Transworld Business Advisors Say 'Seasonality' Key Factor in Profits

    WEST PALM BEACH, FL, November 27, 2018 /24-7PressRelease/ -- Transworld Business Advisors, the largest business brokerage franchise in the world with more than 500 brokers in nearly 200 offices, specializes in business sales, franchise consulting, and franchise development. On their recent 'The Deal Board' podcast episode, show hosts Andy Cagnetta, CEO of Transworld, and Jessica Fialkovich, owner of Transworld Rocky Mountain and small business advocate, discuss the approaching holiday season and provide valuable insights into the "seasonality" of the holidays and the effect it has on revenue.

"The holidays are big business and provide a bump because of the emergence of sales-oriented days such as Black Friday, Cyber Monday, Small Business Saturday and even Giving Tuesday," said 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 says that businesses take advantage of the public's mini-vacation as most people are off work between Thursday and Monday. "Businesses do all they can to lure consumers into their stores during those days and some are even open on Thanksgiving, which shows how important the holiday season is to them," he said. "One business we talked to habitually acquires about 60 percent of its new customers over Thanksgiving weekend, while others see a 30 to 40 percent jump in sales."

According to the Transworld CEO, when an owner is thinking about selling or buying a business, it's important to understand "seasonality" and the role it plays. "Business owners need to focus on the critical days that really bring in the most money, and in this case it's the holidays," Cagnetta said. "Seasons do affect businesses, so whether you're buying or selling, it's critical to time a transition just right to maximize profits."

The holiday season plays a big role in profitability, as witnessed by the increase in profits that restaurants turn during South Florida's "season" that runs from Thanksgiving to Easter. "We see it when selling restaurants because the snowbirds come down during that period and it gets extremely busy down here," said Cagnetta. "Sometimes you can't get a seat in a restaurant and profits are great, but if you're buying a restaurant in non-peak months like July or August, it's more difficult. "We work closely with buyers and actually make a lot of deals and concessions so they are assured of surviving the slower months," Fialkovich said. "In essence, we try to educate people on the buying process."

Transworld's North Boston office had a recent listing that shows the importance of seasonality. "Typically fitness center memberships are great gifts for someone as a New Year's resolution, but this particular listing wanted to get a jump on the competition and promoted memberships during Black Friday," said Aaron Fox, managing broker. "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."

An estimated 164 million people will shop Thanksgiving Day through Cyber Monday, according to the National Retail Federation and Prosper Insights & Analytics. Holiday retail sales in November and December are expected to increase between 4.3 and 4.8 percent over last year, and total spending will range from $717 billion to $720 billion. Last year's holiday sales represented nearly 20 percent of total retail industry sales that includes store-based and online sales from a broad range of retail categories such as discount stores, department stores, grocers, specialty stores and non-store sales—but excludes sales at automotive dealers, gas stations, and restaurants.

About Transworld Business Advisors
Led by CEO, Andy Cagnetta, Transworld Business Advisors is a member of United Franchise Group, a successful group of franchise systems with 1,600 franchisees in 80 countries. Formerly Transworld Business Brokers, the company has 40 years of brokerage experience representing acquisition-minded corporations and individuals interested in owning their own company, or in franchising. With more than 500 brokers in nearly 200 franchised offices worldwide, Transworld offers the professional services that successfully bring buyers and sellers together. From business brokerage to mergers and acquisitions, Transworld Business Advisors are business sale specialists. For more information on buying or selling visit www.tworld.com and for owning a Transworld franchise, visit www.tworldfranchise.com.

About The Deal Board Podcast
The Deal Board podcast is a place to learn about the best way to sell a business or acquire a new business across a wide variety of industries. Hosted by Andy Cagnetta, CEO of Transworld Business Advisors, and Jessica Fialkovich, President of Transworld Business Advisors Rocky Mountain, the show provides a behind-the-scenes look into a business brokerage transaction, helping listeners understand the process. Through conversations with successful entrepreneurs who have learned the ins and outs of buying and selling businesses as part of their own business endeavors, weekly podcast guests help make listeners' journey as an entrepreneur easier and a more enriching experience. To learn more about The Deal Board Podcast, visit www.tworld.com/thedealboard or subscribe on iTunes, Android, Stitcher, Tunein, Google Play, Spotify, YouTube and more.

About United Franchise Group
Led by CEO Ray Titus, United Franchise Group is home to a variety of internationally recognized brands including Signarama, Fully Promoted, Experimac, Jon Smith Subs, Venture X, SuperGreen Solutions, Transworld Business Advisors, Accurate Franchising and The Great Greek Mediterranean Grill. With more than three decades in the franchising industry, and 1,600 franchisees in 80 countries throughout the world, United Franchise Group offers unprecedented leadership and solid business opportunities for entrepreneurs.

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