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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.

Increase Sales in 2017 with a Solid Marketing Plan

Every business owner hopes that the upcoming year will be more successful than the last; but instead of just  hoping, entrepreneurs can create plans to ensure those goals are met. New product launches, expansion and franchising are common way to increase sales, but they are risky and costly. However, implementing a new or improved marketing strategy can benefit a business at a lower cost, or can be budgeted for easily.

What are the Benefits of Marketing?

Blue Cow Creative lists several benefits of marketing, including promoting brand recognition, advertising your services or products to customers, selecting which clients to target, and allowing you to communicate with those individuals in a timely manner.

The bottom line is that a business can offer the most innovative product, or the most cost-effective service, but without marketing the offerings to their intended audience, no sales will follow.

What are the Most Effective Forms of Marketing?

There are a multitude of marketing strategies; there is the traditional, interruption marketing, which interrupts an individual’s day with a cold call, or a television program they are watching with a commercial. Another alternative is permission marketing, which only targets the individuals who give their consent to be contacted.

Research has proven time and time again that permission marketing is not only more cost-effective, as you are not spending funds to contact individuals who have no interest in your business, but is also more effective. It is much easier to close a sale with a person interested in what you have to say, than one who has to be persuaded. Below we list three different types of permission marketing:

Email Promotions 

Emails allow you to communicate with a targeted audience in order to announce new products, sales, special deals and events. There are several ways to ask customers and potential clients to sign up for your email promotions. If you have a physical store or office, you can ask visitors to add their contact information to your list. If you have a website, you can create pop-up advertisements asking people to opt-in to receiving email communication from you. To entice them to sign up, consider offering an exclusive discount or a an entry into a drawing.

Social Media

Social media is an effective marketing tool for any business. It is a form of permission marketing because people have to choose to follow or “like” your business page, and if they always have the option to stop receiving communication by deleting access to their profile.

There are a plethora of social media platforms to choose from; Facebook is the most popular one, allowing access to 1.79 billion monthly active users, but Instagram, Twitter and Pinterest are also beneficial to use to connect to your target audience.

Be strategic about what you post on social media; remember to be honest and ethical, yet make your posts and images eye-catching and creative in order to get noticed. The biggest advantage of social media is that other members can share your posts with their network, providing a form of free advertising.

Influencers

Influencers are individuals that can sway the purchasing decisions of others because of their expertise, authority, or knowledge in a certain area. There are fashion influencers, who curate outfits for their audience, beauty influencers who recommend makeup brands for specific skin needs, etc.

When considering ways to market your brand in 2017, research relevant influencers in your industry. You can contact these individuals through their personal blogs or social media platforms to ask them to recommend your product or service. The best part is that these people already have large fan bases, so your offering would be shared with a multitude of potential customers who want to hear what the influencer has to say. Keep in mind that as payment for their promotion, influencers may request payment in the form of free items or actual monetary compensation.

With the new year quickly approaching, set your marketing budget now so that you can pursue relevant strategies for permission marketing. Get your budget in order before the new year with our Business Budget Smart Sheet.

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Goals for 2017: How to Set and Keep Them

Each December, we reflect on the past year and what we can do to improve in the coming months. We take stock of what goals we achieved and where we fell short.  Come January, we promise ourselves to be more productive; whether it’s at work in order to earn a promotion, to eat healthier, or to open our own business. Instead of being discouraged again next December, let’s make 2017 different, and achieve our goals with the help of the following tips. Together we can set realistic objectives and create actionable plans to keep ourselves accountable.

Set Realistic Goals

While New Year’s resolutions don’t always have to be serious and boring, they do have to be realistic. For example, you can challenge yourself to travel more, but don’t set yourself up to fail by promising yourself to travel the world in the next 366 days (2017 is a leap year!)

You know yourself better than anyone else, so only you know what goals you are capable of fulfilling, and what is and is not realistic. If you have set similar resolutions in the past, but never managed to keep them, consider a different plan that may be easier to achieve.

