Running a seasonal business- whether it’s a bookstore in Creede, a t-shirt shop in Estes Park, or a coffee bar tucked into a trailhead town-comes with both charm and challenge. Businesses in small towns often feel the rollercoaster of seasonal business the most. The views are unbeatable, the communities are tight-knit, and the tourist traffic can be reliably busy during peak seasons. But between snow-packed winters, inconsistent internet access, and short selling windows, these businesses have to work smarter, not harder, to survive and thrive.
Here are practical legal, financial, and business tips tailored for seasonal entrepreneurs in Colorado’s most scenic corners.
Know Your Season- and Plan for It All Year
Your season might be Memorial Day to Labor Day. Or maybe your small ski-town gift shop only thrives from December to March. Either way, you need a full-year plan for a part-year business. Smart businesses will buffer the risks of seasonality with one or all of the following strategies.
- Forecast revenue realistically: Use historical sales and local tourism data to estimate high and low months. Aim to make enough during your season to cover the off-season, with a buffer.
- Batch content and marketing: Schedule social media, email campaigns, and blog posts in advance so they’re ready before things get busy.
- Automate off-season income: Sell gift cards, branded merchandise, or digital products (like local travel guides) on your website year-round.
Set Up the Right Legal Structure
Many seasonal businesses start as passion projects, but turn into bigger enterprises. Not having the right legal structure matters, especially when remote locations increase risk and liability. Take a moment to consider the following tips on how to reduce your legal and financial risks.
- Consider an LLC: It offers personal liability protection without a lot of formalities, and it’s the most flexible option for many small businesses. There are some instances where an LLC isn’t the right solution- a business attorney can help you determine the best route for your business.
- Use an operating agreement-even if you’re solo: This sets clear rules for how the business is run and protects you in disputes, loans, or audits. Further, if you decide to take on a business loan in the future, most lenders (if not all!) will require that you have an executed operating agreement as part of their due diligence procedures.
- Know your tax responsibilities: Even if you’re only open for five months, you’ll likely owe annual state and local taxes. Consider working with a Colorado-based tax pro who understands seasonal ebbs and flows.
Dial In Your Permits and Local Compliance
In smaller, remote communities, the rules might seem casual- but they still matter. It’s very important that you stay compliant with your local ordinances.
- Double-check local licenses: Many towns (especially tourist ones) have specific regulations for signage, street vendors, or short-term retail.
- Watch for sales tax quirks: Colorado has complex sales tax zones. If you’re selling t-shirts or mugs, your sales might be subject to city, county, and state rates-plus special district taxes.
- If you hire teens or seasonal help, understand Colorado’s labor laws around youth employment, tip pooling, and overtime.
Make a Smart Lease or Property Plan
Commercial space can be limited and expensive, particularly in Colorado’s destination tourist towns. Property is often owned by locals who operate more on handshake deals than contracts, which puts business owners at risk. If you own a seasonal business with retail space, your commercial lease is one of the most important documents and a potential hotspot for legal risk.
- Negotiate a seasonal lease: Many landlords will consider part-year occupancy if it means guaranteed rent during tourist season. Just be clear about your open/close dates.
- Include off-season terms: If you need to store inventory over the winter, build that into your lease. Make sure utilities stay on if you’re storing items that can’t freeze.
- Document everything: Even if your landlord is your neighbor or a friend-of-a-friend, get agreements in writing. Oral leases create major legal headaches.
Master Inventory and Vendor Relationships
In a remote area, inventory matters more-because resupplying can be time-consuming and expensive. Having a plan for both your peak and low seasons will help reduce the stress of managing inventory.
- Buy local when possible: Colorado-based suppliers may deliver more consistently and help your brand feel authentically local.
- Use inventory tracking software: Even basic systems like Square or Shopify can help you avoid stockouts during your busiest weekends.
- Create strong vendor relationships: If you’re far from Denver or a major hub, you’ll want to be on good terms with reps who can help in a pinch.
Build a Resilient Off-Season Strategy
Just because your door is closed doesn’t mean your business is asleep. Successful seasonal businesses have a plan to generate income during their offseason. They also use the quiet time to work ON the business and tend to the not so exciting legal and financial tasks that come with running a business.
- Sell online: Offer a limited selection of best-sellers year-round through an e-commerce site. Services like ShipStation and EasyPost help rural shippers manage costs.
- Plan your tax and legal work: The off-season is the time to catch up on bookkeeping, rework contracts, or plan next year’s marketing.
- Stay visible: Schedule quarterly email newsletters, highlight behind-the-scenes photos on Instagram, or partner with local influencers to stay top-of-mind.
Insure Wisely
From wildlife to wildfires, running a business in rural Colorado has unique risks. It’s important to speak with an attorney and an insurance advisor on the types of insurance your business may need. Many business owners don’t realize that certain vendor contracts and leases require minimum levels of insurance, which if not adhered to, could result in a breach of contract.
- Get general liability and property insurance: These should cover theft, natural disasters, and liability if someone slips on your front step.
- Seasonal insurance policies: Some insurers allow you to scale coverage based on your business calendar-just make sure you’re covered during set-up and teardown time too.
- Review your cyber risk: If you collect credit cards, emails, or customer info, consider a low-cost cyber liability policy-even if you’re not tech-heavy.
Market Like a Local (Even to Tourists)
Remote businesses often rely on visitors, but they still need local credibility. Showing that your business is well-entrenched in the community makes tourists more likely to spend money with you.
- Partner with other seasonal businesses: Create joint promotions with the bike shop, art gallery, or brewery next door.
- Use Google Business Profile: Make sure your listing has updated hours, seasonal photos, and links to your website or booking tools.
- Engage with regional tourism boards: Towns like Salida, Ouray, and Gunnison have local chambers and tourism groups eager to promote small businesses.
Get Help When You Need It
Small business owners in small towns are savvy. Access to resources may be limited, so owners need to wear many hats to keep their business afloat. While DIY’ing your business is the default, there are some things that need a pro.
- Hire a business attorney for key contracts: Especially leases, purchase agreements, or partnerships. These documents protect your livelihood.
- Work with a CPA familiar with seasonal businesses: From depreciation schedules to quarterly tax planning, a good accountant can save you thousands.
- Ask for business advice early: The off-season is the best time to review strategy, apply for grants, or restructure your entity if needed.
Seasonal businesses in remote Colorado towns are part of what makes the state magical. Whether you are selling books in the mountains or t-shirts by a hiking trail, your work supports tourism, local economies, and community identity.
As a seasonal business owner, the key to thriving isn’t working harder-it’s planning smarter. From clear contracts to creative marketing, small shifts can mean big peace of mind. And when the snow melts or the leaves start to change, you’ll be ready.
Need legal advice for your seasonal business?
Let’s talk. Our firm helps Colorado entrepreneurs set up, protect, and grow their businesses, no matter how remote. Schedule a free initial consultation today to learn how we can help you thrive through the seasonality of your business.
