Four Proven Marketing Strategies for the Holidays

The holiday season is the perfect time for businesses to attract new clientele and connect with existing customers. With buyers scouring for Christmas presents, many stores experience a significant surge in sales. Service-oriented companies, such as gyms and beauty salons, report an influx of new customers around January, when people make New Year’s resolutions to get in shape or become better versions of themselves. All in all, the holidays are a great time to market your services to potential customers by utilizing the following four proven strategies:

Charitable Giving

Thanksgiving and Christmas are popular times for donations to local shelters, philanthropic organizations and community events. Companies can combine doing a good deed with a marketing advantage by making a donation to a charity or sponsoring a local soup kitchen event.

Allowing the community to associate your company’s name with giving creates a positive view of your brand, encouraging them to shop with you during the following year.

Holiday Cards

Everyone loves getting a holiday card from a friend or family member, but there is no rule that holiday cards can’t be sent from businesses. Realtors are already aware of this strategy, sending holiday cards to potential and past clients to increase loyalty and foster customer relationships.

Sending holiday cards to your existing roster of clients and surrounding residents creates an emotional connection between you and your customers, which has been proven to increase brand loyalty and increase sales.

Keep in mind that your customers may celebrate different religious holidays, so sending a generic holiday card rather than one specific for Christmas may be more advantageous to avoid offending anyone.

Utilize Holiday-Themed SEO

Search engine optimization (SEO) should always be a priority in your marketing campaign. The holidays are a great time to re-evaluate your target keywords and add holiday-themed alternatives to help potential clients find you.

Keywords such as “holiday gifts,” “unique Christmas presents,” “ugly sweaters” and “corporate holiday gifts” trend around the end of the year. Utilize these keywords in your pay-per-click (PPC) Google campaigns and in the content of your website and blogs to capitalize on seasonal searches.

Holiday Events

People love to attend holiday events where they feel jolly and get in the spirit of the holiday season. This is the perfect time for businesses to open their doors, encouraging new clients to learn more about them and regular clients to feel appreciated.

Consider hosting an annual holiday party for your top customers to wine and dine them and help them feel valued by your company. You can also host a holiday open house at a salon, store or restaurant attracting families with a visit and photos with Santa and his elves, free cookie decorating events and carolling.

Whatever event you plan for your business, focus on using that time to help visitors connect with your company, learn more about your products and services and create an emotional connection with your brand.

The holiday season can be a strenuous time for business owners as it calls for a lot of expenses. IOU Financial is committed to helping you during this and any other time with an affordable business loan. Get instant pre-approval and funding in as little as 24-48 hours!

Should My Business Participate in Cyber Monday?

Cyber Monday (CM), the Monday after Thanksgiving that promotes online shopping, has become almost as important as Thanksgiving and Black Friday in terms of holiday sales. In 2016, CM sales increased by 12.1 percent year over year, reaching a volume of $3.45 billion. That’s a higher sales volume than experienced on 2016 Black Friday. There is nothing to prohibit online sellers from participating throughout the Thanksgiving holiday, but CM is the day set aside for the biggest online promotions. The question of whether your small business should aggressively compete for CM business turns on several considerations:

What is your online presence?

If you don’t have a website, or if the website has problems, it’s getting late to make it work right. You certainly don’t want to be out there on CM with an untested or buggy site – it’s much better to perfect the website before using it. You’ll be better off by opening a page on Etsy or Amazon this year and then promote your website next yet.

What do you sell?

The extended Thanksgiving selling season favors products over services, with perhaps the exception of travel. Certain merchandise has historically seen strong sales on CM, such as laptops, cellphones, data storage, clothing, and beauty products. But that’s not to say you shouldn’t participate on CM with different types of merchandise – it’s ultimately your call.

Can you afford CM?

