The lead-up to Christmas is an important time of the year for businesses to boost their profits, with 4.7 million adults intending to spend more than usual on Christmas presents this year. In light of this, small business credit card company, Capital on Tap, has shared expert tips to help small businesses make the most of the lucrative festive period.
Top tips for businesses to prepare for the festive season
Whilst businesses ideally won't rely solely on peak periods, it's important that they can make the most of the Christmas demand.
"The festive season gives small businesses a great opportunity to boost their sales and attract new customers. It's the one time of year that the majority of people within the UK will be looking to purchase items at the same time. However, navigating the year's final months requires careful preparation." Alex Miles, COO and UK Managing Director at Capital on Tap
1. Understand how the season will impact your business
Carry out research to understand how seasonal fluctuations impact businesses in your industry. In the short-term, creating a cash flow model can help you further understand what money is coming in, and out, of the company. Business credit cards can help you with this, as they provide detailed statements and categorised expenses to help you keep track of your finances.
Looking ahead to Christmas 2024, recording data and observations throughout this years festive period will allow you to understand important milestones, such as when your customers first start looking for Christmas purchases. This will help you get a clearer picture of the business demands and make sure you have the necessary resources to meet them.
2. Hire temporary workers
The lead-up to Christmas can be a very busy time, so you may need to employ more staff to help cope with the increase in demand. However it's important to consider long-term factors and avoid any knee-jerk reactions. Consider hiring temporary workers to give flexibility over your expenses. Aligning your workforce with your business needs will allow you to optimise your resources and adapt to the changing demand.
3. Learn from your competitors
A great way to attract and further understand your target audience is by keeping an eye on what your competitors are doing. This will help you develop an understanding of what works, and what doesn't, and give you areas of improvement to consider in your own business. Don't hesitate to also talk to other business owners. There may be opportunities for collaboration, such as social media giveaways, but it will also help broaden out your network.
4. Utilise social media
Social media continues to be a useful tool to market your business, but with the majority of businesses promoting their products in the lead-up to Christmas, it's important to stand out. There are lots of fun things that you can do to create engaging content and, more importantly, build a community.
If you run a Christmas tree company, for example, you might want to consider posting fun-facts about the origin of the trees you sell, or some more creative ideas about how they could be decorated this year.
Some other ways to promote your business and attract customers include running giveaway contests, partnering with social media influencers or bloggers and holding festive events for repeat customers.
5. Offer your customers purchase incentives
While Christmas can bring a surge in demand, you'll also find a surge in competition. Offering discounts can attract new customers and further help you stand out from the crowd. Some potential examples include:
- Christmas gift bundles: Offering a group of products at a discounted price.
- Early bird discounts: Reward customers who choose to do their Christmas shopping early with you.
- Free gifts with a purchase: Give customers a gift when they spend a certain amount.
6. Invest wisely
Last year the average Brit spent £642 over the Christmas period. Whilst this can give a big influx to your business, it's important to consider what you do with this extra money. Putting this aside to help you through the potentially quieter months of January and February can help set you up for financial stability throughout 2024.
Copyright 2023. Featured post from Capital on Tap.