Research by small-business lender OnDeck Australia has dispelled the myth of a festive holiday season for small businesses in terms of revenue, with only 22 per cent of those surveyed considering Christmas to be a peak revenue period.
Drilling down further into OnDeck’s findings, only 49 per cent of small retailers point to the festive period as a critical sales period.
“It is a testimony to the strength and resilience of small business in Australia that the majority of small enterprises don’t rely on Christmas as a make-or-break sales event,” Cameron Poolman, CEO of OnDeck Australia, commented on the report’s findings. “Undoubtedly, the festive season can be a leading sales period for some small businesses. However, it has the potential to bring significant challenges to others, especially those businesses operating in industries such as construction that often shutdown completely over the holiday period. This can bring the potential for a rapid upswing in annual leave expenses at a time of slowed or completely halted business activities.”
The research identified that across all sectors, 18 per cent of small businesses start preparing for the festive season three months out from 25 December.
“Unless a business can recoup these costs through increased Christmas revenue, the end of the year can present a serious cashflow squeeze to a small business,” Poolman warned.
With only weeks left until Christmas and the New Year holiday period, Poolman stated that small businesses would need access to finance as soon as possible and that such a scenario calls for rapid funding decisions.
“With only weeks remaining until Christmas, small businesses have a narrow window of opportunity to access fast, effective finance that can be the make-or-break factor to navigate the busy weeks ahead,” he said. “It may be the ‘silly season’, but smart use of commercial lending can be the factor that helps small businesses manage the holiday period and set out on the path for success in the New Year.”
Poolman shared his top five tips for small-business owners to make the most of the festive season:
- Leverage rapid finance to tap into discounted trading stock.
- Bolster their online capabilities.
- Start recruiting early.
- Enjoy some ‘me’ time.
- Look for turbo-charged funding solutions.
