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A cash advance for business owners could help companies that struggle around the festive period.
At present around a quarter of UK businesses fail to plan financially around Christmas. Business owners can take advantage of a cash advance to see them through any seasonal disruptions.
Factors such as seasonal holidays, weather, religious celebrations and political issues can influence or disrupt a company’s trading cycle. This can lead to worrying cash flow issues. We’ve put together 4 key tips to help you overcome seasonal peaks and troughs throughout the year.
Know your seasonal cycle
It is essential to know your company’s business cycle throughout different seasons. Analyse previous years’ sales to discover highs and lows within the business. This can be a challenge for new companies, as you won’t have previous data to analyse. A great place to start is by considering your competitors seasonal cycle. Keep an eye on the competition to see what promotions they run at different times of the year. If a business has been trading for several years it is a lot easier to find seasonal cycles. No two years will be the same, but it will be useful when planning and forecasting.
Encourage sales with seasonal promotions
With the analysis of previous activity, you can plan for the times when seasonal dips hit the hardest. Planning promotions around these times is a fantastic way to drive sales. Consider a “mid-season sale” to sell off last season’s stock filling your premises. If you don't have excess stock, run mid-season sales by offering discounted services.
Be prepared for busier periods
Make sure that at busier times of the year your business is fully stocked. It is worth hiring extra staff to ensure a great customer experience. If you’re a restaurant or pub owner, you may need to recruit extra staff around the times that you’re running discounted offers on food or drinks. Maintain good relationships with freelance or seasonal workers, it's a great way to stay prepared for busy times!
When forecasting cash flow for the coming year, seasonality is one of the most critical elements to consider. Many businesses suffer from cash flow issues around the festive period. Effective planning is one of the easiest ways to overcome this issue. Reviewing previous years’ figures is key to ensure that you have sufficient working capital throughout seasonal peaks and troughs.
Quick Capital provide a simple and flexible cash advance for business owners. It can help you overcome seasonal disruptions. A business cash advance is a simple way to raise finance to purchase stock or boost your cash flow. A cash advance for business owners is the perfect way to cover unexpected costs quickly.
To find out about Quick Capital’s cash advance for business owners, call one of our advisors on 0800 3777 402 or visit www.quickcapital.co.uk
Filed under: Advice