Seasonality

BY MATTHEW D. MOHR

Adjusting operations for seasonal fluctuations in business is not an easy task. A stable, consistent year-round business is easier to manage due to predictability of needs and (hopefully) profits.

Our region has four major seasonal swings caused by agricultural activity and the weather. Spring is a time for planting, so businesses serving the agricultural sector often anticipate an upswing in activity. Elective services, such as some parts of health care, see a slowdown in the spring. During the summer growing season and with warmer temperatures, many folks spend time vacationing, recreating and enjoying lake areas, so business tapers off for some and improves for others. Harvest time comes in fall, creating a completely different set of market conditions for the region. Winter causes havoc for some enterprises and a bonus for others like snow removal and ice fishing. Predicting what will happen year to year or even day to day is a challenge. A business must predict what people needs will be, what inventory to carry, and just about every other part of an operation must be adjusted to handle seasonal fluctuations.

We may have an early spring and warm summer one year so clothiers might sell a larger amount of swim suits. The next year could be completely different. Inexperienced merchandisers would purchase too much swimwear or be caught short.

Business owners and managers with experience are much better at handling seasonal fluctuations due to having the knowledge and ability to anticipate what may happen.

In the past, temporary employees were much easier to find to help with seasonal business fluctuations, but this is not the case today throughout our region, so employee hiring is a more recent challenge.

When building systems and employees, the seasonal effect on our region will be anticipated by experienced entrepreneurs. Failing to anticipate seasonal business fluctuations can lead to trouble rather quickly and can be hard to come back from. PB

Matthew D. Mohr CEO, Dacotah Paper Co.