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If you’re like many business owners at the end of a busy year, you might find yourself putting off certain tasks, actions or decisions until after the festive break. However, sometimes there’s no time like the (Christmas) present to wrap up properly and ‘sleigh’ the end of the year.
We asked our business adviser, Marie, for her thoughts on what kind of actions business owners tend to delay at this time of year – and for some festive inspiration to act now!
Don’t delay…
#1: …taking time for yourself
Whether December is generally a busy or quiet time for your business, Marie says it’s important to make sure you achieve a good balance between work and private life.
“There will be always periods of high demand when running a business, and sometimes long hours are necessary. But it’s also important to rest and recalibrate so you have energy to tackle the new year. Remember to offer yourself and your family some proper time off, including totally disconnecting by not checking your phone or emails.”
Read our tips for managing your wellbeing as a business owner.
#2: … communicating your Christmas Trading Hours
Don’t just assume your customers know when you will be open or closed over the festive period.
“You don’t want to lose any business because your customers don’t know your trading hours” says Marie.
“It is a good idea to follow up any customers who would normally order during the time you are closed, if you are closing over the Christmas Break.”
Some ways to communicate this are to change your email signature to advise your shutdown dates, post on your social media channels, email your database or use good old fashioned signs in your window.
For those who order regularly, consider giving them a personalised call to check if they need anything before you go on break – not only is this a considerate way of signalling you’ll be closed, you may even drum up some extra business!
#3: … following up on payments
“If you have customers who are behind with their payment, it is vital that you touch base with them before you shut down to ensure that they know you would like payment before the festive season starts” says Marie.
“It’s a good idea to have a friendly discussion with them reminding them of your agreed payment terms and ask when you will be receiving payment. If you are shutting, you can say you need this to ensure everyone is paid over the Festive Season. When making these calls I always remember they know they owe the money so try and work out why they haven’t paid, and work with them on this”.
“You can also ask them if all is in order for the expected payment date.”
#4: … addressing your cashflow
Unexpected events can impact everyone. If your business serves other businesses, it’s important their cashflow challenges don’t become your own challenges.
It is a good idea to understand your customers payment cycles and if you notice something amiss, address it with them as soon as possible.
Some businesses are quieter at this time of year or also take leave, so they may take a little longer to pay. If this is usual, build it into your cash flow forecasts and planning.
#5: …moving some stock
“This is a peak shopping/spending time for customers so if you are selling stock, and it’s a little dated and needs to be moved, make the price really attractive to move it,” advises Marie.
If they are small and low cost items, think about whether you could promote them as “stocking stuffers” to get customers to consider them differently.
“Have a sale online or instore to generate some extra cash flow and move those slow movers.”
#6: … sharing your workload
Just like Santa, you need your little helpers to get the job done!
“Don’t be afraid to delegate,” says Marie.
To delegate effectively, you could start by looking at your to-do list and what your team could help with. If they don’t know how to perform a certain task you usually do, this could be the perfect time to help upskill them and free up more of your time.
Take a look at our range of affordable SBDC workshops which could help to teach your team new skills.
#7: … meeting your own debt obligations
While you need to mind your own cash flow, it’s important to maintain your reputation as a business that pays your suppliers on time.
“If you are planning on taking some time off then set up your payments to pay while you are away, set the date in advance. Even if your suppliers are closed, your bills will still be due,” says Marie.
If you’re having trouble making your own debt payments, it could be time to seek options for businesses in financial distress.
#8: … planning your staff entitlements
Avoid being a grinch and familiarise yourself with staff entitlements under their award.
“Make sure you are aware of what your staff are entitled to under their award,” says Marie.
“Most awards you will need to pay full and part time staff for the public holidays. If you are closing over the break, also make sure you have checked to see how they will be paid during this time, for example, holiday pay”.
Remember, you can make a reasonable request to your employees to work on a public holiday, but they also have the right to refuse if they have reasonable grounds. It’s advisable to communication your trading hours as far in advance as possible and ascertain staff availability to ensure you are covered.
Learn more about what to do if you are open for business on a public holiday.
#9: … setting clear credit terms
If you don’t already have secure credit terms, Marie recommends putting everything in writing in advance.
“Make sure you have a credit application signed as a personal guarantee and on larger jobs (especially new customers), have a reasonable deposit before starting work.”
“Also ensure that you have a clear scope of works so that there is no miscommunication over the extended holidays”.
Read more about providing credit to customers.
#10: … reviewing your terms and conditions
Marie recommends you set a ‘drawdown’ condition to be paid as you go on larger jobs.
“If you do not have written terms and conditions, then start the process now rather than putting it off.”
That way, you can start the new year off with strong terms and conditions in place.
Here are some tips on how to prepare standard terms and conditions.
#11: … dealing with stress
If you’re feeling stressed about finances or any aspect of running your business, Marie advises it’s a good idea to get help sooner rather than later, instead of hoping the situation will resolve itself.
Learn more about managing stress and anxiety as a small business owner.
#12: … planning for success for the new year
As this year draws to a close, take some time to reflect on what went well for your business, what you can do more of in the new year and what needs to change.
“This is the perfect season to reflect on what worked, what didn’t, and you can make next year sparkle even brighter for your business!” says Marie.
Rather than thinking about next year when it arrives, taking the time now to proactively plan for the new year could be key to your success.
Take a look at our business planning tools and templates for inspiration and find out how to kick off the new year with your best foot forward.
More information
Visit the Finance section of our SBDC website for more tools and templates or book your place at one of our financial management workshops.
If you’d like to discuss an issue facing your business, book an appointment with our free business advisory service.
