is for — but can quickly dilute its margins if leaders
aren’t careful. These can include everything from inflation to an increase in the price
of lumber after a hurricane. Any money left over in this particular fund can be rolled
to the next year and applied to growth initiatives or used to keep the business cash

Seasonal businesses can find a path to sustainability, but business owners have to
remember that a tightened window for making money means fail-safes have to be
put in place. While some, like banks, may see seasonal businesses as risky, the
risks they absorb can often be calculated — making it easier for them to make it to
the other side of the five-year mark.

Here are a few questions asked to different group of individuals about seasonal business
and its management.

You belong to which age group?

Age distribution of 15-25 25-35 35 and above

No. of investors 28 16 8

58 responses

What is your profession?

Profession Business Govt Private Housewife Sales MMA Teacher

of service job associate fighter
No. of 5 1 24 3 1 1 1

57 responses

Do you feel Seasonal Business in India is doing well?

58 responses

No of respondents who said: Yes = 35

No of respondents who said: No = 12

No of respondents who said: Maybe = 11

Does Seasonal Business depends upon festivals or weather


58 responses

Festivals Weather conditions Both

28 24 6

According to you how much capital range is required in seasonal

58 responses

Capital requirement No. of respondents

Huge 10
Medium 41
Low 7

What do you think is a major cost handling in seasonal business?

Major cost Handling Capital cost Administration All the said

stock cost cost
No. of 21 22 14 1

58 responses

How much according to you will be the profit margin level in

seasonal business?

Profit margin High Medium Low
No of respondents 24 29 5

58 responses

Which Seasonal business has the most amount of profit as per

weather conditions?
58 responses

What factors attracts you towards seasonal business?

Attracting Available Reasonable Different Innovative All the said
factors during the price varieties products factors
time of

No. of 16 15 12 14 1

58 responses

Is there any shop selling seasonal products close to your locality? 58


Rate the product satisfaction level towards purchase of products
from seasonal business.

58 responses

From the above responses received we know that most of the respondents believe
that seasonal business in India is successful that is 60.3% of the respondents think
that seasonal business in India is successful, also a few respondents think that
seasonal business isn’t successful i.e 20.7% of them.

41.4% of respondents feel like the seasonal business depends on weather
conditions and 48.3 think it’s based on festivals but as per the study it is said that in
India most of the seasonal business owners work as per festivals because India has
wide range of festivals and therefore creates opportunities for businessmen to start
of the seasonal business with just a small range of capital.

It is necessary for every seasonal businessman to look after the amount invested in
that business and also will the amount invested will be useful for the future growth of
the business as per the above data received 17.2% respondents think that high
amount of capital is required to start a seasonal business. 70.7% respondents have
a opinion that neither high capital nor low capital is required to start the business that
is medium capital will be used to start up a small seasonal business and 12.1%
respondents think that very low capital is required for setting up a seasonal business.

There might be many fixed and variable costs to run a small seasonal business cost
like variable cost, operating cost, fixed cost, other costs like administrations etc.
Given the option between Cost of handling the stock, Capital cost, and administration
cost 36.2% of respondents think that the cost of handling the sock is seasonal
business is a major cost, 37.9% of respondents think that capital cost (fixed or one
time cost) is a major cost in seasonal business, 24.1% respondents think that
administration cost like Executives salaries, professional or legal fees, office supplies
etc is a major cost, 1.7% respondent think that all the above expenses or costs are a
major cost in seasonal business.

Profit margin means the amount by which revenue from sales exceeds costs in a
business. Every businessmen wants to have maximum profit in the business so that
he will be motivated enough to continue the business further and also look after the
further growth of the business. In the above survey 41.4% respondents feel like
seasonal businesses in India have a very high profit margin, 50% of respondents
think that the profit margin in this kind of business is not very high nor very low that is
medium profit, 8.6% respondents feel that seasonal business has low profit margin.
The summer season includes businesses like fruit juice business, sugarcane juice
business, mango selling, ice cream business etc according to the survey taken
44.8% respondents feel like business in summer season may give the most profit.
The winter season includes businesses like sale of fashionable winter clothes, coffee

shops business, hot soup business etc according to the survey taken 19% of
respondents think that the business in winter may make most profit. The monsoon
season includes sale of umbrellas, rain coats, rainy shoes, hot and freshly served
snacks etc according to the survey 36.2% respondents think that business in
monsoon may make the most profit.

There are various factors that attracts the customers towards seasonal business
some of the factors are as follows

• Available during the time of need.

• Reasonable price
• Different varieties of products
• Innovative products

According to the data received from the survey conducted 27.6% respondents think
that the most attractive factor is that it is available at the time of need, 25.9%
respondents think that it is attractive because of its reasonable price, 20.7%
respondents think that a different varieties of products in a seasonal business is the
most attractive factor and 24.1% respondent have the opinion that the innovative
products is the most attractive factor also 1.7% respondent feels like all of the factors
mentioned above are fairly the most attractive factors.

Most of the respondents are fairly satisfied with the performance of the seasonal
businesses in India 3.4% respondents are not very satisfied and gave the rating of 1,
6.9% respondents gave the rating of 2 that is most towards not being satisfied,
34.5% respondents gave 3 rating which is average satisfactory, 43.1% respondents
gave 4 rating that is almost being satisfied by the service of seasonal business.
12.1% respondents gave a full 5 rating that is they are full satisfied by the seasonal
business conducted in India.

