With Christmas just around the corner, most offices are closing up for the year, however for small business owners, the holiday period can mean headaches, hefty fees and huge competition.

The challenges facing the small business and food retailing sectors are many and varied; from extended trading hours to public holiday wages to Christmas promotions, it can often be hard to compete.

But despite operating challenges, Damien Guivarra, CEO of Australia’s only dedicated hospitality funder, Silver Chef suggests the holiday period is fraught with opportunities for cafes, bars and restaurants to cash in.

“Busy times bring pressure and challenges but also opportunities. When you’re prepared, the holidays can be one of your most profitable seasons,” Guivarra said.

Here, the Silver Chef CEO outlined his four tips for making the most of the Christmas period.

Staff

“Everyone wants staff! Demand is strong for casual employees and there are plenty of students keen for summer jobs,” Guivarra said.

“Now’s the time to dial up the casual recruitment program you’ve used all year – good conditions, quick training and a happy team will make your business the top choice those wanting work in the local area.”

Utilising a strong system of training that encompasses all elements of the business year-round  better prepares franchisees and business owners for the future, Guivarra said.

“Chances are you can keep some of these staff for permanent positions throughout the year, so it’s worth your while,” he said.

Rising costs

While the end of year period traditionally sees supply prices on the rise, Guivarra suggests leveraging the relationships and goodwill you have developed over the last 12 months.

“Businesses that pay on time usually get the first call about special prices or supply deals. Christmas menu prices can also be tweaked – mix up the offer and add seasonal extras, then add 5 per cent to prices,” Guivarra said.

Cashflow

Over the end of year period, the consumer demand for food and service-based industries greatly increases, however, it’s important to remember the ebb and flow of sales and cashflow.

“Great sales before Christmas are a bonus and it’s tempting to ‘go shopping’ with all that extra money. But paying for the extra supplies, group tax and GST must be done in January and February, so cash needs to be kept aside,” Guivarra said.

“Better bookkeeping systems will help you manage finances all through the year and squeeze every last drop of profit from the busy months.”

Building your customer base

Increased customer demand, means more customers on the hunt, with Christmas presenting the perfect opportunity to poach customers from your competitors or convert window shoppers to loyal brand advocates, Guivarra said.

“Your would-be customers have never visited before, so get them to join your email list or become social media fans,” he said. “Competitions to win a gift voucher for January can incentivise signups and give a boost to post-Christmas sales.”

Implementing digital initiatives as core to the marketing mix, with Guivarra suggesting Christmas promotions open to door for further customer engagement at a minimal price-point for business owners.

“Using digital platforms well are a great way for SMEs to stand out in this busy season. Social media advertising, strategic marketing and engaging posts on Facebook and Instagram to keep your business top of mind for customers,” Guivarra said.

“Investing in social media advertising to would-be customers is a cost effective way to connect with customers of all ages for the year ahead.”

Final thoughts

While the busy Christmas period is often looked at as something small business owners need to ‘get through’, savvy operators are looking to boost sales, customer base and goodwill.

Christmas is the period when consumers are looking to buy, be entertained and delighted, the retailers who are willing to provide experiences that are engaging and customer-centric will enjoy not only a strong December, but spoils well into the new year.