Running a business that is situated in the Algarve can present you with many excellent opportunities in terms of local footfall and the attractions of the tourist season. However, setting up your business in the Algarve presents its unique set of challenges that your business must overcome. Here are several steps that you can take to ensure that your business remains successful in the area.
1. Prepare for Seasonal Fluctuations
One of the most significant challenges that a business on the Algarve faces is the fact that it will usually receive the majority of its revenue during the summer months, with 3 million overnight stays occurring in July of last year. However, although businesses will be able to maintain a stable cash flow for half of the year, many smaller businesses struggle to keep afloat through the rest of the seasons. To ensure that you are ready for the natural flux of tourist areas, you should consider finding a secondary avenue of income, selling different products during the winter season, or considering finding ways to attract locals, as well as tourists, to your business.
2. Focus on Your Employees
The Algarve presents an excellent opportunity for those looking for employment, with many people looking for temporary or summer work. This means that employers will be spoiled for choice when they are looking to hire employees. However, to ensure that your recruitment drives are successful and that you can hire employees that are dedicated to your business, you need to make your business employee centric. To do this, you should consider providing an extensive benefits scheme for your team. At Zenefits, their integrated HR system can help your employees to be in charge of their employee benefits and to have the choice of those that they are interested in.
3. Keep Track of Your Finances
Keeping track of your finances will allow you to check that you are receiving a stable cash flow every month of the year. To do this, you should research and stay up-to-date with the latest financial legalities and tax laws in Portugal. You should also consider hiring a local accountant to help you to organize your books alongside their knowledge of finance and download a finance tracking app which you can use to record your expenditures and income.
4. Monitor Your Business’s Success
You should use metrics and the right KPIs to track your business’ success. You can do this by downloading a data analytics application or by hiring a professional team to do so. This will help you to isolate any weaknesses that are preventing your business from succeeding. Knowing these issues will help you to drive improvement within your firm.
5. Become Customer-Focused
Customers are the center of your business, ensuring that you receive a stable revenue and enabling your business to grow. To get the loyal customer base that you are searching for, or even just to entice a tourist in from the street, you need to become customer focused. You can do this by creating a unique customer experience, giving them personalized service and recommendations, and ensuring that they can shop in a relaxed and welcoming environment where their concerns can be quickly solved.