#ICYMI: Tips for SMEs looking for returns this festive season

In a year that has seen minimal economic growth, many small and medium-sized businesses will have to make the most of the festive season to build cash reserves for the year ahead.

This year has proven to be testing for many entrepreneurs; characterised by low growth, rising petrol prices, a drought in parts of the country and a negatively adjusted rating in investment grades. These factors have all contributed to a more strained consumer.

Mags Ponnan, head of customer value propositions at FNB Business, believes that small and medium-sized businesses have to ‘box smart’ to stay ahead this festive season.

“Consumer spending will not go away, however, people may simply spend more consciously than in previous years. To stay ahead, entrepreneurs must go into the festive season with a clear plan,” Ponnan said.

He shared tips on how businesses can be best positioned for a profitable festive season:

• Have a clear strategy ahead of the festive season

Ensure your stock levels are considered, placed in advance, and arrange adequate storage capacity. Suppliers may also close for the season so a clear plan will ensure that you maintain correct stock levels.

• Make use of communications platforms to let consumers know your season specials

SMEs do not have to spend an arm and leg to reach the consumer. You can make effective use of social media platforms to reach consumers with your specials for the season. This not only allows a cost-effective form of communication, it also enables a two-way conversation where the SME is able to receive feedback from consumers on what they think of the specials.

• Keep your outlet open longer

Many consumers are on leave, they will, therefore, be spending longer hours in stores. Being open for longer extends the possibility of a higher footfall into your store this season.

• You must have an online presence

More and more consumers search for offers online, they do product comparisons, endorsements and even purchase online. To not be available online in the digital age is to impede the extent of possible sales.

“SMEs must remember that the competition for a share of consumers’ spending power intensifies in tough times. Businesses that have prepared long in advance are bound to win in the festive season,” concluded Ponnan.

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