The purpose of CM is to achieve a sales spike. That means you might need extra merchandise and extra labor. Depending on your size, this might not be a major consideration. However, if you are a bigger business, you might have to prepare for CM by purchasing extra inventory and hiring additional part-time workers. If you anticipate significant costs in this regard, consider taking a loan from IOU Financial – the terms are fair, the money is available quickly, and you repay a small amount in daily or weekly increments instead of facing a largely monthly payment.

Can you absorb promotion costs?

Sure, on CM you can sell your most popular items for 90 percent off and make a big splash. Can you afford such an aggressive promotion? Is it overkill, or is it a reasonable response to your competitors? Do you sell a product mix that encourages repeat shopping? If so, getting folks to place their first online order with you might be worth an upfront loss. On the other hand, if you give away the store, you might not survive until next year’s CM. It comes down to sales projections, budgets, and cash. You can prepare for just about any promotion if you start early enough, but spontaneous last-minute promotions might leave you in a cash crunch.

Engage social media.

Activate your pages on Facebook, Snapchat, Twitter, LinkedIn and so forth to promote your CM sales. Ads on these pages are cheap and can be very effective. If you maintain a customer email list, prepare to ramp up a few days before Thanksgiving and again on CM. Services like MailChimp can help you set up and execute an email strategy – it’s not expensive but requires some preparation, so don’t wait until the last minute.

Try to establish closer relationships with new customers:

Hopefully, your CM promotions will draw in first-time customers. Besides adding them to your mailing list, do something extra to help cement your relationship with them. You might send them special offers or coupons as a thank you for shopping with you.

If you fit the CM profile, go for it! After all, you do want to increase sales, don’t you? Need to get a handle on your budget before the big day? Check out our Business Budget Smart Sheet. 

How to Gear-up for a Successful Small Business Saturday

American Express started Small Business Saturday in 2010 to encourage American consumers to buy from mom-and-pop stores rather than the huge box-stores and the ubiquitous online sites. It falls on the Saturday following Thanksgiving (Nov. 25, 2017), and you should be preparing for it right now. Here are some great tips to maximize your sales on Small Business Saturday (SBS):

Beef up your inventory:

SBS is a great opportunity to attract new customers, and the last thing you want is to experience stockouts in the face of high demand. If your cash flow is tight, consider taking a loan to finance extra inventory purchases. You need to have the merchandise ready to go by Thanksgiving, because savvy shoppers often beat the SBS rush by a day or two. Thankfully, IOU Financial moves swiftly, and we can get money into your company bank account in as little as 48 hours. But don’t procrastinate – others will be stocking up too!

Check out competing promotions:

Don’t let your competitors out-hustle you on SBS. Be alert to print and broadcast ads, as well as word-of-mouth, store signs and mailers. Even though promotions will cut your net margins, the new customers you recruit are a long-term asset and well worth the short-term cost. Don’t forget to use social media to get the word out about the great deals you’ve cooked up for SBS.

Review your website:

You do have a website, don’t you? The big-box boys sure do, but yours can be more creative and locally relevant. List all your phone numbers and prominently display your store hours. Highlight SBS and how shoppers will benefit from the great deals you’ll be offering.

Feed the charitable impulse:

A great promotion is to contribute a percentage of all SBS sales to a popular local charity. The percentage is up to you, but even 1 percent can buy you a lot of good publicity. And that’s what you want – plenty of publicity in your local newspapers and broadcast media. Follow up with a photo showing the charity chairman receiving an oversized check from you. An enterprising local TV reporter might be interested in the human-interest angle, so shop the story around.

Bread and circuses:

Make SBS an event that will generate a rush of traffic. Offer free snacks, drinks, a raffle, maybe a clown to entertain shoppers’ children – you get the idea. Combine special events with special discounts and packages, and you may see traffic like never before.

Strategic partnerships:

Do you run a bakery next door to a coffee roaster? Maybe the two of you could get together and cross-market each other with joint SBS discounts. The possibilities are limited only by your imagination.

Involve your workers:

Get them excited by involving them as you brainstorm your SBS plans. Their enthusiasm will help make SBS a success, and you’ll also score points by showing your employees that you care about their ideas.

