Business preparation at Christmas
For many businesses, Christmas is a profitable time of year. With that in mind, it’s important to have a solid plan in place for the season. In this guide, we’ll explain how to ensure your company is ready for the festive period.
Monitor trends
Market research and analysis can be key to a successful Christmas period. If your business has been operating for at least a year, look at holiday figures from previous years to assess buying behaviour and identify trends. Do you notice an uptick in general sales or are particular products in demand? If this is your first Christmas trading, be sure to implement analytics to enable you to track activity – it will be insightful for next year.
You can also get more information about your customers’ Christmas shopping habits and preferences using a simple survey. Plan your questions carefully to ensure they deliver useful data.
Source the necessary stock
Once you have some insights into how your customers are shopping, what they’re buying over the festive period, or when they’re using your services, you can plan what stock you’ll need. If you sell more luxury products during the festive period, for example, or add seasonal lines for Christmas or the new year, you may need to source extra supplies to meet demand. Planning and budgeting in advance enables you to have the funding available for additional stock, or to secure external finance to cover it.
Review your finances
While the festive season can bring additional profit, it can also incur extra expenses. A review of your business finances will help you to determine your capacity to hire seasonal staff, source stock, pay for marketing activity and more. Work with a trusted accountant to ensure your cash flow can be managed effectively, and to calculate how much money you’re likely to need.
Consider pricing
The holiday season comes hot on the heels of Black Friday sales, so bear this in mind when you’re working out promotional pricing. Do you want to offer percentage discounts that differ from Black Friday offers? Will you select specific lines for two-for-one deals? When planning pricing, you’ll need to consider both your margins and your customers’ wallets. The ongoing cost of living crisis means many households have less to spend, so it’s important to find the balance between making a profit and offering attractive prices to customers.
Plan your marketing
Marketing is an essential part of a successful holiday season. Ensure you have a strategy in place and clear goals that are based on the knowledge you’ve gained from analysing previous data. Decide which channels you want to use and how much you’ll need to spend, and create a compelling message supported by engaging content. The design, style and message of your campaigns should be consistent across all your channels.
Help from a professional accountant
If you need to review your business finances for the festive period, create a cash flow management strategy for the coming year or get to grips with your tax obligations, seek help from a reputable accountant.
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