2023-12 Paul Egelser on festive season activities for entrepreneurs

Unless you are in wholesale, retail or household and recreational services, the chances are that your staff will want to take leave and business will slow down. Successful entrepreneurs use their quiet periods to prepare for when things get busy again. By working in advance, they know they will have the freedom to manage the business when the pressure is on.

Tip 1: Business planning and cash flow

Prepare your business plan and cash flow projection. Your business plan is your strategy for the coming year. It is your personal guide to what you will do, how you will do it and when. It must also speak about your plans to grow and the challenges you might expect. You will also share it with your senior staff to inform them of what to expect and the roles they will play. It must be realistic and should not overpromise. Try to stick with it as closely as possible. If you find yourself going off course, take corrective measures as soon as possible to get back on track.

Work out your earnings, debt repayments, taxes and other costs in your cash flow projections. This should give you an idea of the financial resources that you will need. Cross-reference it with your business plan. If your cash flow falls short of your cash flow projection, check your business plan as well, identify the reasons for the short fall and take corrective action.

Tip 2: Review assets and stock

Your assets and stock are the tools with which you operate your business. If they are not in good condition, they will slow down your business. Ensure that they are in good condition, make certain that any necessary repairs and maintenance are carried out. Check your insurance schedules to ensure that you are not overpaying or underpaying. Make sure that your stock is at optimum levels to begin the year without supplier disruptions.

Tip 3: Forge bonds with staff and develop them

Staff who work during the holidays are possibly your most loyal and valuable employees. Strengthen respect and understanding with them. Ask them for their insights on how the business went during the year and if the business could have done. Listen respectfully without arguing. Remember that you can choose to use their advice or not. You can also use the time to show them new or more efficient ways of doing things. Your relationship with them and their job satisfaction is one of your most valuable assets.

Tip 4: Separate your personal and business finances

You may be tempted to spend your profits on yourself and your family. Don’t make drawings. Rather stick within your personal budget and save your profits for opportunities and / or unexpected economic shocks during the year. You might also consider giving yourself and staff members raises.

Tip 5: Take time off

When you have an opportunity, take time for yourself, your family and friends. Don’t dwell on business or go to the office, no matter how big the temptation. The time that you take without the business will clear your head and make room for new perspectives and insights when you return to work.

…ends