As the weather gets warmer and Summer approaches quickly, Texas businesses are opening back up at a rapid pace. Consumers have been cautiously saving their money for the past year, but now cash is starting to flow back into the community as people begin to travel and spend discretionary income once again.
Is your business ready for an influx of new customers? Many owners have had to trim back staff and inventory due to decreased capacity and spending throughout much of 2020. Consumer spending has started to rebound though, with multiple states opening. Consumer Spending in the United States increased to 12999.10 USD Billion in the fourth quarter of 2020 from 12924.72 USD Billion in the third quarter of 2020 (source: U.S. Bureau of Economic Analysis).
If you traveled for Spring Break this year, then you may have seen some of the signs of rising spending: full flights at the airports, long lines at retail stores, longer waits for restaurant seating, and the return of a vibrant nightlife scene with packed bars and clubs.
You might have also noticed that some of these businesses were not prepared to handle the influx of customers, having to turn them away or due to being understaffed or out of stock of certain items. At a time when small businesses are struggling, nobody can afford to turn away customers. Make sure you are prepared to handle any sudden surges. Do not go overboard and buy too much inventory or hire lots of new full-time staff, but make sure you have plans in place should the need arise. Here are some helpful tips for preparing for a busy summer as Texas opens back up completely.
- Start posting job openings online and around town – You don’t have to hire anyone right away, but start building a network of quality candidates that you can call on when the time comes for you to increase your staff. You want to avoid being desperate for help and having to settle for subpar employees. As other businesses are re-opening too, the talent pool will dry up quickly. So, get your name out there and start lining up candidates now and stay ahead of the competition.
- Begin selectively increasing inventory – Gas prices are rising which means transportation costs for good will be increasing. Now is a good time to start strategically stocking up on non-perishable products that you know will have a high demand as we get into the summer months. Look into securing additional storage or warehouse space so that you won’t be scrambling to find room once demand increases. If you deal in perishables, see if there is affordable refrigerated or freezer storage in the area. Even if you do not need it right now, be prepared should the need arise quickly.
- Ramp up marketing campaigns – Marketing expenses are often one of the first areas that owners and managers will cut back when times are lean. As consumers start looking to spend their cash, make sure your company is at the forefront of their consciousness. Digital marketing such as Google or Facebook ads are an easy way to advertise with any size budget. Start small and target certain groups of consumers, then widen your net as you start to see an uptick in interactions. Make sure everyone knows that you are open for business!
Just by following these small tips, you can make a world of difference for your small business and ensure that you are ready as Texas opens and businesses start to see increased traffic.
If you found this article helpful, then we think you would love being a part of our community at Business E Suites. We are home to over 50 local businesses in the Sugar Land area, and we hold regular events and workshops that help entrepreneurs develop the skills necessary to succeed. Come and see us and learn how we can help take your business to new heights!