Christmas planning: How seasonal businesses can prepare for their busiest time of year
Updated: Oct 4
Let’s talk about Christmas. Yes, we know it’s September and way too early, but we’re not suggesting you dust off the old ‘Slade x The Pogues’ playlist or start lighting a bunch of spiced apple and cinnamon candles. Traditions can wait.
We’re talking about that Christmas planning mentality.
There are two types of people at Christmas.
There are those who have started buying presents in September or October, booked their Christmas dinner weeks ago, and already know exactly what they're doing between Christmas Day and New Year's Eve.
Then there are those who realise on the 23rd of December that they still need to buy gifts, find somewhere to buy a turkey, and somehow organise three different family gatherings at the last minute.
Both groups eventually get to Christmas. But one of them is likely to enjoy the run-up considerably more.
Business planning is a little like that. It is especially important when you run a seasonal business that relies in upticks in trade, such as the Christmas rush.
If you own a seasonal business, it is vital that you have a proactive approach to business planning, and ensure all your preparation is taken care of well ahead of any seasonal trade windows.
Learn why that mindset is so essential, and discover a few other business tips for owners looking at long-term planning.
Don't wait until you need the money; plan to have funds in place
One of the biggest challenges for seasonal businesses is the timing of cash flow.
Imagine you're a retailer expecting a significant increase in Christmas sales. You may need to purchase considerably more stock in September, October or November, well before the majority of those sales happen.
The same applies to a hospitality business preparing for a busy festive period, a manufacturer increasing production ahead of higher demand, or a service business taking on additional staff to cope with a seasonal increase in bookings.
The investment comes first. The income comes later.
And that gap can put pressure on your cash flow, even when you have a strong sales forecast.
That's why it's worth looking beyond your expected annual revenue and considering exactly when money will be coming into and leaving your business.
Cashflow forecasting can help you identify when you'll need additional funds, how much you may need, and when you'll need them. It can also help you avoid the slightly uncomfortable situation of having plenty of expected sales on paper, but not enough money in the bank to pay the bills before those sales happen.
Don't wait until your busiest season is already underway; get your business plans in place early
If you know your busiest period is approaching, don't wait until you're in the middle of it to start making plans.
Funding might be a cashflow solution. Yet, one of the biggest mistakes businesses can make is leaving funding conversations until the point where the money is urgently needed.
A Business Loan could help you to:
Purchase additional stock
Take on temporary or permanent employees
Increase production
Purchase or upgrade equipment
Cover increased operating costs
Invest in marketing ahead of your busiest period
Move to larger premises
Manage a temporary cashflow gap.
Applying for funding, whether it’s a Business Loan or a Start Up Loan, is rarely something you want to be doing at the same time as dealing with an urgent business problem. It can be a time-consuming process and needs to be tackled proactively.
Starting the conversation early gives you time to understand your options and prepare properly, rather than making a rushed decision because the clock is ticking.
You may need to provide information about your business, finances, cashflow forecasts, and overall business plans. You may also need to think carefully about affordability and how the proposed borrowing fits into your wider business strategy.
Having these things prepared in advance can make the process much easier. More importantly, it can make you think more clearly about the decision you're making.
Preparing your numbers isn't just an administrative exercise. It can highlight potential challenges, reveal opportunities, and help you understand whether your plans are realistic.
Read more: Preparing for a Business Loan application successfully and 10 common mistakes applicants make during their loan journey
Remember: planning is much easier to do when you give yourself a wide window, rather than trying to work through everything while also dealing with your busiest trading period of the year.
Think beyond the busy months — a strong business plan has a long-term outlook
Seasonal businesses also need to plan for what happens after the rush.
A strong Christmas trading period doesn't necessarily mean your cash flow will immediately become comfortable in January.
You may have additional supplier bills to pay. You might have taken on staff for the busy period. You may have invested heavily in stock, equipment, or marketing. And, depending on your business, January could be one of your quieter months.
That's why seasonal planning shouldn't just focus on how you're going to make the most of your busiest period. You also need to consider what happens before and after it.
Ask yourself:
How much cash do I need to get through the quieter months?
When will my major supplier payments be due?
When will seasonal staff costs increase?
How quickly will customers pay?
What happens if sales are lower than expected?
Will I have enough money left to cover my regular costs once the busy period ends?
Looking at the whole cycle can give you a much clearer picture of what your business actually needs.
Leave some room for unexpected outcomes
There is one important difference between business planning and planning Christmas. At least with Christmas, you generally know when it's going to happen.
Business doesn't give you that luxury.
A customer might pay late. A supplier's prices might increase. Equipment might break. A new opportunity might appear unexpectedly. Something that looked straightforward six months ago might turn out to be considerably more complicated.
That doesn't mean you should try to predict every possible disaster. It means your plan should have some flexibility built into it. You might want to consider:
What would happen if sales end up lower than expected?
What if costs increase?
What if you need to hire sooner than planned?
What if an important customer pays 30 days later than expected?
Thinking through different scenarios can help you understand where your business has room to manoeuvre and where it might need additional support. You can even build emergency systems into your plans, such as having the right insurance in place or a healthy cash buffer to ease pressure if cash flow drops off.
Smart business planning doesn't mean having all the answers
Perhaps the most important thing to remember is that seasonal planning (or even business planning in general) isn't about producing a perfect document and then following it rigidly for the next five years.
It's about giving yourself a clearer starting point.
Your plans will change. They should change.
As you learn more about your customers, your market and your own business, you should be able to adapt. The same applies to your funding plans.
You might initially think you need a £50,000 Business Loan and discover that a smaller investment will achieve what you want. You may even discover that your business is still eligible for a Start Up Loan and more favourable lending terms.
Or you might realise that the opportunity is bigger than you first thought.
Speaking to a Business Advisor or finance provider early can help you explore those questions before you reach the point where you have to make a decision quickly.
Start planning before you need to — get in touch to discuss your options today
Christmas planning works because you start before Christmas actually arrives. Business planning works on much the same principle.
If you know that you want to grow, invest or make a significant change to your business over the next six or twelve months, start thinking about it now.
Look at:
Reviewing your cash flow
Researching what potential investments are likely to cost
Mapping out when exactly you’ll need the money
Examining whether you can afford to make repayments
Ensuring your financial information is up to date.
And, if you're considering finance, start the conversation early enough to give yourself time to understand your options.
At First Enterprise, we work with businesses at different stages of their journey, helping business owners understand their funding needs and explore finance that could support their plans.
You don't have to wait until the business equivalent of Christmas Eve.
In fact, we'd much rather speak to you while there's still plenty of time to put the kettle on, look at the numbers and work out what comes next. To start the conversation, simply complete the form below or give us a call at 0345 602 7355.
Because when it comes to seasonal business planning, being the person who starts early isn't boring. It just tends to make December a lot less stressful and a lot merrier.
Please note:
This article is for general information only and does not constitute advice. All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article.
We always recommend that you seek direct financial advice from a relevant expert or professional before making any financial decisions.
First Enterprise is a not-for-profit, FCA-regulated finance provider offering loans from £500 to £250,000 for startups and growing businesses across the UK.
We support businesses that struggle to access mainstream finance, with a focus on underrepresented groups. Funding is delivered through government-backed national and regional programmes.
We offer human-made lending decisions, a dedicated advisor for every applicant, and no penalties for early repayment.
