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For many companies, managing business finance over the Christmas period can be difficult. For wholesalers, this time can be particularly busy as many businesses require a higher volume of supplies. Preparing in advance for these times can lead to less stress on your staff.
The busy period doesn't have to be characterised by stress, but rather, used to secure profits for your business. The Australian Retail Association (ARA), alongside Roy Morgan Research, estimates that Australians will spend $46.7 billion from November 15 to December 24 this year.
In order to make the most of this trading boom, businesses must plan in advance as ARA Executive Director Russell Zimmerman noting that November sees many consumers eager to finish shopping early.
"While the week before Christmas is traditionally the biggest shopping week of the year, there are plenty of consumers who like to be prepared and get in early, with a good deal of Aussies starting to tick items off their Christmas lists from mid-November onwards," says Mr Zimmerman.
Here are some tips to help guide you through this period and effectively manage your business finance:
Staying well-organised is essential to business success and even more so during the Christmas rush. Accurately knowing your inventory allows you to know how much stock is required and exactly what is needed to be sent out at different times.
If need be, order extra stock so you are able to supply your clients with any unexpected requests.
2. Assess staffing needs
The busy period is also well-known for annual leave, with many businesses finding themselves short-staffed. Ensure you are aware of what your capacity is during this period and whether temporary workers are needed.
If extra staffing is required, using payroll finance can help ensure they are getting paid on time without concerns about your financial capabilities to do so.
3. Approach credit strategically
In some cases, it may work in your favour to offer incentives to distributors. However, this requires a careful balance and must not affect the cashflow finance at your disposal. Utilising debtor finance can ensure you are in a stronger bargaining position.
4. Prepare early
As mentioned earlier, more Australians are completing Christmas purchases in November. Wholesalers need to be prepared for the shopping rush to start earlier which may require supplementary business funding to meet the needs of their clients.
5. Plan for the post-busy period
As important as the Christmas rush is, a business must go on as usual afterwards. Ensure your company is in order, that invoices are well-organised and paid on time so that after the rush, you are able to continue as normal.
For wholesalers, the busy period is an opportunity to take control of their profits for the year. By staying on top of business finance needs and using these tips as a guide, your company can reap the benefits of the Christmas rush.