Holiday Prep for Small Business Owners
The holidays are upon us! As a small business owner, this is both an exciting and sometimes completely overwhelming time of year... Will you be able to maximize sales and profits during this time? Will your team have enough energy to make it through the endless crowds of shoppers? Do you have enough buying power to be able to bolster your normal stock levels to make sure you don't have empty shelves? All of this to worry about, and then you still have to be ready to turn everything over to your tax preparer at the first of the year!
Here is my quick take on Holiday Prep for small businesses.
"A goal without a plan is just a wish." - Antoine de Saint-Exupéry
Do you know what your sales goals are, and how you're going to achieve them? Whether you have a specific revenue goal in mind, or some other measurable that you are wanting to reach.... without a plan, it is probably not going to happen. So, be sure to get specific- write down the goal, and then work out the details of how you're going to get there. What key factors will make this successful? Create your weekly or daily benchmarks that are going to help you get and stay on track! Think through promotions, discounts, media, etc and leverage your tools to CRUSH your GOAL! You should be doing this on a regular basis, not just for the Holidays. If you have an awesome bookkeeper, they probably provide you with a monthly Profit and Loss, Balance Sheet, and Cash Flow Report.... Use these tools and others to make wise choices and strategize.
“It’s not the customer’s job to know what they want.” - Steve Jobs
There is a line out the door. Customers are waiting to pay, to ask questions, to get a gift wrapped, or to complain that the size/color/scent they want is not on the shelf. The same song that has played 8 times today is playing overhead. And you're pretty sure the kids wearing Santa hats are either shoplifting, making fun of you, or both..... This is a normal day for anyone in retail, service, and many other industries from November-December.
It is EXHAUSTING! As the leader of your business, you should find little ways to keep the morale and spirit up everyday, but these 2 months, especially! Handwritten notes to your team, small gifts of sweet treats or gift cards, or video messages of appreciation are a nice way to do this. Annual Holiday Parties can be a great way to boost morale, celebrate the year together, and blow off some steam during the holiday rush! Holiday Bonuses.... they are a thing, and team members do appreciate them.
“Being properly prepared is one of the biggest assets in business.” - Keeth Smart
Post Pandemic business has challenges that are unique, for sure. For the most part, 2022 seems to be looking more "normal" as far as in-person events, etc.... but the supply chain issues have really created some challenges for planning and preparing for the shopping season. Spend time looking at the data from your bookkeeper and decide what your focuses will be this year. Then, ensure that you have enough stock on the shelf to carry you through. Nothing is more painful than knowing that potential customers are leaving without spending $ with you for no other reason than you ran out of what they wanted.
Make sure to evaluate the profitability of each product or service, and try highlighting the ones with more profit margin (these reports should be easy to generate if you've got a great bookkeeping process in place). Be careful not to go overboard on products that will be difficult or even impossible to sell after the season. It may even be the right time to look at other methods for Account Payables processes... are there no-interest terms available with any of your vendors, or is this the right time for a business credit card?
“Making good judgments when one has complete data, facts, and knowledge is not leadership – it’s bookkeeping.” - Dee Hock
Planning for the Holiday season is pretty much just guessing if you don't have solid information to use as a guide for your planning. Bookkeeping is the number one gift you can give yourself and your business if you are tired of making decisions based off of your gut instead of real data. A good bookkeeper is one of the best ways to improve your profits, free up your time, and alleviate stress.
If you're looking for a great bookkeeper in Lexington, Kentucky (or anywhere in the US), we would love to help you grow your business and cultivate the life of your dreams!
