The latest guide in our Business High Five series, The SME Guide to Managing Business Finances over the Festive Season, is an overview of how seasonal businesses can improve their business finance operations over the festive season.
The Importance of managing finances during the festive season
The festive season can be a very rewarding or challenging time of the year for businesses. Depending on the industry, or type of product, it can be the biggest sales opportunity for some and it can come to a standstill for others. If it’s peak season, having enough working capital ready to take advantage of the increased demand to meet your targets, purchase sufficient inventory, hire new staff, or invest in marketing becomes a key area of focus.
Our guide shares insight on options you can explore depending on the seasonality of your business and how the festive season impacts it.
Understanding how the festive season impacts your industry
During this time there are many strategies that can be put into place to manage changes and importantly, manage a positive cash flow. So while different strategies will work for different businesses, the one thing all businesses will need is a cash flow forecast.
Learn more about how a forecast can help you keep track of your cash flow.
Start preparations early
The nature of your business makes for distinct approaches to consider when preparing to manage your finances during the festive season. You might need more strategic financial planning to meet your responsibilities. Consider the tips we’ve shared in the guide to help start your preparations.
Tips to manage your cash flow during this time
From lengthening payment terms, which can cause a lag through supply chains, to slow business activity and drying up income there’s much to consider during the festive season for seasonal businesses. While everyone prepares to celebrate, business owners might find themselves preoccupied with ensuring that cash flow shortages don’t hinder the progress of their business over the festive season.
We’ve shared cash flow management techniques that are proven to assist with these seasonal challenges.
Leveraging business funding
Sometimes, despite your best efforts, you may need a financial backup plan. Learn more of the options you can explore in our latest guide.