Business Strategies for Christmas and New Year: A Guide for Small to Medium Enterprises

Must-Do Strategies for Christmas

1. Manage Cash Flow

• Forecast Sales and Expenses: Analyse historical sales data to provide a guide for this year and adjust your budget to account for increased inventory, operational and employee leave costs. It is also prudent to factor in the current market levels which have been a bit more subdued.
• Invoicing and Collections: Ensure timely invoicing and follow up on outstanding payments. Consider offering discounts for early payments to improve cash flow – and be very careful with payment terms.
• Emergency Fund: Set aside a portion of your budget for unexpected expenses that may arise during this busy period.

2. Prioritise Security

• Cybersecurity Measures: Implement robust cybersecurity protocols, including updated software, firewalls, and employee training on phishing scams. If you are unsure on these, consult your IT professional, as it is cheaper to prevent issues upfront…. than to fix them later.
• Physical Security: Ensure that your premises are secure, especially if you will have reduced staff during the holidays. Security cameras, alarm systems and remote monitoring all have their part to play.

3. Attend to Staff Leave

• Leave Management: Encourage leave to be taken and stagger to ensure adequate coverage. If you are closing for a period, this will also help with managing the outstanding leave hours – with a simple visual leave chart keeping everyone on the same page.
• Cross-Training: Train employees in multiple roles to ensure that critical functions are covered, even when key staff members are on leave.

4. Look After the Client and Project Needs

• Communication: Reach out to clients to discuss their needs and expectations during this period and ensure they are aware of your availability and any changes to service delivery/open or close times. If you are closing, then this is also a good time to book in work for the new year which will give you some quick momentum when you return from leave.
• Project Management: Review ongoing projects and adjust timelines as necessary to accommodate holiday schedules. Ensure that all stakeholders are aligned on project deliverables so there are no surprises.

5. Maintain Work Pace

• Set Clear Goals: Establish specific, measurable goals for the whole period – whether you are just scaling down or even closing for Christmas. The goal setting will help keep your team focused and motivated, whilst ensuring that your business remains financially viable.
• Regular Check-Ins: Hold regular meetings to assess progress and address any challenges that arise. This will foster accountability and maintain momentum and allow any issues to be raised early.

Preparing for the New Year

1. Develop a Comprehensive Business Plan

• Marketing Strategy: Analyse the effectiveness of your recent marketing efforts and adjust your strategy for the new year. Consider new channels and tactics to reach your target audience. In a variable market place – your marketing needs to be nimble and responsive.
• Staffing Needs: Assess your staffing requirements for the upcoming year. Identify any gaps in skills or resources so you can plan for recruitment/training. Consider the efficiency of your team and how you can lead them for peak performance.
• Cash Flow and Profitability: Revisit your financial projections and set realistic profitability targets. Monitor cash flow closely, especially in the first quarter, which often includes a bit of disruption with public holidays.

2. Maintain Momentum in the First Quarter

• Consistent Marketing Efforts: Continue marketing efforts post-holidays to maintain visibility and engagement with customers. Consider promotional campaigns to attract new clients and for all of your marketing – plan and execute well.
• Engage Your Team: Keep your team motivated and engaged with appropriate team activities and clear communication of goals for the new year.

Checklist: Before and After Christmas

Before Christmas:

•  Review and adjust cash flow forecasts.
•  Implement cybersecurity measures.
•  Manage staff leave requests.
•  Communicate with clients about holiday availability.
•  Set clear goals for the holiday period.
• Run for optimum productivity and efficiency

After Christmas:

•  Analyse holiday sales and marketing effectiveness.
•  Update the business plan for the new year.
•  Assess staffing needs and plan for recruitment/training.
•  Monitor cash flow and profitability closely.
•  Maintain marketing efforts to sustain momentum.