Walk into any supermarket and you’ll be met by a full-on festive onslaught of mince pies and other Christmas snacks.
It might all seem a bit early to be getting a mince pie, although no judgement if you do buy one, but the supermarkets may have caught a trick that many businesses miss.
Christmas brings with it significant market changes with businesses either facing a drought or a boom in trade, depending on the sector in which they operate.
Given that change is coming either way, we want to help you prepare your business now so you can make the most of the festive season.
It might feel instinctively wrong to be talking about Christmas before Halloween, but your business cannot afford to stand on ceremony.
Regardless of whether you personally celebrate Christmas or any of the other holidays in the festive period, Christmas does dramatically change the way that businesses operate in the UK.
Schools close, staff take leave, suppliers pause and customers’ habits change.
If you plan to close for any length of time, you need to check that the break will not damage your cash flow or force rushed decisions on invoices, payroll or supplier commitments.
Setting aside a small contingency now makes it easier to take a proper break without worrying that the business will suffer in your absence.
Taking time away from the business can also provide you with an opportunity to rethink your financial strategies and pave the way for more success in the New Year.
For other companies, Christmas is an opportunity to tap into a booming market and acquire vital funds needed for future investments.
Knowing how best to make the most of the festive season will ensure you do not overextend and miss out on this valuable opportunity.
As great as it may feel when business blossoms during the festive season, any increase in revenue should not be taken as a guarantee of future success.
Instead, it can be seen as a useful injection of funds that can strengthen your working capital and provide the resources needed to cement growth.
It is often necessary to bring in extra staff to make the most of the increase in business and ensure your existing team does not feel overwhelmed.
When onboarding seasonal workers, ensure you are equipped to handle their payroll needs from the minute they begin work with you.
You must pay at least the National Living Wage (NLW) or the National Minimum Wage (NMW), depending on age, and adjust pay the moment someone ages into a new band.
The current rates are:
If your business handles tips and gratuities, now’s the time to make sure your processes are compliant with the Employment (Allocation of Tips) Act 2023.
Employees are entitled to 100 per cent of the tips they receive and, unlike in other parts of the world, tips cannot be used to top up wages.
You should have a clear, written policy that sets out how tips are pooled and distributed.
Many businesses operate a tronc, a tip-pool managed by a designated troncmaster, and if you use this system, make sure the troncmaster is named in your policy and that distributions are transparent and recorded through payroll.
Whether you’re braced for a boom or a lull, practical planning and good advice will help you make the most of December.
We can help you forecast cash flow, decide whether to invest in stock or staffing and structure temporary payroll changes so everything remains compliant.
Your business is unique, so we work closely with you to figure out the best approach to the festive season.
Give yourself the gift of a calmer, more profitable New Year. Speak to our team today!