Say thank you:

Personalize your gratitude to SBS shoppers by mailing, or emailing, thank-you notes. Collect address information via door prizes, discount cards and loyalty clubs. Elicit feedback about how to make next year’s SBS even better. Enclose a discount coupon to encourage a repeat visit.

By growing your customer base, you set the foundation for growing your business. SBS might just be the springboard to a larger store, more employees, and higher sales. The opportunity is there – it’s up to you to grab it!

How to Get Your Finances Ready for Your Slow Season

Many small businesses experience one or more slow seasons each year. For a B2B business, the year-end holidays might be a slack time, while tourist-related businesses might have little to do during the coldest (or hottest) months. Although challenging, a slow season is at least predictable, which means you can make preparations to see your business through the lean months. Here are some suggestions:

Assess your cash needs:

Most businesses have a mixture of fixed and variable costs. You’ll need enough cash to cover your fixed costs and that portion of your variable costs that you can’t avoid. Your monthly and quarterly budgets should give you a good indication of an impending cash crunch and thus how much money you must have on hand.

Husband your cash:

In the months just prior to the slow season, accumulate excess cash, if any, in a bank account. If you have a lot of money tied up in unpaid invoices, consider factoring them for immediate cash. Cut your expenses and purchases during the slow season. If you hire contractors, it’s easy enough to reduce staffing. That’s a little harder to do with employees, but many places do furlough workers or give them unpaid extra vacation time. In the worst case, you can let go of some employees, but that may cause more problems in the long term. A better idea is to hire only the number of employees you need all year round, and then hire seasonal workers during the busy months.

Take a vacation:

If you run a mom and pop store, schedule your vacations for the slow season(s) and shut down the store during those times. For example, if you own a frozen yogurt store in Washington DC, the three coldest winter months might be an excellent time to take an extended holiday. This will cut your variable costs to the bone.

Make credit arrangements:

A short-term loan or line of credit can be just the ticket for smoothing out a choppy selling year. IOU Financial can lend you up to $150,000 on short notice and favorable terms, without all the hassles associated with a bank loan. Since the loan is short term – the length of the slow season – the total interest paid will be relatively modest.

Negotiate better terms with suppliers:

If your slow season is well defined, you should be able to work with your suppliers to loosen their terms during the slack period. It’s reasonable to ask for due dates to be extended from 10 to 90 days, especially if your payment record with the vendor is good. A good supplier will understand your business cycles and offer you flexible terms when you need them. It’s important to reach these agreements well in advance of the start of the slow season, so that you can adjust your budget accordingly.

Increase your social presence:

Use your extra time during the slow season to increase your social media footprint. It’s an excellent time to publish articles and send out newsletters or emails containing useful information. Update your entries in LinkedIn, Facebook and other outlets. You can even advertise over the web by buying ads from Google, LinkedIn and other social sites.

Plan sales events:

If you can’t close up shop during the slow season, why not schedule major markdown events for the period? Lower prices, suitably advertised, should draw in customers. You can also plan fun events, like raffles and free donut days, as well as instituting a buyer loyalty program.

IOU Financial is your source for affordable small business loans of up to $150,000, funded in as little as 24 hours. There are no upfront costs, and daily fixed repayments avoids large monthly payments. Let us see you get through your slow period and help you grow your business year-round.

Tax Season is Here: How to Properly Get Your Finances in Order Before You File

The new year is also the start of tax season, so it’s time for your small business to get organized, file business expenses correctly, and ensure you are getting the correct refund. The details of how to accomplish this depend, in part, on how your business is organized: sole proprietorship, partnership, LLC or corporation. Yet the ways you go about calculating your taxable business income are pretty much the same however you’re organized. Here are the basic steps you’ll need to file your taxes properly.

