Top Christmas Trading Tips for Small Businesses
For small businesses across the UK, the run up to Christmas can be an extremely busy time of year, with owners and managers bracing themselves for the festive rush.
As businesses prepare to meet large surges in demand caused by seasonal trading, Bibby Financial Services warns owners and managers to have sufficient funds in place, stock ordered and resourcing under control – as business rivals pull out all the stops to secure their share of the peak in demand.
David Robertson, chief executive of Bibby Financial Services, says: “The busiest time of year is fast approaching and it’s a great opportunity to increase sales, maximise profits, gain new customers and show your employees and loyal customers that you really value them. With a little advanced planning, smarter businesses can use the festive period to inject cash into the business and gain advantage by getting ahead of the competition.”
To help owners and managers maximise the opportunity that Christmas trading brings, Bibby Financial Services gives the following tips:
- Be prepared – get your business in shape well before the Christmas rush. You may need to rearrange space for decoration, accommodate customer overload, or require extra equipment – early preparations will help you focus your efforts and ensure things run smoothly throughout this busy period
- A helping hand – don’t underestimate the importance of having enough staff on hand. Whatever sector you operate in, you are likely to be swamped with extra customers needing help and advice in the run up to Christmas. Make sure you have sufficient trained staff at the ready
- Put the word out – trade magazines and local publications plan seasonal issues several months before and this can often be a good time to boost revenue via increased advertising. Find out the deadlines publications have for holiday advertising well in advance in order to avoid missing out. Many publications will often have last minute spaces available
- Stock up – December sales can often be hard to predict so cater for all possibilities. Talk to your suppliers to get flexible ‘sale or return’ deals that allow you to return unsold stock. Also consider putting plans in place for a January sale to help clear the shelves
- Have a Plan B – no matter how comprehensively you plan for a holiday, accept that something may still go wrong. Protect yourself by having a contingency plan in place. For example, if staffing requirements exceed your expectations, contact a temp agency well in advance to make sure backup is available
- Keep the cash flowing – when taking on more work, it is even more important that you have suitable financing in place. Otherwise you could find yourself in a position where you are unable to fund new orders and have to turn customers away as the business peaks. Invoice finance is one such option which can help improve cash flow by releasing up to 85% of the cash tied up in unpaid invoices as they are raised
- Store ideas – part of being proactive in holiday planning is to make it an ongoing effort. Set up a system to store good ideas when they strike, even if it’s months before Christmas, and involve all employees for their feedback and advice
- Getting personal – the stress of busy holidays for a seasonal trader can often wreak havoc on relationships with family and friends. Make sure those close to you understand the pressure you’re under and support you through the busy period
- A business plan is for life – don’t just consider the Christmas rush as prime trading time. Look at other parts of the year where your business is busy and apply what you’ve learnt during the busy Christmas period to these
