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Posted by Admin | November 21, 2016

  Opening a business in the Christmas season



Christmas is only a few weeks away and entrepreneurs are already starting to feel the season’s arrival as everyone is getting busy buying gifts, checking people off their long list. Uncles and aunts are either saving up or looking for a good hiding place for visit of their nephews and nieces. We are nearing what is for most businesses the biggest and most profitable season of the year.
                Entrepreneurs are not one to ignore the effects of the general increase in purchases these coming weeks. Sellers of novelty items know that they are about to rake in a good amount of profits. Grocery stores are preparing their Christmas freebies to encourage bulk sales and toy stores are starting to watch their inventories fly off the shelves. Overall, it’s a great time for sellers, which leads us to the question “is it good to start your own business this Christmas?” After all, if existing businesses enjoy these holiday rewards, why not the new businesses as well? It’s high time to sell Christmas decorations and gift doodads that even people who are not accustomed to selling will earn, right?
                Before you rush to put up a business this Christmas, here are a few things to take note of in starting your business this December:
                Planning. First, what do you sell? Do you sell Christmas decorations? Food? Toys? Containers? If you do decide on toys, are you familiar with the trending cartoon characters? What do kids play nowadays? What used to be popular before is likely be already passé today. If you decide on food, what food sells more during this season? Think of snacks and desserts like donuts, cupcakes, and viands that are staple to Christmas Eve celebrations. You can even try selling grilled whole chicken if there are no sellers within your area.
                 Marketing competition. How sure are you about your marketing capabilities? Christmas is also the time when companies, big and small, are marketing with all the effort they can exert to grab customers’ attention, and become the brand of choice for their category. Selling a sought-after product won’t be of any help if your target customers don’t even know your business exists.
                 Offering different packages for your products can help. For example, you can sell an item with free gift-wrapping service and delivery. You can offer “his and hers” for the price of one. Think about how people decide in looking for gifts. Christmas Eve celebrations. You can even try selling grilled whole chicken if there are no sellers within your area. Marketing competition. How sure are you about your marketing capabilities? Christmas is also the time when companies, big and small, are marketing with all the effort they can exert to grab customers’ attention, and become the brand of choice for their category. Selling a sought-after product won’t be of any help if your target customers don’t even know your business exists. Offering different packages for your products can help. For example, you can sell an item with free gift-wrapping service and delivery. You can offer “his and hers” for the price of one. Think about how people decide in looking for gifts.
                Inventory turnover. If you marketed your product properly, priced competitively, and sold aggressively, you are likely to have a fine inventory turnover. This means that you are selling your stocks rapidly. Now this benefit comes with a challenge. With the rate of turnover being fast, you have to worry about replenishing your inventory before it completely runs out. To do this, you need to check how fast your inventory is being consumed and how long it would take for you to get more stocks. This is not an easy task because demand may change abruptly and you may be left with unsold stock.                 Forecasting. A critical element that you have to take note of is forecasting the market trends and thinking about the company’s strategic direction. As new company, do not expect that your business will do as good the following months as it would be this December, because people have more disposable income during this month due to 13th month and bonuses. Come January, most people no longer have surplus cash and there is less motivation to spend. Focus on spending would shift back to basic needs. This is the dilemma that those who will start their businesses for Christmas would be facing. Today, you are faced with the alluring festive market, but take note that it will soon end, and it won’t be for another 11 months before you hit the same trend – and that is if there won’t be a new trend by next year. Be prepared in adjusting your focus once Christmas ends. Clear out your inventory to make way for regular products that you can sell throughout the rest of the year.
                Opening a business during the Christmas season is extremely challenging but the rewards of big sales to be made make it attractive. Still I would advise if you do it a few months before so that your operations are already running smoothly. The first impression is crucial and if too many people’s first experience with your company is unsatisfactory, then it is unlikely that they would come back and this would put your long-term prospects in serious doubt.
 
 
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Ruben Anlacan Jr. is the president and
CEO of BusinessCoach, Inc