Small business peak trading is a dynamic and lucrative time. Set your SME up for peak profitability over small business peak trading periods with these handy hints. As you limber up to capitalise on enhanced retail activity, be sure to consider:
- Staff penalty rates
Small business peak trading sends many SMEs off on a mission to hire casual staff. Certainly, the ability for your SME to meet consumer demand is key to your success. But be sure to fully consider the true cost of taking on casual employees before you put those job ads out. In October last year, Fair Work announced increased penalty rates for casual staff which will have a significant flow-down effect for SMEs.The first penalty rate increase was 15 per cent from 1 November 2018. Penalty rates will continue to go up five per cent per annum until March 2020. So what does that mean for SMEs looking to bring on casuals over small business peak trading? Find out definitively whether the increased staff penalty rates apply to your SME before you decide to take on casuals. That way you know the full cost of hiring more staff and protect yourself from any expensive surprises.
- Overstocking then discounting
Discounting is a tool that has been around for as long as retail itself. Yet discounting should never occur in a vacuum. Leveraging small business peak trading to move unsold stock can be a great opportunity. Make sure that a sound pricing strategy underpins any discounting you make though.
- Look to data from previous years
Business data can be a real ace up your sleeve during small business peak trading times. Mostly likely you collect much data in your daily operations. Therefore mine the gold that lies in your data to check out what sold well in previous small business peak trading periods. Base stock and any new staff hires on your data too. Certainly you want enough to meet demand, however you don’t want to end up costing your business in the long run by bringing in stock and resources that you do not need. In short, look to your own business data to make informed decisions which help you capitalise on small business peak trading.
Consider these three points closely when planning for small business peak trading. Informed business decisions are the strongest platform on which to make these periods pay dividends for your SME. Need any extra finance to ensure your SME has the stock, staff and resources needed to satisfy peak demand? Speak with Capify about flexible small business loans that are custom-designed specifically for SMEs.
Or call 1300 760 930 to speak with one of our friendly Lending Consultants now.