All I want for Christmas is more staff
For most, Christmas is a time for festive feeling and a little overindulgence. For small business owners, it’s a time that can bring worry about cash flow
It's beginning to look alot like Christmas and, while 'tis the season to be jolly for most, the festive period can be a difficult time for many business owners. Retailers have, in recent years, put so much effort into competing with online platforms such as Amazon that some have neglected their brick and mortar stores, which could lead to a decline in the quality of customer service.
As a result, this year it's expected that retailers will put more effort into their sales floors, and taking on more staff to deal with the spike in customers will be high up on the cards for many business owners. However, can you really afford to step up hiring around Christmas?
August retail trade figures
The Australian Retailers Association (ARA) announced lower than expected August trade figures. They recorded 2.13 percent total growth year-on-year, with ARA Executive Director Russell Zimmerman claiming increased energy costs, higher tax burdens and an inflexible wage system all played a part. The monthly movements are worrying, with total sales reducing by 1.27 percent from July to August 2017.
For businesses in the run up to Christmas, this presents a problem. While higher volumes of customers and sales normally requires more hands on deck, if growth is slow, can these companies afford to finance the new hires?
Improving cash flow over Christmas
On top of this, Christmas can be a difficult time for cash flow more generally. Many businesses shut down for the festive period, or are slower to pay their bills than usual. At the same time, you have to find money to hire extra staff, as well as pay for the office Christmas party and all the other extra expenses that come with the holidays.
It's important you start budgeting and, if possible, setting aside cash now to cover the Christmas shortfall. It's also a good idea to take out debtor finance. This will give you the capital injection you need to get you safely through the Christmas holidays, by using your outstanding invoices as collateral.
Want to know more about debtor finance? Give the team at Classic Funding Group a call today to make all your Christmas wishes come true (or at least, your cash flow-related ones).