As the end of the year fast approaches, Small and Medium Enterprises (SMEs) are looking for different ways to improve and maximise profit margins from the festive season.
According to Mags Ponnan, Head of Customer Value Propositions at FNB Business, 2016 has been a tough economic year for many small and medium businesses. He says that these businesses have faced various challenges that have affected their survival and this season can offer some relief to their cash flow.
Ponnan, shares a few tips on how to gear up for the season ahead:
- Plan early – To benefit from the increase in spending of consumers, SMEs should start implementing their plans as soon as possible. Always have multiple suppliers to ensure the business is adequately stocked.
- Communicate the seasons specials – SMEs should be constantly updating their websites and use different communication and marketing tools like Twitter and Facebook to publicise festive season specials.
- Extend operating hours – This is an essential avenue to explore if you are serious about increasing your revenue.
- Consider using an eCommerce platform – In today’s digital age, many customers prefer to make their purchases online instead of walking into a store.
- Rewarding employees who will be working – To keep employee morale positive, business owners should recognise and incentivise employees during this busy season. Ensure that there are efficient rosters to accommodate longer working hours especially in retail businesses.
- Invoice early – A myriad of people will be going on leave to unwind with their families and friends, so small business owners should make sure that they send out invoices as early as possible to ensure there is sufficient working capital during this period.
Ponnan encourages SMEs to better prepare and utilise this season effectively to improve their financial standing and increase their bottom line. This will help steer 2017 in the right direction.
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