Timing plays a critical role in business starting with what day the door is open for clients or customers. Some businesses are based on seasonal events; winter sports, summer, Christmas, Mother’s Day, etc. A landscaper who does not get underway until July is going to have a lean winter, and January is going to miss most of the opportunity for a ski shop! Good planning and research is required before the season begins so you can reap the benefits.
Inventory is another part of business driven by timing and to some degree, what competitors do. Fall clothing starts to appear in retailers in late July, early August at the latest and the summer clothing is out in February/March. Christmas begins very early at retailers such as Costco and Canadian Tire. This can be a challenge for smaller retailers who rely on the sale of Christmas decorations as they have to follow suit of lose out on the opportunity to share in the market.
Large retailers can afford to invest in inventory and carry it but a small retailer does not usually have the deep pockets to carry inventory and certainly cannot afford to be left with inventory after the season has left. This is where keeping good records of customer transactions can be huge as you plan for the next season.
Timing also plays a role in hiring staff. A wise business person has a clear idea of where they are going and hires before they need them. This give the opportunity of training them and having them up to speed when needed. Too many employers hire when the need was yesterday. This results in poor hiring decisions and employees who have not received the needed training to effectively do the work. This can affect employee retention.
If you are a new entrepreneur, do great research, set realistic goals, and be aware of the timelines and critical date associated with your particular business. Your business plan is your guide and a living document for you to forecast future revenue.
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