Fruit Market
Seasonal businesses have a greater financial challenge from those that operate year-round. Specifically, they must generate sufficient “annual” income in a shorter period of time.
Economics
If the business is a fresh fruit and vegetable market, open during peak growing season only, the window of retail opportunity can fluctuate depending on variables you may or may not have control over. Variables such as weather conditions, tourist trends, crop production and market prices have a profound effect on the business’ ability to meet its strategic and financial objectives. Decisions regarding the percentage of homegrown-to-purchased products ratio are integral to profit realization. Market prices and competition also affect profitability. Some cost/benefit analysis should be conducted to determine the feasibility of utilizing your asset during off-season to cover year round fixed costs. For example, renting the facility to a seasonal craft fair, or accommodating Christmas tree farms on your land, may help offset some of the operating costs for your facility during the months in which the business is customarily closed.
Marketing
Observe other successful businesses in your market and determine: What it is they are doing right? What is their competitive advantage? What could they improve upon? What is YOUR competitive advantage? Where will you open in relation to their location? Opening your business near a successful competitor will enable you to benefit from the traffic flow that is already coming to them. Consumers are inquisitive (for a variety of reasons) so they will naturally want to check you out! This is your best opportunity to make their visit memorable and increase the likelihood of their return. Your marketing plan should focus on your strengths and your competitive advantage to drive sales towards products and services with the greatest margin. Consider the customers you want to target and plan around them. For example, if your target market are tourists, then the products you sell, the way they are packaged and displayed will need to focus on the needs/wants of that specific market. Without formally deciding the where, how and what your market arena is and whom you are targeting, you may find your efforts, including those of your sales and production staff, are less effective.
Strategic Planning
The strategic plan is the road map with which you determine how much resources you will need in terms of human capital, financial commitment and time to achieve your short and long-term business goals. Continuous review enables adjustments as conditions and opportunities necessitate, while maintaining a forward-looking approach.
Cher Wood
Cher Wood, CPA, CGA, Shareholder
Serving clients in BC through offices in Richmond, Vancouver, Kelowna and Osoyoos
