The holiday season can be a huge profit maker for many businesses. It is a great time for pushing to hit the end of the year profit goal, but this often takes money. The age old adage of “it takes money to make money” is certainly very true. It would be a shame to miss out on the all the profit promise of the season due to a lack of funds. How can you prepare and be fund ready for the season? What exactly do you need funds for?
There is a higher demand for many products and services during the holidays. You may need to increase inventory or add personnel in an effort to keep up with seasonal demand. This will, in turn, cost extra money. Of course, if the potential profit is higher than the cost, it is well worth it.
Supplies, Equipment, and Man Power
Depending on your product or service, you may need additional supplies or equipment during this time. Seasonal equipment can often be leased short-term and returned at the end of the lease. Determine if this is the best move or if purchasing the equipment so that is can be reused from year to year is a better option. If you clean homes you are going to need equipment and employees to keep up with the holiday cleanings. If you cater, you may need to hire servers. Supplies, equipment, and manpower often increase to keep up with seasonal demand.
Holiday promotions can be gold. Funding a big promotion, whether a huge holiday sale, a giveaway, or some other hook to reel in the customers, is not something that can be done by the seat of your pants. It takes planning and preparation.
The Big Question
Where does the money come from? There are several options. You could save for it, charge it if venders will allow it, or you can finance it. There are even more options when it comes to financing, but the two most versatile, practical, and common for seasonal funding are the small business line of credit and the small business credit card.
Biz2credit can help you with either of those options. Our extensive network of lenders offers all types of financing products to a broad range of businesses. We can help you find the perfect lender for your seasonal needs or for year round funding of growth, expansion, and more. Visit Biz2Credit.com today to get started.