5 Ways Winter Weather Can Impact Your Business

Entrepreneurs are often caught by surprise when there’s a sudden unexplainable spike or dip in their profits, but it’s never purely random. In many cases, the seasonal change in the weather between summer and winter is enough to make or break a business (especially businesses just starting).

Understanding how your area’s winter weather can affect your business can help you formulate better winter business strategies. These can be ways to cope with the winter or to use the cold to your advantage. Here are five common impacts of winter on businesses to help kick-start your strategizing.

1. Employees May Cost More

We believe good employees are an asset, even if their wage bills and associated expenses don’t fit into the asset ledger’s strict definition. However, payroll and associated expenses are still expenses at year-end, which can spike during severe weather relative to the work they put in.

If employees earn a monthly salary, you still have to pay them even if they can’t make it to work through winter conditions. Adapting to remote options where possible is the only way to mitigate this effect.

2. Change in Eating Habits

If you’re in the catering and culinary sectors, switch to warm meals and coffees as your big-ticket items for the winter. You can even draw more customers by offering complimentary soups and coffers (for example), even if you have a completely different business.

3. Change in Spending Habits

People go nuts for online shopping and entertainment during the winter. You can cash in by increasing your marketing spending before the real cold sets in.

Be sure to offer products that do well in the cold. For example, start offering your winter clothing selection already during fall, stock up on board games and gaming consoles, or get into selling books.

4. The Storefronts That Suffer

Generally, the smaller the shopping complex in which your storefront is situated, the worse winter will be for you. Normal snowfall is enough to drive people away from stand-alone shops on the side of the road. Big winter storms that make traveling unsafe decrease malls’ profits and even impact online shopping deliveries.

Commercial snow removal is your only tool to clear your storefront. However, if you’re in a part of the world where winters hit hard, we suggest holding more cash and cash equivalents to mitigate the risk of a winter disaster.

5. Power and Heating Issues

It takes more energy for your electricity or gas provider to provide you with energy in the winter. The demand for energy for heating also spikes during winter. This factor makes it even more necessary to have excess cash and gas reserves so that you can power your operations during winter.

Let the Winter Weather Work for You

Winter-proofing your business is vital no matter where you are in the world, but it’s even more important if you’re in a snowy area. Morgan Housel, the author of Psychology of Money, says it’s always good to have more cash reserves than you think you’ll need. This approach alone will fight the impact of winter weather on your foot traffic, heating bill, and employee costs.

You should also adapt your business model and offer things that thrive in the winter. Learn about these types of products and sales strategies by visiting our business blog.

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