As a nation, we spent a massive $10.7 billion on Christmas last year, with Queensland alone splashing out with $2.1billion to celebrate the day. This spend is great news if you are in the retail industry, however, if your Small Business slows over the festive period thanks to office closures or a downward slope in your industry, then Christmas can be a taxing time for you and your business.
This article will look at how you can prepare for, and get through, the Christmas Cash Flow Crunch this season.
Be Smart with Your Party Planning
Sharing the Christmas cheer with a party for your staff and clients can be a big expense for your business. Regardless of the type of event that you’re planning this festive season, being smart with your Christmas party planning means that you can avoid the Christmas Cash Flow Crunch.
Keeping a festive event within budget can be a tough task, especially if you have left your planning to the last minute. However, there are a few things you can do to keep your party planning within budget and share the festive cheer far and wide. You can negotiate venue minimum spends, limit your bar tab to certain drinks such as wine and beers, or by keeping your event simple and with more of a networking style or by choosing to serve canapés rather than a full sit-down meal.
Looking to attend an event in the new year? Find out about our Things to Know About events by contacting us now.
Get Paid
One way in which you can help avoid the Christmas cash flow crunch this year is by ensuring that you have been paid for the work that you have done over the last few months and by getting some pre-Christmas cash in the bank. Although debtor chasing probably is not high on your To-Do list this December, making the calls and getting invoices paid will provide a nice boost to your business if things are slowing down over the festive period.
Find out how to remove the friction to get paid faster.
Focus on Getting Things Done
If your business is starting to slow as Christmas gets closer, it is time to focus on the things that you can get done while things are slowing to set yourself up for a great New Year. Get your business administration up to date, reconcile your bookkeeping accounts, collect your tax documents together and forecast out the new calendar year (talk to us if you need assistance). Essentially, do those business tasks that you have been putting off for a rainy day. Staying busy will help you keep momentum and put you on the right path for when things pick back up.
Thank Your Clients
Christmas is the perfect time to remind the people around you just how important they are to you – including your clients. Take this festive period as an opportunity to thank your clients for supporting you and your business over the last year. Like in the budget section, if budget it tight, get creative. Organise a relaxed event, send an email or e-card or make a call. Whatever you chose, reach out and share some Christmas cheer in a budget-friendly manner to help avoid the Christmas cash flow crunch.
Get Finance
If you are feeling overwhelmed with the Christmas cash flow, then getting finance to get you through this period is a great short-term option. With industry slumps during this period, it can be challenging to keep the Christmas lights bright, and business finance can be a great solution to adding some cheer back into the festive period. Especially if you know your industry will peak back up after the New Year or you have some projects coming your way, finance should be used as a short-term solution.
If you would like to organise Finance to help with the Christmas cash flow crunch this year, contact our Finance team on 07 3367 3155 or email finance@walkerhill.com.au
