It’s beginning to look a lot like Christmas – Is your business ready?
Step into any supermarket right now and you will find a cornucopia of festive treats assailing your senses as the shops proactively prepare for Christmas.
You might think they are being too eager in rolling out the festive lights, even as you guiltily munch on an October mince pie, but the eagerness of the supermarkets should be mirrored by all businesses.
Whether Christmas is your busiest time of year or a complete dead zone, your business needs to be prepared for the change in routine.
Leave it too late and you may not have a happy New Year, so we want to show you the best steps you can take right now to get ready for Christmas.
Why is it important to prepare for Christmas early?
Most people do not want to think about the festive season until after Halloween.
While that is a valid personal choice, your business cannot afford to be so selective.
Christmas is a disruptive time for businesses, regardless of whether you celebrate it or one of the other holidays that take place in December.
Schools close and many businesses do the same as people seek to spend time with their loved ones.
If your business is set to close for any amount of time, you want to make sure that this will not negatively impact your finances.
Take the time now to assess your financial position and reconsider any big investments or purchases that could be disrupted by your business closing or slowing down.
By having some funds kept aside, you can take a more relaxed festive break knowing that your business will not be suffering in the background.
For other businesses, Christmas is an exciting time of year with huge revenue potential.
It is vital that you understand how to make the most of the seasonal rush so that you can pave the way for growth in 2026.
How can businesses prepare for seasonal growth?
Understanding that seasonal growth may not be indicative of wider success is important in managing any increase in revenue.
Businesses should carefully manage any additional funds they bring in over the festive period and invest them wisely to secure future growth.
To fully leverage the opportunities presented by the season, you may need to onboard seasonal workers.
This should be done effectively and efficiently, as you will need to meet payroll requirements for any staff as soon as they begin work.
This means paying everyone at least the National Living Wage (NLW) or the National Minimum Wage (NMW), depending on their age and you may need to adjust the rates of pay if they have a birthday while working with you.
The current rates are:
- £12.21 for people aged 21 and over
- £10 for people aged 18 to 20
- £7.55 for people aged under 18
- £7.55 is the apprentice rate
Any business that handles gratuities and tips needs to ensure they are managed in accordance with the Employment (Allocation of Tips) Act 2023.
This will mean that you need to create a clear policy that fairly divides tips and gratuities based on how you feel they should be distributed among your team.
Employees are entitled to 100 per cent of the tips they earn and any division of tips should be managed by a troncmaster who will have control over the tip pool – otherwise known as a tronc.
Unlike in some parts of the world, tips cannot be used to supplement a wage, so the NLW or NMW will still need to be paid, but tips are included in payroll documents to ensure full transparency.
How can businesses make the most of the festive season?
Whether your business is about to boom or slow, you will benefit from expert advice and guidance to ensure that you make the most of it.
We can help you manage your financial obligations to ensure that you invest or save accordingly so that your business can be well-positioned for the New Year.
We take the time to understand the unique nature of your business and can guide you on how best to manage any seasonal changes.
This includes thinking about how to approach your financial structure as well as any payroll compliance considerations for seasonal workers.
Give yourself the gift of a better financial future by speaking to our team today!
