Transworld Business Advisors discusses festive profit boosts

Transworld Business Advisors has been discussing how the seasons can affect how well a business is doing.

Transworld Business Advisors has been advising businesses how to get the most out of the potentially profitable holiday season.

Speaking on the franchise’s ‘The Deal Board’ podcast, hosts Andy Cagnetta (CEO) and Jessica Fialkovich (owner of the Rocky Mountain franchise) discussed how the holiday period can have an effect on companies’ revenue and how businesses can fluctuate according to the seasons.

"The holidays are big business and provide a bump because of the emergence of sales-oriented days such Black Friday and Cyber Monday," explained Fialkovich. "Retailers and small businesses capitalize on this time of the year because it's a prime time for sales, increased revenue and profits."

Cagnetta continued by saying that many businesses acquire new, recurring customers during this period of the year. He shared that one business that Transworld advised “acquired around 60 percent of its new customers over Thanksgiving weekend” and said that many others can see a 30 to 40 percent increase in sales over the period.

He advised that, when thinking about selling their business, owners need to understand how important ‘seasonality’ is to their business and to time a takeover just right.

"Business owners need to focus on the critical days that really bring in the most money, and in this case it's the holidays. Seasons do affect businesses, so whether you're buying or selling, it's critical to time a transition just right to maximize profits."

The podcast also discussed a great example of nailing seasonality from the business franchise’s North Boston office. Aaron Fox, managing broker at the branch, shared the story of a fitness centre that wanted to get ahead of the New Year’s rush to put itself in front of its competition and so offered membership promotions during Black Friday.

“This strategy kept people thinking about memberships leading into January and by doing so captured a new market and revenue stream that accounted for 62 percent of its new membership. Due to the seasonality strategy, an owner or a buyer would know what revenue to expect going into 2019 and what to expect the first quarter of the year."

With more than 500 brokers spanning 200 franchised offices across the globe, Transworld Business Advisors provides advice, help and reassurance to people across the world looking to buy or sell a business.