Collect your business records: Hopefully, you have a computer and/or file drawer that is carefully organized to maintain all your raw paperwork, such as invoices, receipts, tax documents, bank statements, business diaries, etc. But we know that some folks are in the habit of piling all their papers into a heap on a desk. Well, now is the time to attack those records, get them sorted and entered onto a spreadsheet or accounting package. If you use software like Quicken or QuickBooks, you can go through your transactions, flag tax-related items and associate them with the appropriate IRS tax forms and lines. Once complete, you can then import the data into tax preparation software and it will automatically prefill many of your forms and schedules. 

Resurrect missing information: If you are somewhat disorganized, you may not have done a 100 percent perfect job of preserving your receipts. For example, you know you went on a business trip last year, but can’t seem to locate any of the receipts for travel, lodging, meals, taxis and so forth. Unless you paid for everything in cash, you can resurrect the missing information by combing through your credit card and bank statements. In fact, it’s a good idea to scour the entire 12 months of these statements to make sure you haven’t missed any deductible expenses. If you operate on a cash basis, remember that tax-related events occur when money is collected or disbursed. Accrual-based businesses must instead use the dates on which income is earned and expenses are incurred.

Find the correct forms: The IRS is pretty picky on which forms you use to file your taxes – they want you to use the right If you are a sole proprietor or run a one-person LLC, this means you’ll be getting intimate with Schedule C of Form 1040. A corporation must instead file Form 1120 separately from your personal return. Partnerships have separate forms as well. Your tax software can quickly ascertain which forms it will use to collect and report your information.

Make 401(k) payment: Your tax software will keep a running total of your refund or taxes due as you fill in the required data. If it turns out you owe the IRS money and you file on Schedule C, remember that you can fund your personal 401(k) up until the tax filing deadline and deduct the contribution from last year’s income. For 2016, that contribution can be as much as $59,000, depending on your age and income.

File on time: If you need an extension, remember that only buys you time for filing, not for paying. You still must pay what you think you owe by the April 15 deadline. Note that if you file Form 1120S as a Subchapter S corporation, the deadline is March 15. If your fiscal year doesn’t coincide with the calendar year, adjust your dates accordingly.

Should you find yourself short of cash at tax filing time, it’s good to know that IOU Financial can lend you up to $150,000 in as little as 24 hours.

How Redefining Your Core Values Can Benefit Your Business

As the new year momentum continues, it can be beneficial to review the core values of your business to see what you can amend and improve upon. Redefining your business core values to make them significant and actually mean something to your staff, partners, and customers can play a monumental role in the way your company is seen and how others relate to your brand.

A source for Harvard Business Review, who has helped companies refine their corporate values for over one decade, states that bland or meaningless values can damage the credibility of the company and alienate employees. To prevent this, revisit your current core values, find room for improvement, and take the following steps to redefine them.

Review Your Current Core Values

To start, re-familiarize yourself with the current corporate values you have established. Are they still relevant, achievable, and actually being implemented? For example, if one of the values is transparency, do your firm’s daily operations reflect that goal? Does information freely flow from top to bottom and in reverse? Are you open and honest with your investors, business partners, and clients about any issues, roadblocks or failures?

Remove any core values that are no longer important to your brand, don’t say anything about your corporate identity, or are simply impossible to achieve.

Survey Your Team

An organization is made up of the team members employed there; therefore, it can be beneficial to survey your employees to find out what their personal values are. If you able to align the personal beliefs and values of your staff with your business values, you can create a better corporate culture and overall working experience for your team.

Send out an email or online survey and ask employees to write down three to five personal values that matter to them. Review these answers and narrow down the top five to 10 choices based on popularity, significance, and relevance to your brand.

For example, if the majority of your staff value sustainability and the green movement, you may consider adding an eco-friendly component to your company’s philanthropic efforts. This can increase employee loyalty by supporting a cause that is important to them, and also start to promote your brand image with a new and important initiative.

Implement the Newly Established Core Values

Once you remove outdated and irrelevant values, and have worked with your staff to come up with meaningful new principles, you must create a plan to implement them. Core values must be ingrained in every decision and practice of the organization because they are the foundation of the brand’s identity.

