For many summer holidays evoke images of long, hazy, sunny days at the beach, relaxing with a good book and spending quality time with the family. However, summer can be a fraught time if you are an owner or manager of one of the UKís 3.7 million small and medium sized businesses, warns Bibby Financial Services.
Many small firms struggle to cope during the summer months as they try to meet surges in seasonal demand as well as deal with the issue of covering staff holidays whilst desperately needing to take a break away from it all themselves.
In fact, a recent poll* found that up to a third of small business entrepreneurs will actually be unable to take any days off this summer and almost a quarter (24 per cent) said that they would try and take a break, but it would be for just one week.
In order to help the countryís small business owners cope with the seasonal demands of summer, maximise sales and survive the holiday period, leading business finance firm Bibby Financial Services has developed a series of top tips on how to survive the summer season and overcome any potential pitfalls.
(1) Planning is paramount ñ plan effectively and try to anticipate demand for your products or services. Seasonal trends are likely to occur on an annual basis and should be factored in to your business plan and sales forecasts.
(2) Keep your eye on the ball ñ monitor your stock levels regularly. While over-stocking will deplete cash flow and may prove difficult to shift, under-stocking will cost you sales and may even result in the loss of valued customers.
(3) Keep your cash flowing - as the temperature heats up, donít let your cash flow dry up. If necessary, explore alternative funding methods such as factoring, in order to ensure that you have a flexible supply of working capital during your peak sales season.
(4) Consider seasonal cover ñ many of your staff will want to take time off over the summer months, particularly during the school holidays. Consider taking on temporary staff to fill the gap and ensure that your customer service levels are uninterrupted.
(5) Always under promise and over deliver ñ never take on board contracts that you canít fulfil, particularly in the summer months when you may have a skeleton staff, this will damage your reputation and endanger your business.
(6) Practice good housekeeping ñ keep clear, concise documentation, send out invoices and statements quickly and maintain clear records. This will ensure that when you are extremely busy, the day-to-day business runs as smoothly as possible and if you go away, staff can pick up where you left off.
(7) Love your loyal customers ñ gaining new customers is always exciting, but donít put novelty before long-standing relationships. At times of high seasonal demand, ensure that you keep your loyal customers happy.
(8) Have a holiday plan - if you are looking to go on holiday, be realistic about when you can go, if your business is affected by marked seasonal variations, take your break when you anticipate a lull in demand.
(9) Delegate responsibility ñ for the duration of your holiday, empower a trusted member of staff to make decisions in your absence, check your email and voicemail and open the post. This will ensure that you can ease yourself back into work on your return.
(10) Fully recharge your batteries ñ thereís nothing like a mobile phone or a laptop to spoil a good holiday and create family tensions. Try to fully commit to your break, leave the office at home and give yourself a chance to relax and recharge those depleted batteries.
David Robertson, Chief Executive of Bibby Financial Services says, ìLarge surges in seasonal demand can throw firms off track. Whilst an influx of new orders may appear attractive, this needs to be balanced with the demands of the business, including key considerations such as cash flow, staffing levels as well as managing holiday cover.
ìWith proper planning, owners and managers can not only survive the summer season but can take the time to have a proper holiday themselves away from the daily grind. Providing any leave is planned and properly managed, there is no reason why busy entrepreneurs canít take a well-deserved break without minimal disruption to their business.î
*Source: http://www.startups.co.uk, 20.06.03
Summer Survival Kit for small businesses
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