Seasonality Isn’t a Problem, It’s a Profit Opportunity | Ep. 952

A catering business doing $2.8 million at 40% net profit has a problem that feels urgent: 65% of annual revenue comes in six months, leaving the other half of the year feeling like a drag. The owner, Matthew, has been trying to solve this seasonality puzzle for years, worried about overstaffing in winter and turning down demand in summer. But Alex Hormozi reframes the entire conversation. The seasonality isn't a bug—it's a feature. And the real constraint isn't the calendar. It's focus.

The Difference Between Volatility and Risk

Hormozi draws a sharp distinction that changes how you should think about seasonal swings. Volatility means revenue changes month to month. Risk means you might go under. They are not the same thing. He gives two examples: Harry & David's, a chocolate company that does 100% of its annual profit in December and loses money the other 11 months, and insurance companies that make money every year but occasionally get wiped out by a hurricane. Both are volatile, but only the insurance example is risky—because the hurricane is unpredictable. The chocolate company knows exactly when the money will come. Matthew's catering business is the same: revenue is lumpy but predictable. He knows to the percent what each season will bring. That is not a problem to solve. It is a pattern to plan around.

The Real Constraint Isn't Seasonality