If you added honest communication as a core value, for example, consider investing in training that would improve the communication skills of your managers and other staff members. Teaching them to better read nonverbal cues, actively listen, and understand difference in multicultural communication can lead to a more productive work environment.

Redefining your core corporate values can unite you with your clientele, partners, and employees by exposing the main principles that define your company and creating common goals for all staff to follow. Revisit your business’ core values while you’re still riding the momentum of New Year’s Resolutions and betterment initiatives!

What Your Small Business can Learn from Big Business in the New Year

The New Year offers the opportunity to analyze your current business practices and consider ways to improve the status quo. One strategy small business owners can utilize is looking at the latest big business trends, and evaluating which can help their companies succeed in 2017. To save you time in your search, we have found and included the most popular big business trends in this article.

Subject Matter Experts Replace Salespeople

While the goal of every business is to sell, business-to-business (B2B) companies can benefit from hiring subject matter experts (SMEs) to lead their salesforce. While a typical salesperson can be entry-level, providing price options, delivery times, and general product information, a subject matter expert is much more than that.

This is an experienced professional who is not only extremely knowledgeable in the product or service being sold, but the company’s goals, the competition and the overall industry. These professionals can provide a great value to consumers as they can make recommendations based on individual business needs and explain clearly the competitive advantage your offerings have over your competitors.

Videos Become Content Musts

It’s no longer enough to write product descriptions or compile written instructions, as the public is demanding video content. In fact, Cisco predicts that videos will make up 69 percent of all consumer internet traffic in 2017.

Hubspot confirms this prediction; their Consumer Behavior Survey found that 55 percent of users report watching an entire video, versus just 29 percent who would read a blog or 33 percent who would finish an interactive article.

What does this mean for small business owners? Invest into creating videos that highlight your products, services and overall company. This effort will pay off with higher sales; Forbes found that 65 percent of individuals who saw an online video then visited the company that posted it.

Social Media Takes Over Direct Email Campaigns

Forbes reports that collaboration tools, like Google Docs, are replacing internal communication between employees. Instead of sending and receiving dozens of emails when working on a project, employees make changes and post comments online, which means that B2B companies will have a harder time getting potential customers to read their email campaigns, as they will not check their inboxes as often.

How do you reach new and existing clients if not through email? Through social media platforms, such as Facebook, Twitter and Pinterest. Updating relevant photos, posts and news about your company will resonate better with your target audience rather than just blasting emails out at them.

If you choose to implement a big business idea for your small enterprise, such as adding a subject matter expert to your team, or creating a video, you may find it difficult to fund these endeavors. IOU Financial makes it our mission to help small business owners succeed and grow their businesses with small business loans. Click here to find out how you can secure a loan in under 24 hours!

DIY or Hire an Accountant?

Many owners of small business do their own accounting, usually with the help of a software package such as QuickBooks. This can make sense if you run a one- or few-person operation, are familiar with basic accounting, and have the time and inclination to take on the work yourself. For you DIYers out there, we recommend our IOU Financial Business Budget Smart Sheet to establish and track your budget.

For some, the question of hiring an accountant is confusing. Here are nine signs that indicate you should go ahead and hire one: 

