The holidays are right around the corner, and for retailers nationwide, this likely means the busiest time of year is steadily approaching. It can be easy to get overwhelmed by all of the planning and ordering that needs to occur before holiday shopping season officially begins, which is why we’ve created this guide. In addition to considering the following strategies, secure your business with an Indianapolis Retail Insurance policy.
Monitor the flow of cash.
As demand increases, so does your capacity. Handling all of the cash and purchases is critical this time of year to optimize profits. Here are a few major things to consider that will affect your cash flow:
- Purchase orders
- Increased labor costs
Identify pain points.
Every business has its struggles, and identifying them before the holiday season starts can give you a leg up. In times where you need to order a lot of merchandise and require cash in the bank, your payment contracts might get in the way. Identify potential late payments from customers and money you owe to suppliers. Then, evaluate the lack of cash from fronting money on staff’s wages when planning your holiday ordering strategy. All of these, including bonuses, weather mishaps, and extras you spend on your store during the holidays, can minimize your cash flow.
Christmas is both a lucrative period and an expensive one for retailers. With cash flow management concerns, additional purchase orders, employee wages, and more, holidays can be taxing on this industry.
In fact, according to Access Commercial Finance, it could take more than just January to get your finances back in order again. Historically, retailers can find it even more difficult in December and January despite getting as much as 40% of their annual profits from this period. Pressures include;
- Strong competition
- Widespread discounting
- Rental payments falling due.
Planning ahead and gearing up your finances can make or break your business during the holidays. With these financial considerations, and the right insurance, your business can continue to thrive.
About McClain Matthews Insurance
At McClain Matthews, we specialize in providing comprehensive insurance solutions for Indianapolis residents, business owners and beyond. For the last 69 years, we have established relationships within our community and pride ourselves on tailoring coverages as needed by our clients. For more information on how we can serve you, contact our friendly experts today at (317) 298-7500.