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Effective Planning & Budgeting for Businesses

Christmas is nearly upon us and it is predicted that the UK spend on gifting this year will be in the region of £25.6 billion!!

If you are a UK business owner then happy days, you will enjoy a slice of the pie. 

Whilst the Christmas season will boost your sales, all businesses need to be prepared so that they are not caught out with the January blues when spending declines as consumers close their purses and wallets, to recover from Christmas spending. 

For quite a few industries such as hospitality and tourism, this downturn can last a few months with the joys of Spring & Easter kickstarting sales again.

So businesses need to plan ahead! 

Its really important to create a 12 month plan in readiness of the coming year and this exercise can take some months, to ensure it is a true reflection of i) your goals ii) environmental factors iii) contingency factors

This plan will help you to conserve funds when you are able, so that you can cover your overheads during those times when the business may not breakeven.

This plan will enable you to keep your business going, keep paying your key staff, keep on the good side of your suppliers and continue to provide an income for you. 

Businesses are reliant on staff so you must always make sure that you hold on to those key people who help your business. It can be difficult to find staff sometimes, so if you have built a good team, hold onto it. If you find financially that you need to reduce spending on staff but do not want to lose any member then have a conversation with the staff member and maybe a solution can be reached such as short term reduction in hours.

So hopefully you have a plan in operation and you have a plan for 2022, but if you need help or advice, just get in touch! 

We wish you a very Merry Christmas and a Prosperous New Year.

rgsaccountants.co.uk 

#rgsaccountants #uksmallbusinesses #ukbusinesses #ukbusinessowners 

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