  1. Knowledge: If you aren’t familiar with accounting terms, financial statements or report creation, you might need an accountant, at least in the beginning, to teach you what you need to know. If you don’t think you have the time to study the subject, you can keep the accountant on as long as needed.
  2. Taxes: Tax law is complicated, and one of the worst mistakes a business can make is to overpay its taxes. But even worse is to underpay and get caught, because then you’ll be hit by penalties and interest. Use an accountant if you don’t understand which deductions and tax credits to take, and/or if you don’t want to file your tax return on your own.
  3. Time: Let’s face it, bookkeeping can eat up your time and divert you from more important tasks. You need to operate the business, make staff decisions, market your offerings and troubleshoot problems. It shouldn’t be surprising that bookkeeping would be low on your priority list. You can hire a bookkeeper who knows how to do other accounting tasks – they usually charge less than full-blown accountants.
  4. Growth: Congratulations, your business is experiencing rapid growth. However, that also means you have more customers to attend to, more staff to hire, more vendors to negotiate with, and so forth. These activities require more paper pushing, number crunching and meeting time. With these management challenges, why not let an accountant lift some work off your shoulders?
  5. Profit margin: It’s nice when revenues grow, but less nice if profits don’t follow. The reason is invariably that your costs are too high. You could use an accountant with a sharp pencil to evaluate your overhead costs and suggest ways to save money. The savings could easily pay the accountant’s salary and hopefully a lot more.
  6. Investors: Have you grown to the point that you have investors? Well, they’re going to want to see professional reports that lay out the current financial condition of the business. Professional financial reports are also useful in recruiting new investors. An accountant can produce the reports you need and make them look professional – that will help keep investors happy.
  7. Expansion: If you are thinking about expanding into a new state, an accountant will help you meet the regional reporting requirements for payroll tax, income and sales. Expansion to a new state may include opening new locations, creating new distribution logistics and hiring new staff. An accountant can help you track the costs of these moves.
  8. Merger/acquisition: If you are looking to buy or sell your business, you’ll need an accountant to evaluate the entities involved and how to structure the transaction in order to minimize taxes.
  9. Audit: If the IRS has signaled that it wants to audit you, a CPA or other qualified accountant will be able to represent you to the IRS. This can help prevent you from making mistakes as well as lower your stress level. Generally, you don’t want to face the IRS on your own.

5 Ways Your Small Business Can Innovate like Big Business

The New Year can mean new goals, products, developments and much more for small and large businesses alike. For many businesses, growth leads back to innovation and how it is essential. Without staying current and developing creative approaches, many businesses find the New Year a not so happy one. This is where small businesses can learn from bigger businesses about not only sales tactics, but how to come up innovative ideas that could keep them a contender in their industry for years to come. Let’s look at 5 ways your business can innovate like big business.  

Expand your Network of Ideas

Many larger companies are starting to go outside their walls to find the next best thing, newest idea, or latest innovative approach to delivering a similar product or service. Consider expanding outside your walls to see what other smaller companies are working on and how a partnership or collaboration could be more beneficial than competing. Harness new innovations by looking beyond your business.

Create an Atmosphere of Innovation 

It sounds obvious but does your business really foster an environment that promotes innovation? Many big companies are creating innovative “labs” or “programs” often called Accelerator teams tasked with developing new ideas, testing them out, and pitching the top ideas to the company. Start thinking about ways you can start to create small teams to create a new product, develop new ideas for marketing, or even ways to modify an existing service to make them more profitable. Test it out and if it renders good initial outcomes take it to market.

Innovate from Within

On the flip side of looking outside-look within. Ask for new ideas, discuss concepts with current team members, and research ways you can provide solutions to any problems. Many big businesses are learning more from the day-to-day employees and current teams on projects about various ways to stay above the technology fold. Look inward towards the employees you have on payroll to suggest and implement new ideas.

Diversify What you Have

Look at current products and find ways to expand and diversify that service. Offer it on new platforms and add new features as part of existing ones. If you sell sunglasses find ways to repackage, make small modifications, expand the line currently sold, or add new colors to your line. It is no surprise that this works… some companies add Emoji options to their platforms and call it the “next best thing.”

Access to Training/Resources Digitally

Are you accessing the most current training and trends in your field? If you are, how much time and money does that cost? Many companies are utilizing technology platforms to attend training online, developing training programs for employees to view, and even using in-house technology to expand messages to others without having to pay for costly travel expenses and meal reimbursement. Have staff take online courses from the office they work within. Many new companies are embracing the technology they used to develop their product to learn about ways to enhance it. Use technology to your travel and budget advantage.

