With Christmas rapidly approaching we know many retailers are preparing (or more likely, in the throes of) their busiest time of the year. However, for many SMEs not in the retail space, the holiday period promises a slowdown that can be hard to manage. Here at Carbon Group we thought we’d tackle these two issues head on for you with a few tips and tricks to help guide you this festive season.
Top three tips to help retailers manage the busy period.
- Remember, large sales and high levels of staff typically mean larger than normal GST, PAYG and Superannuation bills due in February. Make sure you plan accordingly and put aside enough money to cover these expenses.
- It’s all about supply, demand and being prepared. Make sure you thoroughly track your stock, maintain a high margin and make sure you have high turnover stock readily available. This will keep sales turning over and more importantly, your customers happy.
- Manage your people. It is important for retailers to keep a close eye on, and accurately track labour during busy periods. It is very easy to over commit (or under commit) on labour without understanding the implications this can cause.
Top three tips SME’s can employ to manage the holiday slow down and actually enjoy the festivities.
- Run a cash flow forecast. It’s especially important to ensure you have enough money in your accounts to pay wages while your business is closing down.
- Chase your outstanding payments now. The closer you get to Christmas, the less likely you are to get paid. Remember other businesses will be closing over Christmas too and putting aside money for their own festivities, so it’s best to chase payments early.
- Avoid a slow start after the break. Have work lined up for you and your team as soon as you return. Manage your workflow, so it doesn’t take a month to get back into the swing of working.
We think it is important for all business owners to enjoy the festive season and all the happiness it can bring. Worrying about work shouldn’t be high on your list of things to do!
Hopefully these tips will help you manage the holiday season. It is important to note, no matter the size of your business the key things you need to focus on are being prepared, planning accordingly and to keep managing those accounts.
If you think you might need a little help, or would like some more advice, definitely get in touch with our super helpful Accounting team.