Most small businesses experience some level of seasonality with peaks and troughs in sales occurring throughout the year. Some common causes include the weather, holidays, university terms and the economy.
For some Christmas is their busiest time of year, but for others the seasonal period can be barren.
If your business usually experiences fluctuations at the turn of the year, it’s important to prepare for how you’re going to manage them.
Here are our top five tips for managing dips or peaks in business this Christmas:
Review last year’s sales
Analysing your business’ performance at this time last year can give you some idea what to expect this time around. Don’t forget to consider any anomalies caused by unexpected events like snow days or problems with suppliers and stock. Ideally, you should make a habit of reviewing your business’ Christmas performance early in the new year so you can budget accordingly for the next 12 months.
Manage your cashflow
Cashflow should be carefully managed throughout the year to account for any seasonality, including changing trends at Christmas. If business is usually slow, then you’ll want to save money made during busier periods to see you through. Meanwhile businesses that are busy over Christmas should make sure they have cash available prior to the festive period to invest in stock, advertising and marketing campaigns to help them make the most of an opportunity.