Big or small, businesses can all learn from one another. Learning ways to maximize the market and stay atop of the newest trends and consumer “wants lists” can help carry businesses longer and further. What ties the success together is not only the implementation of innovation, but continuing to to execute innovative ideas all year long. So whether big or small, implementing the above 5 methods in the workplace can make or break the coming New Year’s resolutions.

Extra Inventory From the Holidays? 6 Ways to Use it Now and Plan for Next Year’s Product

Holiday sales for any business can have a major impact on how the next year begins. Anticipating for the rush can sometimes leave small and big business with excess inventory and decisions to make with what to do with it now, as well as what to do next year to avoid over-ordering. By following some simple steps, businesses can learn what to do with their current inventory excess and how to better plan for the next season’s holiday rush.  Paying attention to 6 key ways to use extra inventory can keep any business in the black.

Save It: Sure sounds easy and simple. Almost too simple. But if your product or business is in a position to hang onto the inventory for the following year, or for another time to sell, then try and store it. It may be wise to save it for a rainy day.

  • Next Year: Try and use some inventory from this season for the next if the product can withstand a year of consumer shift. Order less of the “new” next year and mix in current with latest product on the shelves.

Sell as “Bundled” Package Deals: Consumers love great products and they love feeling like they are getting a steal of a deal. So, if you can, bundle some of the extra products into a “package” deal for a limited time offer. Combine items and lower the cost per item for a nice price point and great bundled offer. Consumers will benefit from a “deal” and you will move more than one product off the shelves.

  • Next Year: Start by selling bundled deals from “last season” next to the latest product at a slightly higher price. Consumers may not buy the new product but will quick to grab the “last season” product at a sale price.

Offer Discounts Next Year: Who doesn’t love a deal? So, why not offer a double win for a consumer? Offer your product with the added benefit of an automatic discount on ANY item or product the next season. Consumers like to know they will get something now and like even more the idea of added benefit the next year. If your product is one that consistently is updated, the offer alone will create some buzz for this and years to come.

  • Next Year: Consider how many products were sold with the current offer and the offer for the following year when you go to place new inventory orders. By looking at how many consumers purchased that deal this year, you can better assess how much you will need.

Create Promotions: Current products make great promotional items. Offer consumers a “free” product with purchase of another. If the product is one that can go well with other purchases or even be used as a promotional item at an event, raffle, give –away, and beyond, then the price you “eat” may be good for future business and getting your unused product in the market. Promotions are a solid way to grow your brand and product.

  • Next Year:  Factor in any promotional items you may use and reduce purchasing any promotional items this year. Use what you have and refrain from ordering any other marketing or promotional items if you have inventory on hand.

Slash Prices: Sales sell goods. If you can offer a great discount and cut prices on your products, it’s a great way to get buyers to take your extra inventory. Think about all the extra holiday lights, artificial trees, and snowman wrapping paper that go on sale the day after Christmas. Jump on the price slashing bandwagon and throw one heck of a holiday deal.

  • Next Year: Anticipate this tactic and use to your advantage. See what goes the fastest once you slash the prices and consider the profit made from this. If it’s a good solid money maker, ordering a little extra for this same reason next year may be a good move.

Inventory Liquidator: Not the first choice by any stretch, but if you find yourself in a major pickle then go with a liquidation service-but be cautious. Be aware of the risks to your product integrity and brand name. For some this is a last resort option but if you need to move a lot and reduce the bleeding this may be an option to consider.

  • Next Year: Run the numbers of this years liquidation and forecasted sales to see if you can withstand this same hit the following year. If it’s too close to call, order less and start to consider ideas for back order deals or offers.

Business owners know the ups and downs of planning for the holidays and strategic planning of ordering inventory. However when that inventory doesn’t sell in the current year, the worry and stress to move that product rises. By implementing the above 6 ways to use that extra inventory now and plan for next year’s product, business owners can tackle the holiday rush with a smile and game plan.  Nobody said Santa Claus couldn’t come to town all season long.