HOW CAN YOUR BUSINESS CAPITALIZE ON FESTIVE SEASON SALES
The festive season is synonymous with increased expenditure; traditionally this was built around Christmas but Black Friday has pushed back this window to November. For businesses, this opportunity unless planned for will be missed and this failure may be catastrophic enough and lead to closure. It is thus imperative that you make plans for these seasonal opportunities by forecasting and planning.
Why is this important?
Some businesses register over 60% of their annual sales during seasonal periods and thus a well-thought plan that will guarantee their success is key. To achieve this, these businesses plan using annual trends and financial forecasting. Based on historical data, they can anticipate their annual expectations, budget for it, and be ready for the opportunity the seasons present.
With data analysis, businesses can determine:
- The budget/cash flow needed
- The products they need to procure
- The timings they need to meet
- The staff they need to hire
- Stock levels and cash flow necessary
- Offers they will provide to execute successfully.
Armed with the above information, businesses are able to plan for the season, craft marketing messages, calculate discounts and be ready to maximize their sales for the season.
How do you plan for seasonal boons?
Start by collecting and analyzing data; this informs your plan, after which you allocate resources to actualize your plan. This is your budgeting process and it helps you understand how much you have and what it will be allocated to. Understanding your available resources allows you to either limit yourself to what you have or seek funds externally; all of which need you to understand your potential margins versus the cost of borrowing.
The budgeting process also forces you to prioritize where to spend your money and understand your expected cash cycle all of which influence things like re-stocking and or bulk purchases. Further, it informs the kind of credit you seek from your suppliers and the offers you will extend to your customers to best exploit the opportunity.
Indeed it is very clear that to be successful in your business you must prioritize data collection, be able to analyze the said data, and ultimately forecast and plan using this information to make informed business decisions. It demands that you know your customer, understand your cash flow, be able to predict trends, take risks and innovate based on records you have and plans you formulated.
On the flip side, entities that lack records tend to clutch on straws, basing their decisions on whims rather than on informed facts in most instances these companies get several parameters wrong and may occasionally end up making losses while the competition is reaping hand over fist.
Should you wish to get advice about your finances or looking for financial solutions, we are your go-to partner to learn and grow; reach out to us we co-create your path to success. Financial planning is an expertise we at Springboard Capital thrive in. As providers of financial services, this is a skill we mastered as a key fundamental of our core business and it is a skill we share with our stakeholders as our success is anchored on their success.
We also offer various loan products such as Business Loan, Emergency Loan, Asset Financing, Salaried Loan, Loan against Logbook, Import Duty Financing or Title Deed Loan, to help grow and manage all operations. Contact us today at 0700 944 444 or WhatsApp us through the button below, or email us at info@springboardcapital.co.ke.
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Article based on Dennis Ogaro Webinar Presentation – Denis is a highly accomplished Finance and Administration Manager at Springboard Capital. With expertise in finance and keen attention to detail, he manages financial operations and administration for the company. Denis oversees budgeting, financial analysis, forecasting, and risk management, providing valuable insights for informed decision-making. He is proficient in financial software, ensuring accurate reporting to stakeholders. Denis’s role is crucial in optimizing financial performance and identifying areas for improvement.
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