Poor Christmas planning means a dry January for one in five business owners
One in five owners will have to dip into personal savings to make it through January this year, as new research revealed the dangers of not being prepared for the festive season.
The study, conducted by small business finance provider LDF, revealed a January drought? for many small businesses, as a further 15 per cent of small company owners admitted that the Christmas period negatively harms their profits.
The single biggest cost of the Christmas period for small business owners, the study found, was ensuring resources could meet the increase in demand bringing in temporary workers as well as giving more hours to existing employees.
Another factor found to make January a poor sales month was the failure to manage stock levels.
Almost a quarter of survey respondents claimed that by overestimating consumer and supplier demand, they will be left with a surplus of stock going into 2017 and faced having to undersell? their product in January.
Commenting on the findings, LDF managing director Peter Alderson said that company owners needed to anticipate the impact of Christmas well in advance.
this is a critical time of year for small businesses, especially those who operate seasonally as this can make or break how they approach the New Year.
Praseeda Nair is the editorial director of Business Advice, and its sister publication for growing businesses, Real Business. She's an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.
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