Christmas is coming... tips to survive the Christmas Chaos
It’s not just Santa and his elves who need to prepare for the festive season.
Every business, whether your industry is seasonal or not, will be affected by Christmas.
Supply and demand is a huge issue at Christmas time – in fact, retail sales go up 20% in the run up to Christmas, with some businesses making as much as 50% of their annual turnover at this time.
It’s a time when we’re running around like ‘headless turkeys’ (as well as eating 10 million of them!), yet, as the sayings go, ‘preparation is key’ and ‘knowledge is power’.
Stay in control by following these simple tips...
Talk to Your Customers
Talk to your customers and find out their Christmas plans... will they have more demand for your services, resulting in more stock, more staff? Or will they close for the holidays; as a result you might need to pull back on resources?
If your customers have a heightened demand you will need new stock. When does this need to be ordered? Can you store it correctly – dry, frozen, pallets? Do you have the funds to buy it?
But beware – don’t overstock, it could be a costly mistake if it ruins, expires or can’t be returned.
Have you serviced and repaired your machinery? If it is about to go into overdrive you want to prevent any breakdowns and make sure it is running to its maximum capacity throughout.
If your business is seasonal, or certain parts of your production line are periodic, look at hiring additional machinery and kit rather than buying it outright. This can save money on not only the purchase price but also on repairs.
Look at extending your operating hours – do you need to work over the weekends or later into the evening. You need to maximise your working hours, but ensure you balance the costs of this out with overtime.
If the festive season is your busiest time do you need additional staffing? Can you manage on offering overtime to your existing staff? Can you afford to pay for either of these? Alternatively, if Christmas and the New Year are quiet times for you then look at reducing staffing costs – have all your employees taken all of their annual leave? Can some be put on seasonal hours/contracts?
Short Term Finance
Look at a short term finance option to fund any additional overheads – stock, wages etc.
Look at an independent broker to secure the best deal for you, whether that’s...
Short term bridging loan
Short term loan
Working capital funding
At Cashflow Bridge we have access to all the UK’s loan providers, both secured and unsecured; and many short term finance options don’t have set up fees, early repayment charges and can be arranged – with monies in your account - within days.
Business owners need to be acutely aware of security – both inside and out – at all times of the year, but especially in the run up to Christmas. Check your alarms, locks, safes, check the fencing and gates along the perimeter of your premises too.
In turn, if you are adding more stock, have increased your production, or hired and purchased new machinery, for example, ensure your insurance is up to date to cover any unforeseen accidents or incidents so you are probably covered.