It is not easy to make money these days as a small business!
Ok, so I am stating the obvious. At this time of year sales are massively important, in fact, and this may surprise you, Christmas is the busiest time of the year for Coca-Cola.
What goes hand in hand with sales?
Inventory or Stock in UK.
It is common to order stock some time in advance, indeed in Clothing several months earlier. With this in mind you often pay for stock well before you get paid for it.
This one fact may push you into an overdraft situation.
Many go outside agreed level at this time of year, and again just as often, it becomes unauthorised and costly.
So what can we do?
Firstly, do not be bullied into purchasing stock you do not feel comfortable taking. Suppliers will push you to increase range and quantity to suit them. Remember you have to pay for this. The risk is all yours. They will be paid and job done!
Secondly, and I promise you this does matter, now is the time to get Debtor Days down. Time to look at all the unpaid customer invoices. Have you really kept on top of the debtor days? Do you like paying bills at this time of year? We have just established that money will be tight.
Personally, yes, personally take the time to visit if possible all the customers with their overdue accounts. If needs be take them a Christmas bottle, thank them for their trade, and at the same time remind them you need account settling. Be nice but firm. It is your money. Getting money in, is as good as sales. It is essentially pure profit. Not in the normal way, but trust me money in the bank that saves you borrowing is a bonus!
Thirdly, get rid of unwanted old stock now! Before Christmas period. Clear the shelves and get new stock to the front. Better a small profit on old stock than dusty debt.
Finally, if you are in retail, tidy up your window, make it appealing, make it SING. Rearrange store layout. Fast moving to the front. If service led, contact people you have dealt with, send them a card, or better still ring them and wish them seasonal greetings, enquirer if they are happy with work done etc. Always remember to ask for a recommendation, what is the worst they can say? Most businesses rely on good will/ recommendations.
Put your house in order now!
Let’s make some money this Christmas
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