Minimize the Number of Goals

A new year offers a new beginning, so it may be tempting to set out to accomplish numerous goals, but be sure to plan with caution. It’s a better strategy to commit to a few goals, and truly concentrate on achieving them, than to set many objectives and not have the time to accomplish any of them.

For example, if you pledge to lose 10 pounds this year, this will require you to spend time cooking healthy meals and dedicating more personal time to exercising. Don’t also promise yourself to volunteer more, as both goals require you to commit time after work and on weekends, and you may experience a burnout and not accomplish both successfully. Prioritize your free time and see what goals fit best into your schedule for the best success rate. 

Create Actionable Plans

Once you make your resolutions, it’s easy to procrastinate. To avoid postponing your goals, create actionable plans to keep yourself accountable. It can be advantageous to create general milestones, and divide them into individual steps that can be tallied at the end of each month. This way, you will stay reminded daily of what is required to achieve your goal.

For example, if your resolution is to open your own business this year, the first month can be dedicated to doing market research on the competition. The second month can be spent creating marketing materials, and the third committed to obtaining proper business licenses. 

To keep motivating yourself, make sure you visualize your progress by writing down your goals and the steps necessary to achieve them. The more items you are able to cross off your list, the more motivated you will be to keep going!

Is better budgeting one of your 2017 goals? Check out our Business Budget Smart Sheet to help you easily plan, track, and visualize spending.

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Your Small Business Saturday Attack Plan

Thousands of small business owners across the country participated in Small Business Saturday, an annual event held on the first Saturday after Thanksgiving. Sponsored by American Express, it is intended to bring awareness to small businesses, and encourage patrons to skip big box retailers and shop small to support their local communities.

Small Business Saturday helped many companies attract new customers as well as potential leads. Instead of waiting for next Thanksgiving, business owners should act now to continue momentum into the holiday season and keep clients loyal throughout the entire year. Utilizing marketing emails, exclusive discounts, and “shop small” events are good strategies to stay in touch with new and potential customers.

Emails

An efficient, yet inexpensive way to communicate with your customers is through marketing emails. Sending marketing materials through the mail can be expensive, but with a little effort, you can send emails free or at a low cost. On Small Business Saturday, you likely urged your business’ patrons to sign up for email lists, and now is the time to utilize that list to reach out to them.

We recommend investing in a customer relationship management system (CRM), which will help you manage your client information, and send personalized emails with your customers’ contact information, in addition to recommendations based on their shopping history.

Many CRM programs offer A/B testing, which allows business owners to send two different marketing campaigns, and evaluate which was more popular based on clicks and purchase patterns.

When sending emails, remember that individuals are bombarded by hundreds of emails daily, so make your headlines catchy, funny, and enticing to open!

Exclusive Deals and Discounts

The reason that so many customers frequent local businesses during Small Business Saturday is because they are offered discounts and freebies. Business owners need to remember that discounts can, and should, be used throughout the year to incentivize sales. When customers believe that they are getting a deal, they are much more willing to spend their hard-earned money than if they believe they are paying full price.

How do you structure discounts? Shopify.com lists three main ways to increase foot traffic and maintain loyalty with discounts, which are:

  • Promotional pricing – Discounts and bundle pricing, such as “buy one, get one free”
  • Point-of-purchase displays – “Impulse buys” that individuals don’t plan on purchasing when they come into the store. Bins with small items next to the register are great incentives for point-of-purchase displays.
  • Loyalty programs – Membership and punch cards, as well as a points system which reward customers with discounts or free items.

Events

unnamed1The holidays are the perfect time to organize events for your customers and potential leads. Planning a holiday party in your location will create a reason for you to invite Small Business Saturday patrons back to your location. In fact, one source claims that purchasing decisions are based more on emotions rather than on logic; therefore, face-to-face events allow brand owners to create an emotional connection to increase loyalty and drive sales.

