It’s no secret that the holiday season can be a stressful one for business owners. Although it is a time to reflect, be grateful and celebrate, some businesses see a decline in sales, which, coupled with typical employee raises and bonuses during this time, can make it a financially burdensome time for owners. However, there are ways your business can cut costs this holiday season with these four proven strategies:
Adjust Employee Schedules
While some companies experience their busiest seasons during this time, others aren’t so lucky. Colder weather prevents many people from shopping and dining out, while holidays encourage others to spend time with family indoors.
It’s not uncommon to enter a store, restaurant or hair salon during November, December and January to find them empty. There is no reason to commit to paying salaries when there is no business, which is why you should plan to adjust your staff’s schedules during this time.
Analyze your past few years and determine your slowest times and how many employees you actually need working at a time. Just be sure to provide your staff with enough warning so that they are not surprised about their reduced hours.
Cut Down or Eliminate Your Holiday Party
Holiday parties are annual traditions for many businesses, but they can also get expensive. Although it is important to show your employees how much you appreciate them during this time, consider ways to do more cost effectively.
Instead of taking out your staff members to a restaurant or renting out a banquet hall, move the festivities to your office or business space. A meeting room or lunch area can be enough space to share a meal.
Instead of catering food, ask your employees to bring in their favorite dish, arranging a potluck. If you don’t feel comfortable doing that, you can still cut costs by hosting a breakfast instead of a dinner. Bringing in bagels and cream cheese is a lot more affordable than catering dinner!
Introduce Secret Santa
Business owners always want to make their employees feel special by showering them with gifts around the holiday time. Even if you try to be frugal, these expenses add up to be hundreds, if not thousands, of dollars.
Try something different this year to cut costs by introducing Secret Santa. Write down all of your employees’ names on pieces of paper and put them in a bucket or hat. Ask each staffer to pull out a name and purchase a present for that person. Set limits on the presents to be no more than $20 or $40 each. This way, every individual in your company goes home with a gift, but your company has saved a significant amount of money.
Focus on Free Marketing
One of the most expensive strategies during the holidays tends to be marketing. Businesses that offer specials during this time want to spread the word to their customers, and the way to do that is through marketing.
To be cost sensitive during this time, consider ways to market without breaking the bank. For example, you can email holiday cards and announcements to your customers absolutely free instead of spending funds on printing and mailing them!
If you have tried all of these strategies, but are still finding it difficult to sustain your business during the holiday time, turn to IOU Financial. We make it a priority to support small and medium-sized companies with easy loans up to $300,000. You can get funded in as little as 24-48 hours.