Preparing a Business Budget for the Holidays

It’s imperative for you to make sure that your business budget is ready for the golden opportunities and stiff challenges that come during the holiday season. This is the primary reason why many experienced business owners begin planning in June or July. They know this will help them be ready for their customers, and they will also be in perfect position to have an edge over their competitors.

How much sales volume would you like your business to have during this holiday season? How much capital should you spend to reach your sales goals? We will now look at five simple tips that can help you prepare a good business budget for the holidays.

Store Inventory
It’s extremely important for you to keep a close eye on your inventory. It doesn’t take a rocket scientist to know that shoppers hit stores during Black Friday weekend and the week leading up to Christmas. You must have adequate inventory on your shelves to meet the demand. If you don’t, you will lose money. It’s also important to point out that you cannot afford to have extra inventory sitting on your shelves after the holiday season.

Reviewing last year’s orders will help you figure out how much inventory you will need during the holidays. Keeping a close watch on your inventory will help your customers have a positive experience with your business.

The summer is the best time to begin searching for a business loan alternative if you think your company will need more capital for new inventory. It’s not unusual for well-known brands to get a merchant cash advance for their operations.

Marketing
There will be many deals on marketing and advertising during the holidays. The key is to find the best marketing channels that will be ideal for your advertising budget.

There’s an old saying in marketing, “You should aim at getting more bang for your buck.” Your advertising dollars should increase your sales during this time of the year.

Here are some solid marketing channels for your business:

– Updates to your website
– Email marketing
– Signage
– Broadcast advertising
– Customer loyalty programs
– Print advertising
– Special promotions and events
– Social media

How much money should you devote to each marketing channel? Reviewing your marketing ROI for the past year will help you see how much capital you should invest into each advertising channel.

Decorations and Gifts
Spending money on holiday decorations for your business will enhance the holiday spirit. Giving gifts to your employees, contractors, and vendors will show them that you appreciate their service. Don’t fall into the trap of distributing lavish gifts. The gifts should be simple and inexpensive but thoughtful.

Production
If you are in the business of manufacturing goods, your holiday production schedule should show your projection for demand. Studying last year’s statistics will help you create realistic production goals.

Please keep in mind that your production schedule should take the following into consideration: raw materials, supplies, equipment, and assemblies. There’s a slight possibility that you may need to have extra capital for transportation facilities and temporary storage.

Getting ready for the holiday season requires liquidity. You need money to cover the costs for changing the technology at your company, or you may need capital to buy inventory.

If your business is short on cash, you should search for a business loan alternative. Alpine Funding provides cash advances for many types of businesses to satisfy many needs. Whether you need to hire more staff, order more inventory, or increase your marketing budget Alpine is here for you.

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