Nov 092012
 
EOY finalist discusses how seasonality affects her business

Seasonal entrepreneurs rely on the cyclical nature of their business and are therefore required to be considerably future orientated when making managerial decisions. This can be very challenging and requires careful planning and an in depth understanding of one’s business environment.

Anthea Ambursley, General Manager of Anansi Business Enterprises T/A Anansi Heights guest house, is a seasonal entrepreneur and was also a finalist in the 2012 Sanlam / Business Partners Entrepreneur of the Year® competition. As an entrepreneur operating in the local tourism and hospitality sector she is greatly affected by the cyclical nature of her industry, and indicates that 80% of her turnover is generated during seasonal peaks. “It is therefore imperative that we actively take seasonality into account when managing the business.”

She says that the seasonal nature of the hospitality industry has a strong influence in the strategic management of her business… more

Nov 092012
 

Why does seasonality affect your business?

Seasonality in your business refers to regular and predicable changes in business activity at given times or periods. These changes or fluctuations can occur during the workday, week, month or seasons of the year. The most significant changes generally occur during the seasons of the year where there is a marked change in supply and demand patterns. On the supply side, the agricultural sector is particularly affected and, on the demand side, manufacturers and most small businesses will see a drop or an increase in demand for goods or services.

How does seasonality impacts on your business?

It can affect cash flow, sales volumes, efficiencies, capacity, stock holding and labour requirements. The business owner must, therefore, be aware of when and to what extent their business will be affected by any changes in demand or supply… more

Nov 092012
 

With the festive season looming, entrepreneurs often get caught up in the rush and forget to step back and analyse how their business operates within this busy period of the year.

According to Nimo Naidoo, project manager of the Sanlam / Business Partners Entrepreneur of the Year Competition®, the festive season can be one of the most busy and costly periods of the year, especially for businesses operating within the tourism, hospitality and entertainment sectors.

Naidoo says that although most businesses have seasonal highs and lows, no matter which industry they’re involved in, many businesses within the lifestyle and hospitality sectors depend heavily upon revenue generated during this period, and can sometimes survive on this revenue throughout the year.

She says that businesses operating in these industries therefore need to take care when putting budgets in place… more