How to set effective business goals for your small business
Whether you are a start-up business or a flourishing SME business, it’s important to remember that every successful business makes a point of setting business goals.
23rd November 2021
Whether you need to hire seasonal workers or prepare for increased demand, you should expect the unexpected for upcoming holiday seasons. By planning out your finances and making a roadmap for your team, you will be much better prepared for whatever comes your way.
As many businesses recommence full operations and begin preparations for the Christmas period, the impact of global supply chain disruptions can mean order fulfilment -the ability to meet customer demand - will require businesses to be agile and prepared for a multitude of scenarios
Retailers, wholesalers and dealerships in all industries are, in some cases, months behind on their inventory, with the earliest expectations for the market to catch up indicated as being early 2023. That, in addition to the pressures of interstate and overseas travel restrictions, increasing shipping costs, vaccine mandates and unpredictable customer sentiment, means it’s critical to avoid any further disruption and ensure you are in a strong position to make up for any lost time.
Here are some strategies to guide you through this year’s holiday season:
Businesses with seasonal fluctuations rely on short-term labour for the busiest times of the year, especially around the holidays. However, many business owners are apprehensive of bringing on new workers due to a variety of factors beyond their control this year.
Businesses that hire seasonal staff should plan for them by looking at their figures from the last few years. By looking at revenue and payroll data from 2018, 2019, and 2020, they can create a loose mode that will provide some insight into the minimum amount of extra help they will need. Maintaining a strong brand image and promoting best practices to new employees, will be imperative to a successful holiday onboarding.
Controlling business cash flow is, as always, going to be the most essential piece of a successful holiday season. Given the many delays in the global supply chain, planning ahead with finances will go a long way in ensuring the business can pay its bills and remain sustainable.
Defer unnecessary purchases until next year and only place orders that are essential to your success in the holiday season. When you are placing orders, suppliers are often willing to accommodate deferred payment arrangements.
If you have customers who wait for the last minute to pay their invoices, now is the time to break those habits and collect your outstanding payments. By collecting your invoices on time, you will be less likely to fall into a cash crunch.
Here are a few invoicing tips to implement if you have customers who are behind:
Demand forecasting is the practice of mapping out future demand for your goods and services based on past sales data. By combining your historical data with overall market sentiment, you can build an effective model to predict what your sales can be and how you should prepare your inventory.
While there are different forecasting methods that each have their benefits, there are five general steps to successful inventory forecasting:
Inventory purchasing and the return to full capacity will likely require an upfront cash injection. Given recent disruptions and the current climate, you’re not alone if your business doesn’t have the capital readily available. Thankfully, there are finance options available that can help you make sure that your business is fully equipped for success this holiday season.
Contact us to find out more about how BOQ Business can support your small business.
One of the biggest challenges that small business owners face is hiring, managing and retaining staff. On top of finding the right people to help run your business, you also need to have strategies in place to build and maintain employee morale, retain staff and ensure productivity remains high.
This blog post is for general information purposes only and is not intended as financial, taxation or professional advice. It has not been prepared with reference to the financial circumstances of any particular person or business and should not be relied on as such. You should seek your own independent financial, legal and taxation advice before making any decision about any action in relation to the material in this article.
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