Preparing your small biz for the holiday closure period
The Christmas and New Year holiday season is a time of celebration 🎄
Catching up with friends, spending time with family, going on holidays and pretty much just using the time to switch off completely from work (which is very much needed).
Unfortunately though, this sometimes means we get a little excited and overlook the planning side of things for our business.
Here are a few tips to help you prepare your small business if you are planning on closing for a break over the Christmas/New Year period:
1. Have a plan for your employees
If you are closing down for a period of time you need to give your employees notice of this so that they can plan. Review their leave balances in conjunction with their award and employment agreement to see what your options are and if they have enough leave accrued, although most team members will welcome a short break. More info can be found here.
Don't forget to schedule the payrolls while you are on leave, don't forget that part time and full time employees need to be paid for public holidays during the closure period.
It is also advised to have a leave policy in place to ensure that employees do not accrue too much leave that will put unnecessary pressure on cash flow if they leave and need to be paid out or want to take an extended holiday.
2. Make a list of tasks
If you decide to stay open during the holiday period and there is not much work to be done, make sure you make a list of admin tasks that the team can do during this period. Don't pay them to sit around and do nothing! Perhaps the filing system needs reorganising or the CRM needs updating?
3. Have a plan for your customers
As the end of year approaches many other businesses go into holiday mode and it is likely that invoices won't be paid until the near year which can create a strain on cash flow.
Make sure to invoice customers promptly as you complete the work and set expectations around payment terms to ensure you are getting paid.
4. Know your numbers
It is very important to know your break even point aka how much your outgoings are on a weekly basis so that you know how much money you need in the bank account before you close for Christmas/New Year. This will help you plan and know how long you can actually afford to close for.
Don't forget that superannuation for employees is due 28th of Jan so be sure to include an amount in your budget.
If you have any questions or need assistance with planning please call 02 9030 0269 or email hello@twosides.com.au.
Natalie Lennon
Founder & Director
02 9030 0269
@twosidesHQ Facebook & Instagram