SMEs around Austrlia should grow next year. However, there is an expected slowdown to occur during the Christmas holiday. Companies need to plan for this. Christmas is a dangerous time for SMEs as business usually dries up. Many companies rely on bank financing to see the holidays through. If thye don’t, these businesses may collapse, uually around late spring when the affects hit them. In order to product yourself, focus on completing current orders done as soon as possible and make plans with financing from your bank.
- While the holidays can bring booming sales, the post-holiday period can often see customers disappear as they’ve spent themselves out for the moment.
- Most businesses will begin to experience a squeeze on cash flow from slowing sales around March.
- Focus on holding expenses down, and billing customers promptly to encourage payment, to better weather the sales slump.
“Our recent Canary in the Coal Mine Survey found almost half of respondents are planning for growth next year, but without a cash buffer in place for the slowdown, businesses can quickly run into trouble, or worse, collapse.”