The silly season is upon us, with Christmas less than a few weeks away. Christmas parties are being planned, and the Christmas shopping frenzy has begun.
For business owners, the Christmas rush can be either your best time of year, or an absolute nightmare. How can you prepare to ensure your business is well placed to come out on top after Christmas? Here are a few strategies to help you through.
Stock
Having enough of the right stock is a fine balancing act. You need to ensure your stock systems are up to date to be able to determine what’s selling and what’s not, and stock accordingly… quickly. This could entail a day-by-day review of what is and isn’t sold, and regular reordering from your suppliers of hot selling products. You do not want to be in a position where you run out of popular items and lose sales, but neither do you want to be holding a large amount on unsold stock that you need to sell after Christmas. If an item is not moving, then the faster you know this the better, so that you can counter by either returning slow moving stock items, review pricing or change the way the product is promoted to get buyers attention.
Delivery
A lot of customers will be shopping just days before Christmas. Now is the time to review your delivery options and ensure that they are going to be able to meet the demands of your customers. Time frames and costs of delivery need to be clearly, communicated with customers. This is especially important if you are making online sales. You do not want to end up with disappointed customers because they could not take delivery of their purchases before Christmas.
Staffing
Make sure you have enough staff on to be able to meet the extra demand of the Christmas rush, and maintain your current level of care and customer service. Staff that are stressed, or under pressure can sometimes “drop the ball” on customer service or deliver an unpleasant shopping experience. If you’re not sure that you have enough permanent staff, consider bringing in temping staff for the busy periods.
Cash flow and the Tax Man
Careful cash flow planning is also a must over the holiday period. Especially if after the Christmas build up your business closes for the holidays. Unfortunately just because you’re on holiday, does not mean that suppliers, staff and of course the Inland Revenue Department are happy to wait for payment.
Remember that GST and Provisional Tax are due to be filed and paid to the IRD on the 15th January. If possible, meet with your accountant before Christmas to assist you with attending to the preparation, and filing of these returns ahead of time.
In addition, December bill payments to suppliers will be due to be paid on the 20th of January. To plan for this, set funds aside and make use of your internet banking to schedule online bill payments before going away. That way, you can enjoy your holiday without those stomach lurching thoughts like… “did I remember to put through the wages yesterday?”