For SMEs, the festive season offers a rare chance to step back from busy day-to-day operations and see the bigger picture. While it’s time to unwind, there are also some areas to focus on before year-end, to ensure your business is well-positioned to thrive in 2025.
“Year-end and the festive season is an opportunity to take stock and ensure that all your ducks are in a row for the year ahead. Proper planning during this period can mean the difference between starting strong or playing catch-up in January,” says Megan Dedekind, Area Manager at Business Partners Limited.
She suggests focusing on the following five key areas:
- Cashflow Management
It’s not uncommon to experience reduced activity over the festive period, so cashflow management needs to be watertight. “Follow up on outstanding invoices to ensure you close the year having collected as much revenue as possible,” advises Dedekind. “At the same time, prioritise settling payments to avoid penalties and maintain good supplier relationships.”
She also suggests getting ahead of early-2025 expenses, such as staff salaries, operational costs, or inventory. “January can be a challenging month, so having a financial buffer in place can prevent unnecessary stress and interruptions.”
- Stakeholder updates
Clear communication is key to ensuring you’re on the same page as stakeholders, says Dedekind, who recommends sharing holiday plans early on. “If your operating hours are different over the festive season, inform your customers and suppliers well in advance. This can be done via emails, social media updates and notifications on your website.”
A personal touch also goes a long way, adds Dedekind. “Take the time to thank your customers for their support throughout the year and let them know what to look forward to in the coming months. It’s a good way to remain top-of-mind even while your doors are closed.”
- Employee Recognition
Dedekind encourages businesses to acknowledge high-performing employees through gestures like year-end celebrations or personal tokens of appreciation. “Remember your people are your biggest asset. Even small acts of appreciation can have a big impact on team morale and motivation.”
It’s also essential to set clear expectations for your team over the festive period. “Communicate holiday schedules, leave policies, and any responsibilities that extend into the new year to ensure a smooth transition back to work.”
- Operational Security
While some businesses may close for the holidays, risks such as theft or data breaches remain a concern. “Secure your premises by making sure the alarm system is functional, notifying security companies of any closures, and safeguarding valuable inventory or equipment,” advises Dedekind.
“With the increasing reliance on digital systems, it’s also essential to back up all your data, and update security software before logging off for the year,” she adds.
- Strategic Planning
The quieter pace of the festive season provides an ideal time for reflection and forward planning. Dedekind suggests reviewing your wins and losses, ensuring alignment with the business plan. “Look at what worked, what didn’t, and where there are opportunities to grow in the coming year. This is your chance to refine strategies and set measurable goals for 2025.”
By taking a deliberate and strategic approach now, small business owners can turn downtime into a competitive advantage, says Dedekind. “The festive season is a reminder that balance is key in running a business. Winding down can be great – and necessary – but don’t miss the opportunity to set yourself up for a strong start to the year ahead,” she concludes.
