THE “C” WORD! (Christmas, Cash flow .. )
It’s that time of year, folks, Christmas will soon be here and for many businesses it is THE busy time of the year and they will have been plotting and planning since the summer.
For seasonal businesses, cash flow at this time of year can be hard – stock needs to be planned and purchased ahead of time whilst predicting what the sales will be and what will be those key lines and items that everyone wants to buy. So what can you do to help?
· Plan well in advance for what you need and when you need to pay for things
· Set cash aside ready, have a business savings account and put money into it ahead of time
· Look at financing options:
o Can you extend terms with suppliers?
o Can you get a short term overdraft?
· Look at promotion options, can you pull any of those sales forward so that you get cash in sooner?
And remember, when you support a small business, they do a happy dance every time a sale goes through!