Brad Sugars' Blog|Franchising|Small Business Coaching|business advice|business help|business mentor|executive coach|

So few people grow up on the land these days that most of us forget how important seasons are and just how they work.

If you grew up on a farm, you know that during the summer, you need to make hay while the sun is out.

Instead, too often businesses make more money and then just end up spending more money. You need to make bales of hay to get through the economic winter. Too few companies understood that during the last cycle, leading to the recession we’ve experienced.

Most businesses that got themselves in trouble simply don’t understand how the financial seasons work and use the seasons to their advantage.

Rather than storing their bales of hay, troubled businesses fed the hay to their cows, or worse yet, simply let it sit in their fields and turn to compost.

And when businesses spend way too much for way too long, they fall into the cycle of borrowing, which just ends up leading to spending more money that you just don’t have.

As the seasons of the economy change, businesses need to change as well.

Strategies that worked during the economic summer may not work in winter, and vice versa.

So what should you do during the economic seasons?

During summer, raise your prices or find other ways to increase your profitability. You need put money away in summer, just as the farmer makes hay while the sun is out.

When the economic fall comes, it is time to clean up and prepare for winter. Get rid of any sick cows that might populate your farm and be sure you have all the resources you need to make it through.

In winter, it is time to take advantage of opportunities because you were prepared. The best time to find quality employees, make new purchases, change your marketing plan or even move to a new location are during the winter.

Why?

Because prices are low and other businesses are discounting to keep their heads above water. The economic winter separates the strong from the weak and if you know what to expect and how to prepare, your business can weather the storm and even grow.