5 Holiday Cash Flow Tips
The end of the year is a great time to think about money – today we have a guest post from Carolyn K. from the BlogContentGuild.com – take it away Carolyn.
The holidays have descended upon us, and the end of the year is rapidly approaching. If you are a business owner, you’ve probably noticed how difficult it can be to manage cash flow around this time of year. One of the greatest things about November and December is that your sales usually go up during these months. One of the worst things about this time of year is inventory management and order management become more difficult largely because of all the sales you you’ve made.
Here are some tips to help you control your cash flow this holiday season:
1. If you sell goods, double-check your inventory every day. Don’t solely rely on the stock information logged in the computer. Clerical errors are easy to make, and you could end up thinking you have enough of a product to go around when you simply don’t.
2. Make sure you ship orders or deliver services to customers in a timely fashion. Customers don’t want to wait around for you just because it’s a busy time of the year. They expect what they ordered to reach them as soon as possible, just as they would expect any other time of the year. You and your employees may need to work overtime around the holidays to ensure that customers are satisfied with your swift service.
3. If your customers pay you on a monthly basis, make sure you call or email them to remind them about their payments in November, December, and January. These months are when customers are least likely to pay you on time because they have a lot going on in their lives and many of them are low on cash. However, the health of your business during the holidays may depend on payments received.
4. Have a talk with your employees about stepping up their game around the holidays. Everyone at the company needs to be on the same page and devoted to accomplishing all necessary goals before Christmas and in between Christmas and New Years. You might want to ask employees to work overtime for a few Saturdays just to make sure everything gets done.
5. Don’t be too hard on yourself. Mistakes happen. If you and your employees work your absolute hardest during the holiday season, your company’s cash flow situation will remain favorable.
Some great ideas from Carolyn – we’d love to hear your thoughts on holiday cash concerns. Let us know what you think in the comments below.
Shawn Kinkade Kansas City Business Coach
Photo by TibChris