For some businesses, sales boom during the holiday season, while for others, things slow right down. Either way, careful planning is key to getting your business merrily through the silly season.
Check out these tips to plan for a successful December and January, keep your customers happy and avoid a cash flow crunch.
Get your stock orders in ASAP
Stock the halls! If your business gets busier this time of year, make sure you can meet a higher volume of sales than usual. For many businesses, planning and preparing your stock orders should be high on your priority list. Review data from previous years to guide your inventory decisions.
There’s no such thing as “too early” when it comes to planning your Christmas stock. Trade Finance can help your business pay for stock up front — don’t let slow cash flow delay your orders. Trade Finance can bridge the funding gap between your business buying stock and selling those goods to your customer.
Check-in with your business customers
If you operate a B2B model, check in with your business customers to understand how they’ll be operating over the holiday period. For example, if you’re a wholesale business, reach out to customers for an indication of how much stock they’ll need.
You’ll also need to check in with your transport partners to coordinate and plan for increased demand over the festive season. Anticipate the rush of last-minute holiday purchases; deliveries direct to customers or from warehouse to stores will need to run smoothly to meet Christmas deadlines.
Hire additional staff if required
Does your business boom during the festive season? Having enough staff on deck is critical to ensure a happy customer experience. This may mean re-working existing staff rosters, outsourcing or hiring extra casual staff to handle the influx of orders. Onboard new team members efficiently to prepare them with confidence to effectively deal with the fast-paced festive season and challenging customer situations.
Chase overdue accounts before the holiday period
If your business sales typically slow down over the festive season, beat the Christmas cash flow blues by chasing overdue accounts early. Don’t leave them until the last minute; if their accounts payable department is already on holiday, you won’t be paid until the following year.
Invoice Finance can help your business access funds upfront from unpaid customer invoices. This cash flow can enable your business to finance the usual running costs such as wages, inventory, raw materials and transport costs during Christmas.
Other tips to avoid a cash flow slump:
- Prepare a budget for finances during the festive season.
- Postpone any unnecessary expenses until income picks back up again.
- Don’t forget your GST and PAYG - if you pay quarterly, these will be due in February.
- Reduce staff hours to match a drop in sales activity.
With smart planning and the right finance options in place, the silly season doesn’t have to be stressful. Reach out to our team at Earlypay for a discussion on how we can help.
If you'd like to learn how Earlypay's Invoice Finance & Equipment Finance can help you boost your working capital to fund growth or keep on top of day-to-day operations of your business, contact Earlypay's helpful team today on 1300 760 205, visit our sign-up form or contact [email protected].