Running A Seasonal Business: What Every Owner Should Know

1. Understand Canada's Seasonal Realities

• Weather-Dependent Timing: Canada's diverse climate means your season's start/end dates may vary by province. Be flexible and monitor local weather trends.

• Peak Season Windows Are Short: For example, summer tourism might only last 8–12 weeks. Planning is critical to maximize this window.

  
  

2. Master Canadian Tax and Legal Obligations

• File as a Seasonal Business: You may still need to file tax returns even if no income is generated in the off-season. Work with a good accountant so you don’t miss any filing dates.

• GST/HST Registration: If your revenues exceed $30,000 in 12 months, you're required to register and collect GST/HST. Contact us for the detailed rules on GST registration requirements.

• T4 & ROE Requirements: If hiring employees, prepare to issue T4 slips and Records of Employment (ROE) at season end.

  
  

3. Smart Financial Planning

• Budget for the Entire Year: Your peak earnings must sustain your business for 12 months. Use cash flow projections and build a reserve cash fund by depositing funds into a savings account during the peak season.

• Access Government Grants/Loans: Look into seasonal small business support from federal or provincial programs, like the Canada Summer Jobs program.

• Apply for line of credit during peak season: Having a line of credit available during your off-season can give you a bit of financial breathing room and keeps you from relying on higher interest options.  But it can be beneficial to apply for the LOC when your revenue is strong rather than waiting for the off-season to apply.

• Track Sales by Season: Year-over-year data helps optimize pricing, marketing, and inventory and the timing of your purchases, helping you stay in control whether during peak season or off season.

  
  

4. Hire and Manage Seasonal Workers in Canada

• Follow Employment Standards: Comply with provincial labour laws (minimum wage, hours, overtime, etc.).

• Use Government Hiring Programs: Subsidy programs like Young Canada Works or Student Work Placement Program can offset labour costs.

• Plan for Worker Availability: In rural or tourist-heavy areas, housing and transportation may limit your hiring pool.

  
  

5. Insurance & Liability Protection

• Tailored Seasonal Insurance: Ensure you’re covered for your specific season (e.g., winter liability for snow/ice, summer for boating or tourism).

• WCB Compliance: Depending on your province, you may need to register for Workers’ Compensation.

  
  

6. Marketing for Canadian Seasons

• Plan Pre-Season Campaigns: Start marketing 1–2 months before your season begins. Canadians often plan ahead—especially for vacations, events, or services.

• Highlight Local & Canadian Appeal: "Shop Local" and "Canadian-Made" can be effective selling points.

• Utilize Bilingual Marketing (Where Needed): Especially in Quebec or bilingual communities, ensure materials are in both English and French.

  
  

7. Inventory & Supply Chain Management

• Seasonal Import Timing: If importing goods, account for delays due to customs, winter shipping disruptions, or port slowdowns.

• Buy Local When Possible: Canadian suppliers can reduce delays and promote local economic support.

  
  

8. Leverage Tourism & Local Events

• Use Destination Canada & Provincial Tourism Sites: List your business on platforms like Destination Canada or provincial tourism boards.

• Collaborate with Local Businesses: Join forces on events or promotions to boost traffic.

  
  

9. Technology & Tools for Seasonality

• Use POS & Accounting Software: Tools like Square, QuickBooks Canada, Xero or Wave help manage fluctuating income and expenses.

  
  

10. Plan for the Off-Season

• Stay Visible Online: Use email, social media, and blog content to keep your audience engaged year-round.

• Pivot or Expand: Consider off-season services (e.g., summer landscaping → winter snow removal) or online revenue streams.

• Invest in Training, Upgrades, & Maintenance: The off-season is perfect for business development.

Running a seasonal business is different than running a year round business but learning about and understanding these tips can help you better manage and control your seasonal business all year long.