Many startups experience marginal ups and downs especially when it comes to revenue and volume from one month to another. This does not apply to all businesses. There are some which only pick up and thrive during some months then go on to see little to no action for the rest of the year. Business experts refer to such businesses as seasonal businesses. They are so many these days. There is a problem though. With a complex and rapidly growing marketplace that continues to expand how businesses can process payments, the aforementioned seasonal businesses seem to have a hard time breaking even. That’s solely because credit card processing for these businesses bring along different sets of dynamics that are different from what conventional business owners are used to. Here’s what it takes to process payments for your seasonal small business.
Understand Your Marketplace
Gas stations and grocery stores seem to enjoy stable returns through the year. This is hardly the case in other business. A ski resort will for instance, see more volume in winter months compared to summer months. Likewise, air conditioning service providers will experience a boom during summer as opposed to winter. That is, they will reap more between April and August than they will reap between December and February. The trick here is to identify effective methods for covering costs and experiences during the low season when business is extremely or non-existent. So when choosing a payment gateway service provider, make sure that the services as well as systems offered are in line with what you offer. That way, you can easily maximize both security and profits.
Study Your Customer Base
Checkbooks and cash are quickly being replaced by chip cards and a wide range of mobile payment solutions. As with any trend in business, these changes demand for market shifts and swift measures to adopt. This does not mean in any way that you should throw away the old system in the name of embracing new age payment systems. You will still need to gradually incorporate modern credit card payment and processing procedures as you account for the traditional and old customer base that still relies on paper transactions. Understanding the age range as well as needs of your clientele will make it easier for you when it comes to figuring out their preferred modes of payment.
Know Your Fees
Make no mistake in regards to fee as you evaluate how your business should handle credit cards processed transactions. Take into account all rates and miscellaneous expenses associated with each transaction. Note that fees can be easily incurred for each swipe. Keep in mind that some companies offer their clients seasonal shutdown options which allow business owners to cut costs during slow months where you credit card transactions are on the low due to lack of volume.
This cannot be emphasized enough. Clients need to be sure all the time that they can transact with you with the peace of mind that their data is safe. You also need solid assurance that your data as well as your money are both safe.