Showcasing the Best of Welsh Business

DEFAULT GROUP

Preparing Your Business for the Bank Holiday Season

SHARE
,

dave-atkinson-hs

 

David Atkinson

Regional Director

Lloyds Bank

 

 

___________________________________________________________________________________________________________________________

Ahead of the coronation this weekend, Dave Atkinson, regional director for Wales at Lloyds Bank comments on what the additional bank holiday means for the region’s businesses.  

“Many of the region’s businesses will be eager for a busy May in the hope that the Bank holidays and the King’s coronation will give them a boost. Naturally pubs, restaurants and shops will welcome the benefits of a busier trading period, but they need to act now to make the most of it. They can start with working capital, checking it is robust enough to manage the upcoming peaks in demand. For some there might be benefit in accessing short-term finance needs to ensure cash flow is flexible ahead of time. Businesses will also need to be resourced well enough with staff to cover the potential increased demand from customers, while bearing in mind the importance of building in flexibility for their teams to spend time with friends and family.”

Three top tips for businesses ahead of Bank holiday season

  1. Fine tune your forecasting: Forecasting helps to determine whether there is sufficient cash in the business to cover the potential increase in demand. As a good first step, talk to customers to understand their plans so you know what to expect, and if you have time, review the trading around last year’s Jubilee to see how your working capital position may need to change to accommodate an extra Bank holiday.
  2. Control your cash and costs: A well-managed cashflow is key and as well as managing costs it’s worth considering whether it’s possible to defer them to preserve resources in the short term. You can also explore different financing options to change the profile of any essential payments, helping to ease immediate cash burdens and bolster flexibility. Invoice Finance, for example, allows companies to access up to 90 per cent of the value of an invoice within 24 hours of it being issued, guaranteeing that cash will be available even if payments from customers are delayed.
  3. Check in with your supply chain: Most businesses have experienced the frustration of supply chain disruptions in recent years, and checking in with your key suppliers ahead of the busy period can help offset any potential problems. It can be tempting to stockpile to help trade, but this can have significant working capital implications by tying-up cash in inventory. Maintaining regular communications with your suppliers and investing the time in understanding every part of your supply chain will help inform good inventory management – ultimately helping you to avoid tying-up more cash than you need to in stock, while ensuring your business can still run smoothly and capitalise upon any increase in demand.
Business News Wales