“You want to minimize your fixed expenses and make sure you don’t go too extravagant (in spending), especially when revenues are down,” Kolich said.
Dennis Prather’s professional coat check and service company, Hats Off to You!, is particularly busy during the holidays, as well as the cold-weather months when people wear coats. He faces the seasonal dilemma during the summer.
Prather, who works out of his Lee’s Summit home, minimizes expenses by hiring contract employees when needed. He also has extended his season by adding luggage and baggage check services and doing additional event staffing on a contract basis.
Prather’s biggest remedy was to buy another company, Metro Pool Service, also a seasonal business. Metro cleans pools and their equipment as well as doing repair work.
“Someone introduced me to what they did and they thought it would be a good fit for me, and I bought it,” Prather said.