For most small businesses, the festive season is the only time they make a lot of profit. With the right guidance, this profit can be used to maximise the business.
Elize Giese, head of business investments at FNB says with unstable economic conditions locally and the highly uncertain business environment, Small and Medium Enterprises (SMEs) should fully capitalise on the opportunities presented by the busy festive period by saving and investing profits wisely.
“Business owners that are less busy should avoid shutting down and going on holiday early, but rather use the quiet period to review their business plans and adequately prepare for the months ahead.” She advises business owner to look for way to save the profit or invest it for rainy days.
“Profits earned during the festive season can go a long way to help SMEs prepare for the tough times and even quieter periods in the beginning of the year. One of the challenges we are seeing in the SME sector is that many business owners are failing to maximise profits earned during the festive season by overlooking the vast savings options available to them,” she says.
Giese says many small business owners often work 24 hours a day, seven days a week, and hardly find the time to review their business operations. For these SMEs, the festive season is the perfect time to track business performance, overall strategy, financial position, efficiencies and competitiveness, in order to identify problems and further take advantage of business opportunities.
“Before SMEs can take advantage and enjoy profits from festive season sales, it is important to start planning now to make sure they are adequately prepared to meet the needs of consumers that are ready to spend and spoil their friends and families,” concludes Giese.
