Tips for the Christmas Closure Period

We are alreadyseeing plenty of businesses closed for the holidays.  Our office is closing lunchtime Tuesday 23^rd.

There is a bigflow on effect of the closure of so many businesses and the leave being takenby people across the board even in businesses that aren’t closed.

This time ofyear can be quite testing for businesses given shortages of staff and alsotightening of resources as cash flow gets squeezed between the costs notstopping but the income does.

Here are some tips for this period of the year to navigate these challenges and also strengthen for the future.

1. ForecastYour Cash Flow Now

Create a simple cash flow forecast for December and January. Factor in expected expenses like payroll, rent, and supplier payments, as well as anticipated income. This will give you a clear picture of potential shortfalls and help you plan accordingly.  Pay close attention to how tight this gets on paper and then in real life and make a good reminder for next year to consider how to stop that being the case every year.

2.Prioritise Essential Payments

Identify which expenses are non-negotiable (wages, superannuation, tax obligations) and ensure these are covered first. Consider negotiating payment terms with suppliers to ease pressure on your outgoings.

3. Hold Back Non-Essential Spending

Delay large purchases or discretionary expenses until your cash position improves in the new year. Be mindful of your business’s priorities and avoid overextending.

4. Really Review Your Opening Hours and Rostering

The demand for your services can fluctuate wildly this time of year compared to the rest of the year.  Some businesses may experience a much higher demand as people are on leave and looking for things to do or getting ready for the holidays.  Other businesses may see a significant decrease in demand if surrounding businesses are closed so no foot traffic locally.  

Really consider what this may look like for your business and consider that in your rostering and even your opening hours.  If you aren’t going to get the demand for your services, then make the changes and communicate it well to customers through signage and social media.  If you are unsure then use this season as research and pay close attention so you know what to do for next year.  

We have seen this have a huge impact on stress and profitability understanding this and fixing it for the next year.  No point being open if there isn’t enough traffic coming to justify the costs.

5. Promote Your Plans

With so many closures there are people looking for things to do and plenty that are unsure who is open and who is closed.  Look to take advantage of this to either give yourself a break (i.e. change your hours and communicate it well) or push the fact that you are open and what you have to offer.  Can be a great time to ensure you don’t miss out on customers if you are planning to be open.  Can also create a point of difference and promote it to capture a new audience.

Good luck withthe holiday season and make sure you find time to take a break for yourselvesin there too.

‍