Be creative and think of original ideas to drum up enthusiasm for your business; for example, IOU Financial held a scavenger hunt partnered with local discounts in Downtown Woodstock, GA. 

One caveat is that holiday parties and other events can turn into a financial strain if not planned for properly. Opening the doors and allowing streetwalkers to come inside can quickly lead to hundreds of people sampling your goods without guaranteed sales.

Not many small business owners can allow themselves to host expensive events, especially during the holiday time. Therefore, it is essential to plan and budget for events; one strategy is to hold member-only events with a concise guest list that goes out only to the most important customers. Another way is to invite customers and ask them to RSVP, allowing access to the first 50 who respond.

Keep the line of communication open between you and the customers you met during Small Business Saturdays with marketing emails, discounts and events. Remember, the more effort you put into promoting your relationship with your clients, the more loyal they will remain to your brand.

Holiday Sale Season: 5 Tips For Keeping Your Business Focused Through the Holidays

It’s the holiday season and your business is ready to make some happy shoppers and gift givers. But keeping customers happy and keeping your business focused through the holidays can be trickier than driving a one horse open sleigh. Paying attention to the following 5 ways will ensure your business is laser-focused through the holiday stretch, and will provide your business with durability for any shopping rush.

Keep Product in Stock

Nothing is worse than a customer wanting a product you sell and it is out of stock. Ok, there could be worse things, but that is one that you don’t want to worry about come mid-holiday season. Prepare for the long haul by keeping product in stock. Supplying larger amounts of inventory could lower the upfront cost to stock the shelves per unit, and if the items do not sell you can push them beyond the holiday season. Stock up to sell out.

Coordinate Coverage

Hiring and staffing for the holiday season should also increase as you anticipate an increase in customer traffic. Finding coverage in advance is crucial to ensuring you don’t get distracted by staff calling out sick, leaving for holiday vacations, or the unfortunate circumstances that arise when working with temporary holiday staff. Coordinate the coverage as far in advance as possible, and create a plan to guarantee that if one employee falls out of the mix, your whole plan for staff duties does not unravel.

Set Benchmarks

Finding out what the upcoming season looks like one day at a time could cloud your judgment, business decisions, and plans for the totality of the holiday stretch. Outline your next few months of holiday rush with a “syllabus” of sorts. Map out benchmarks, sales, and marketing ideas. Structure the staff, supply, and price points that you want. When holidays come around, execute the plan and follow the predetermined benchmarks. Don’t base your decisions on one day’s worth of good or bad business.

Enjoy the Business

While the holidays can be stressful, try to enjoy the increased sales, new faces, and products you are getting into the homes of possible new or new long-term customers. Try to enjoy each transaction and allow yourself to profit from not only the financial aspects, but from the relationships, new contacts, and extra attention at your store.

Prepare Now

Don’t wait to plan for the holiday rush the week before. Plan and prepare now. Try and assess what products may be best sellers, survey your customers on what items they may want for holiday gift giving, or even start developing promotions for the holiday deals you will be offering. Do not wait for the season to get underway before you start planning for what you want to accomplish. Prepare now.

It’s the most wonderful time of the year and your business can be ready to embrace it and capitalize on it. Start today and implement the 5 tips to keep your focus during the season so you can pay more attention to sales and customers, and less attention to hoping reindeer will land on your roof bringing you extra customers. Start planning today so you can enjoy the holiday rush! 

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How to Predict Your Inventory Needs for the Holidays

As the weather starts to cool, merchandisers’ thoughts turn to Black Friday, the day after Thanksgiving, while online sellers are more interested in Cyber Monday, three days later. Then comes the whole Christmas shopping frenzy, and the post-Christmas bargain hunting. In all cases, getting your inventory right can make the difference between a profit or loss for the whole year.

Merchandisers have been busy planning their holiday inventory since August, or earlier. That’s important, but how do they get the numbers right? Brick and mortar stores need to know what and how much inventory is needed for each location. Online merchandisers must have enough inventory to withstand the blizzard of last minute shopping that occurs when consumers can’t find what they are looking for at retail locations.

