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Many business owners look forward to the boost in profits over the festive period, however, it can be a struggle to find the money to purchase additional stock in bulk. Raising the cash to purchase extra items leading up to seasonal periods can be difficult, and business owners with little or no working capital may find it impossible.
We have put together five easy tips to make sure that you can afford to to buy additional stock for Christmas this year:
While it may seem that Christmas is months away, in reality many customers start crossing items off their shopping list as soon as the summer ends! By beginning to build up your festive stock early, you can spread the cost over multiple months, rather than having to buy in bulk later on. Often, suppliers will increase stock prices just before Christmas due to last-minute demand, so buying early will allow you to benefit from the best possible prices.
Don’t base your stock purchasing decisions on the discount you can receive, as some items are discounted for a reason! Make sure that you buy stock that you are sure will sell in a reasonable time frame, based on previous year’s sales information. Although a cheap item may have previously flown off the shelves, you may have actually made a higher profit by selling a smaller amount of expensive products! Working these figures out allows your company to be in the best financial position during the festive season.
Most small business owners will find that they have much less time for paperwork during the festive period, so make sure that outstanding invoices are settled well before the Christmas countdown begins. This will boost your cash flow early, allowing you to purchase the stock you need and maximise profits throughout the festive season. Paying your supplier invoices as soon as possible will make sure you keep on good terms with them, meaning they are more likely to be responsive with last-minute orders around Christmas.
Seasonal promotions are a great idea over the festive period; running both online and in-store promotions on popular days like Black Friday and Cyber Monday. Use marketing to your advantage, making sure to only discount products that you have plenty of, or can easily increase stock levels if your offer becomes popular. If you have a large amount of seasonal stock left in the days immediately before Christmas, consider promoting a last-minute discount on items that you won’t be able to move in the new year.
If your business is taking card payments, then you have instant access to a business cash advance, which can help you to purchase additional stock for Christmas, settle outstanding invoices, and even run a seasonal marketing campaign. If you need to purchase festive stock quickly but simply do not have the working capital to do so – there’s no need to worry! A business cash advance from Quick Capital gives you access to funds in as little as 72 hours. With flexible and simple repayments that are linked to your credit and debit card turnover, your business can be well stocked in time for Christmas without the worry of expensive fixed monthly payments.
Click here to enquire or call 0800 3777 402 to talk to one of our friendly advisors and see how much funding you can receive.
Filed under: Advice