With Thanksgiving and Black Friday behind us, it is safe to say that at this point, you are aware whether or not you took the appropriate steps to survive the holiday rush. The holiday season brings a high chance for profits, but if not prepared for correctly, you could end up over-staffed with little inventory — losing your hard-earned money. Here are 5 ways you can better prepare for the rush so that you may finally reap the benefits of these consumer holidays!
#1: Review Last Year’s Numbers
Before you begin, start by conducting an in-depth look at your last year’s holiday sales. Study the economy then, versus the economy now, and determine what that may mean for your business. Are you likely to sell more, sell less, or remain the same? By understanding these numbers, you can better predict how much inventory to purchase, how many holiday employees to hire, and any other extra expenses.
#2: Create a Strategic Plan
With last year’s numbers burned into your head, you should now be able to create a strategic plan of action for your business’s holiday rush. Here are some things your should outline:
- How much inventory to purchase and when to purchase it
- How many sales you will be carrying out
- How you would like to promote your sales
- How many employees you need and when to begin hiring for the holiday rush
- What hours you will remain open over the holidays
- Any repairs or cleaning to be done before the rush
In order to make the most out of the holidays, you need to prepare at least 6 months ahead of time. Begin by scheduling meetings with every division of your company. In order to survive the rush, you need strong collaboration and communication with your team. Meet once a month with your company to discuss action items and make sure your strategic plan is being accomplished.
#4: Spruce Up Your Policies
In order to go completely unscathed during the holidays, it is essential that you give your policies another look. Today, scammers know more than one way to go about getting free goods and services from a business, and many of them involve loopholes. Check your shipping policies, your customer service policies, and your return policies before opening your doors to holiday shoppers!
#5: Accounts Receivable Financing
As the economy steadily grows healthier, it may be wise to plan for a bigger year in sales. Though this typically costs more upfront, the end result is normally pretty satisfying, especially with accounts receivable financing. Through accounts receivable financing, your company can sell its unpaid invoices for faster cash, allowing you to purchase extra inventory for your holiday rush without the interest rates of a bank loan.
Interested in learning more about accounts receivable financing for your holiday rush? Contact Porter Capital today!