Make the right prediction, and you’ll sell out most of your inventory without too many stockouts. Predict unwisely and you may be sitting on a ton of unsold merchandise in January, or empty shelves in mid-December.

The biggest part of the answer is data, and the software that makes sense of the data. We’re talking about programs that track sales of certain products over time at certain locations, applies information about buying trends, selling strategies, margin requirements and so forth, and then provides an estimate of inventory requirements by product and location.

The program is run iteratively as new data becomes available, so that retailers can make late adjustments if needed. For example, a weather event during the holidays may shift supply/demand balances in the affected area. Changes in consumer spending, safety recalls, economic disruptions and many other factors can influence inventory requirements.

Predictions aren’t too useful if you can’t implement them. One of the biggest problems is financing. If you predict a 20 percent increase in required inventory levels, you’ll need the money to pay for extra goods. This is one area where IOU Financial excels, as we provide loans quickly, without a lot of red tape, so that you can pay for additional inventory and take full advantage of anticipated demand. A small business loan could help you organize your finances before the holidays!

The next step of the process is to establish milestones and set goals. Products have to be ordered, received and stored according to strict timetables that depend on your predicted inventory needs. Knowing in detail what you will need and when you will need it allows you to begin shopping around for low-cost suppliers and carrier services. If you have a good relationship with a carrier, you can leverage it by agreeing on moderately higher rates for preferential treatment during the holiday peak.

Of course, knowing what you’ll need to store and transport can help you plan your capacity and logistics. You may need to lease additional warehouse or storage space for the holiday season. This is a critical decision, because it affects how efficiently trucks can be used to deliver goods to retail locations and/or customer locations. There are supply chain consultants that can help you manage logistical challenges during the holiday season.

Another area of concern is any additional labor that will be required to satisfy requirements to order, store, deploy and sell merchandise in an optimal fashion. You may have to recruit and train temporary workers to support inventory operations. If you own a small, single store, you might just need one or two temporary workers, but a larger operation may affect warehouse operations like picking and sorting.

Finally, you need to manage your store so that consumers can locate hot items quickly. You must also put aside enough space to receive and deploy daily shipments of new goods. Of course, you’ll also want to evaluate your store staff and hire extra cashiers or stock clerks as required.

Plan an Effective Holiday Party for Your Small Business

With the holiday season quickly approaching, many small business owners will be considering how they will celebrate this time with their employees and clients. Many employers host holiday parties to celebrate the season; however, as the end of the year is typical time to give out bonuses and pay increases, budgeting for these expenses is crucial. A holiday party can be a small and intimate affair or a grandiose event – but remember, as a business owner your end goal is to make money. Be thinking, “how can I use this to make employees more productive”, or “will key clients be more invested by attending?” Before sending out invitations, there are  three things to take into account when planning a corporate holiday party: your employees, your clients and your budget.

Employees

Decide how many employees you are going to invite; if you have a small team, this will be an easy choice. If you have a large workforce with hundreds of staff members, you will need to be certain that you can afford to invite them all. If you cannot, you will need to create a plan for selecting the team members you will invite.

Photo of happy colleagues holding champagne flutes at corporate party

You can choose the individuals who hold the most senior titles or who have been with the company the longest, or can focus on your star employees, such as your top salespeople. If you will not be able to invite the entire team, make sure the selection process is fair so that the employees who are not invited don’t feel slighted or overlooked.

Some bosses invite the employees’ spouses or entire families, depending on the type of event. Consider whether you will make this an option or not. The end goal of having employees attend the event is to reaffirm the hard work from the year, allow them to have some fun with co-workers, and encourage them for the year to come. Investing in employees attendance correlates to an investment in next years productivity.

Clients

A holiday party can be a good opportunity to network with current or prospective clients. You can utilize this event to introduce clients to staff members, or announce important company news or goals for the next year. Simply, a holiday party is a chance to impress your clients to increase their loyalty to your business.

