Top Tips
Don't Sweat It Beat The Summer Business Blues
While the summer months may be the time for many to kick back and relax, they can be among the most stressful if you are an owner or manager of one of the UK's 3.7 million small and medium sized businesses, warns Bibby Financial Services.
Many owners and managers struggle to cope during the summer months as they try to meet the surges in seasonal demand, as well as deal with the issue of covering staff holidays, while desperately wanting a break themselves.
Due to the everyday pressures of running their businesses, research* suggests that more than one in ten entrepreneurs don't take a holiday at all, while 53 per cent take no more than two weeks a year - two weeks below the statutory four weeks entitlement under European legislation.
In order to help the country's small business owners survive the holiday period, Bibby Financial Services has developed the following top tips:
- Plan, plan and plan some more - plan effectively and try to anticipate summer demand for your products or services. Seasonal trends are likely to occur on an annual basis and should be factored in to your business plan and sales forecasts.
- Keep your eye on the ball - monitor your stock levels regularly. While over-stocking will deplete cash flow and may prove difficult to shift, under-stocking could cost you sales and may even result in the loss of valued customers.
- Keep the cash flowing - as the temperature heats up, don't let your cash flow dry up. If necessary, explore alternative funding methods such as invoice finance, freeing up to 85 per cent of the cash tied up in unpaid invoices, helping you ensure that you have a flexible supply of working capital during your peak sales season.
- Practice good housekeeping - keep clear, concise documentation, send out invoices and statements quickly and maintain clear records. This will ensure that when you are extremely busy, the day-to-day business runs as smoothly as possible and, if you go away, staff can pick up where you left off.
- Love loyal customers - gaining new customers is always exciting, but don't put novelty before long-standing relationships. At times of high seasonal demand, ensure that you keep your loyal customers happy
- Always under promise and over deliver - never take on board contracts that you can't fulfil, particularly in the summer months when you may have a skeleton staff. This will damage your reputation and endanger your business.
- Consider seasonal cover - many of your staff will want to take time off over the summer months, particularly during the school holidays. Consider taking on temporary staff to fill the gap and ensure that your customer service levels are uninterrupted.
- Plan your absence - if you want a holiday, be realistic about when you can go. If your business is affected by marked seasonal variations, take your break when you anticipate a lull in demand.
- Delegate responsibility - for the duration of your holiday, empower a trusted member of staff to make decisions in your absence, check email and voicemail and open the post. This will ensure you can ease yourself back into work gently on your return and won't spend the first few days sorting a mountain of mail and messages.
- Put your business life on hold - there's nothing like a mobile phone or a laptop to spoil a good holiday and create family tensions. Try to fully commit to your break, leave work worries at home and give yourself a chance to relax and recharge those depleted batteries.
David Robertson, Chief Executive of Bibby Financial Services, said: "With proper planning, owners and managers can not only survive the summer season, but can take time to have a proper break themselves. Providing leave is planned and properly managed, there is no reason why busy entrepreneurs can't take a well-earned holiday with minimal disruption to their business."