Running a seasonal business can be challenging. Businesses running as per
seasons require lot of patience to make it a profit making business. There are
months when revenue will be meager, and in some cases, even nonexistent.

Financial management in a seasonal business can become a serious concern. It can

leave you wondering how you’re going to survive, cover your costs, and thrive.

Thankfully, you can take control of your financial management. You just need to use
the right strategies. Strategies such as:

• Planning for those slow months with cash forecasting

• Going all in during the busy months, so you have money on hand
• Getting paid faster by using techniques to ensure your invoices get paid on
• Diversifying your offering to guarantee extra income
• Maintaining your costs to soften the blow
• Finding anchor clients to carry you through those tough months

At the end of season, chances are you’re exhausted and ready for a break. Don’t let
that deter you from getting ahead of schedule. While you may have to take down
equipment or interior decorations, depending on your situation, you can keep
yourself organized and leave clear instructions for the following year. You’ll thank
yourself later, and will be able to start the season off on a high note!

Owning a seasonal business can be an exciting venture, but organization and

innovation are necessary in order to succeed. Since your seasonal business has a
few months to bring in most of your funds for the year, every effort counts! Consider
these seasonal small business ideas, and you’ll be prepared to take on whatever
comes your way.


• Social media now a days is a great platform to promote or sell your products
to customers. Almost 60% of people these days use social media and
therefore advertising your products there can increase the sale to some
 If you own a seasonal business, you may benefit from utilizing Pinterest in
your marketing plan. Having a frequently updated, creative Pinterest page
could attract new customers, and give you another platform to advertise your

 Creating a Pinterest account for your small business is easy, but ensuring that
it is organized and aesthetically pleasing requires attention to detail. Confirm
that your business’s name is the Pinterest account name, and include a link to
your website in the biography section. Pinning your fabulous items is a great
start, but without a link, shoppers won’t be able to buy them.
 Posting tacky, blurry or confusing pictures won’t get your items pinned by
potential customers, it is that simple. If they don’t pin it, why would they
purchase it? Every pin should feature pictures with clear quality, natural
lighting and an angle that shows off the entire item. In addition, eliminate
distracting background factors, since the item you’re advertising should be
what grabs viewers’ attention. Is photography not your strong suit? Consider
hiring a professional photographer to take pictures of your items. Marketing on
Pinterest can be more effective if you take strong images that will make your
page look even better.

• In order to run a successful seasonal business, you’ll need inventory to sell to

your customers! Make sure you’re stocked on popular items, or use working
capital to purchase additional products so that your business has variety.
• If your seasonal business has a physical location, make sure it looks sharp
from the start. Invest in décor, attractive in-store advertising and other aspects
that will draw customers to your establishment. First impressions matter, and
if a customer thinks your store looks drab, they won’t be as likely to make a
purchase, or even visit your location.

• By using your working capital for technology, you’ll be able to increase your
company’s productivity levels, and stand out against competitors. For
instance, consider using working capital to create a mobile app that will allow
customers to peruse your products and place orders. Get extremely
techfriendly by purchasing digital displays, which can be visually pleasing to
instore visitors.
• If your store does better during certain seasons, you’ll want to have additional
working capital to make it through slow times. As a small business owner,
you’ll be comforted knowing that you have extra cash saved away for
whatever life throws at you. If your business goes through a rough patch,
having retail capital could help you get back on your feet.
• Starting off under-staffed will create a stressful environment at your retail
business. Make sure you hire enough employees so that you’ll be able to
easily serve your clientele, and no one will feel overwhelmed while on the job.

These are a few suggestion as per my research that will help the seasonal
businessmen to manage their finances well and also move towards a great profit. A
seasonal business may cherish well in India also because it helps the people more to
find the necessary required products easily and at a reasonable price. The
customers like these products to be reasonably price because at can be used only
for a particular time frame. Therefore most of the times seasonal business in India
may run well of businessmen look after the needs of customers.


1) Name
2) You belong to which age group?



35 and above

3) What is your profession?


Government service

Private job


4) Do you feel seasonal business in India is doing well?




5) Does seasonal business depend upon festival or weather conditions?


Weather conditions

6) According to you how much capital range is required in seasonal business?




7) What do you think is a major cost handling in seasonal business?

Handling the stock

Capital cost

Administration cost


8) How much according to you will be the profit margin level in seasonal



9) Which Seasonal business has the most amount of profit as per weather

Summer (ice cream, cold drinks, etc)

Winter (Woolen clothes, hot coffee, etc)

Monsoon (Umbrellas, rain coats, rainy shoes, etc)

10) What factors attracts you towards seasonal business?

Available during the time of need

Reasonable price Different


Innovative products

11) Is there any shop selling seasonal products close to your locality?

Yes (within 2 kms)

No (more than 2 kms)

12) Rate the product satisfaction level towards purchase of products from
seasonal business

0 Not satisfactory 1 2 3 4 5Satisfactory

• Erickson, Tim. "The Off-Season? One of the most frequent questions I am
asked is 'What do you do all summer?" Snow Goer. August 2005.
• Heath, Erica. "Season-Related Excuses Always are in Season." Rocky
Mountain News. 6 August 2005.
• Waldrop, Judith. "The Seasons of Business." American Demographics. May
• Walden University college of management and technology by Kevin Gibbons
• ICSI Executive group 2 Financial and strategic management.