Think about whether you want to invite your staff and your clients to one single event; and how you will choose who to have there. If you have a small business, such as a hair salon, a restaurant or a store, you can simply host a “Holiday Open House,” where you offer holiday treats to anyone that walks in. If you have a business that cannot accommodate a holiday party, or have VIP clients that will expect a finer affair, you will need to budget for a more elaborate event. Any event that you are inviting customers and clients to should ultimately give them reassurance in your business and generate future sales.

Budget

Once you have decided who you will invite to your office party, you need to budget for it. Consider whether you will be able to put on the event yourself, or with the help of your employees, or if you need to hire a professional event planner. If you decide on inviting over 50 people, it may be worthwhile to pay a professional instead of spending the time you can be focusing on your business, especially if the holiday season is a busy time for you. 

When deciding your budget also consider your return on investment. How much additional revenue will employees generate after their increase in motivation and loyalty to the company? Will customers recommit to using your service, or purchase more products when they are able to meet the team they are supporting? Ask these questions to start understanding what reasonable spending will look like for your small business, and if you need assistance in budget tracking, consider using a Business Budget Smart Sheet.

Although a holiday party can be a big investment, it can provide many benefits to your company, such as increasing employee retention, customer loyalty, and higher sales. It may be advantageous to secure a small business loan from IOU Financial to invest in this event to grow your business in the next year! Contact us today to get a loan in under 24 hours!

Best Ways for Small Businesses to Plan for the Holidays

The holiday season means different things to business owners; while some experience a slow season, others have a surge in profits. Regardless, all small business owners need to prepare for this season, or your business could be negatively affected.

 

Plan for Holiday Recognition and Marketing

You must plan and budget for how you will recognize the holidays; realistically consider how much you can allocate to holiday decorating and recognition so that you don’t put your business in financial risk.

Some businesses simply hang a few holiday decorations, while others transform their entire office space. If your business has customer facing foot traffic, consider getting a few estimates for hanging lights, displays and installations. If your business caters to children, you may consider hiring actors to play Santa and Mrs. Clause, which must be accounted for in your budget.

If you will be offering specials or discounts during the holiday season, allocate a marketing budget to advertise those deals. Whether you will run online ads, send out in-home mailers or give out coupons, you must have the funds to spend on marketing to alert your customers of your plans.

 

Plan for a Holiday Party

Most business owners put on a holiday party during the season, but you must decide how elaborate it will be and who will be included in your guest list. Some business owners choose to host small holiday parties for their employees, while others hold large events with VIP clients, employees and their families.

Even a small holiday party can cause a financial strain if not properly planned for. Since most employers typically give out bonuses and annual raises during this time, it may be difficult to commit to another large expense simultaneously, which is why it is essential to start planning now.

Investing in a larger event can provide you with an opportunity to network with business associates, partners and important clients all in one place. You can take this time to announce important company milestones and plans for the following year. Large company parties may require significant preparation and a large investment, so it may be wise to get estimates from professional event planners beforehand.

 

Prepare for a Slow or Busy Season

A busy or slow season can be a determinant of whether you are open or closed for the holidays; if you anticipate a slow time, consider closing your doors for a few days rather than paying operating costs. If the holidays are your busiest and most profitable time, create a holiday schedule in advance so that your employees know when they are scheduled to work. Remember that you have to pay full-time employees overtime for working on holidays, such as Christmas.

To be able to handle the holiday rush, you may need to hire additional staff as well as have the time to train them. Make sure that all your employees are aware of any holiday specials you are going to introduce, such as special merchandise, a holiday menu, discounts or sales.
The holidays can be a financially stressful time for many business owners, but finances don’t need to add to those stresses. Consider what a small business loan from IOU Financial could do to help your business’ cash flow. Contact us today to find out how we can approve you for up to $150,000 in under 24 hours.

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