The festive season can be a chaotic time of the year depending on the industry you’re in.
There’s no telling whether sales will plummet or soar. While it should be a time to slow down and unwind from a long year of hard work, it can be the busiest time of the year for some. You can avoid the stress and get the most out of the peak season by preparing ahead of time.
Managing cash flow with a cash flow management tool, forecasting cash flow to get an idea of what to prepare for, and accessing business funding to take advantage of opportunities over the peak shopping period, all contribute towards the success of your business.
Retailers are especially busy this time of year, having to prepare for the peak shopping period. Managing supply and demand during a time when suppliers are prone to closing down for the festive period can also pose a challenge for small business owners.
The construction industry faces a similar challenge as businesses slow down over the festive season, leaving the industry with less working capital to pay salaries and bonuses.
We’ve compiled a list of six business tips for the festive season that you can apply to help your business succeed:
6 Business Tips You Can Apply Over the Festive Season
1. Use a cash flow management tool
Always keep in mind that this time of year presents its own set of challenges. Managing cash flow becomes crucial in the build up towards the peak shopping period. The effective management of cash flow throughout the year can help prevent stock-outs during peak periods and can free up capital to purchase stock in larger quantities.
If you need to secure business funding to purchase stock, train staff, or make adjustments to meet the demand over the peak period – how you manage your cash flow can impact the probability of being approved for funding.
Its better to be prepared than lose out on opportunities that could increase your business’s revenue potential.
2. Help your customers manage their cash flow
Your customers may also be strapped for cash during the festive season and may have some of their own cash flow problems. You can make it easier for them to purchase goods by offering a Buy Now, Pay Later facility (BNPL). A BNPL gives customers the flexibility to make bigger purchases without having to pay upfront, without it affecting your cash flow. If you want to learn more about it, the steps to take to apply for a BNPL are very straightforward.
3. Partner with another business
Using your network can have a positive impact on your own business and others. Take advantage of forging business partnerships where you can offer multiple products or services at a competitive price. Although the agreement would need careful thought and consideration, forging business partnerships can be mutually beneficial.
An example would be to offer customers a voucher with a bundle of products or services provided by your business and your partners business. Some partners’ also launch joint campaigns to boost sales with half the spend.
4. Combine sales with acts of charity
The festive season is marked by fun, festivities and showing generosity. It’s the season for giving, and people are more inclined to do good and make contributions towards charitable causes.
As a business owner, its your opportunity to show that you care by making a contribution towards an organisation that makes an impact in the community. You can do this by giving customers the option to make a donation towards a foundation or organisation of your choice, in addition to their purchase.
It’s also a good opportunity to build brand awareness, and generate sales. By donating a percentage of your sales towards charity you can make a difference and help your customers do the same.
5. Decorate for the festive season
The festive season is well known for businesses going all out with decorations. People are starting to wind down and relax and want to enjoy the cheer that the season brings. Your business can participate in the festivities through decorations or incorporating elements and details of the season into your offerings or marketing.
6. Take a break to recharge for the new year
It shouldn’t be all work and no play. Although its important to start planning for the new year, it’s important to take a moment for yourself to refresh in order to recharge for the new year. Taking a break can often lead to greater success, as you are re-energised for the new year and see things from a different perspective.
It’s good to be prepared, plan ahead, manage forecast cash flow so that you don’t miss out on valuable sales opportunities over the festive period. Lula’s powerful cash flow manager, Lulaflow, which is built into all our business accounts, can help you budget better and take control of your cash flow.
You may also encounter cash flow dips during slow periods where sales are not that great. To get you through those slower patches you may want to consider business funding.
Take a hold of new opportunities. Access up to R5 million in business funding within as little as 24 hours to make cash flow over the festive period.
