Top tips for small businesses this Christmas and new year

As the end of year approaches, small businesses should make plans for how they will navigate and make the most of the festive rush. For some businesses this means winding down for the year, but for others this time of year can present unique challenges and opportunities. 

Here are some things to consider:  

Financial planning 

• Budget for seasonal expenses: Anticipate higher costs for inventory, staff, and marketing. Set a budget for these expenses and consider your buffers should any unexpected expenses arise. 
• Cash flow management: Ensure you have sufficient funds to cover operational costs during slower January and February periods and communicate with suppliers and customers to confirm payment schedules over any shut down periods. 
• Offer flexible payment options: Prepare alternative payment methods such as payID, mobile payment apps or cash handling procedures to avoid disruptions in the event of payment system outages. 

• Tax returns during holiday periods: Be aware of any tax obligations that may fall due during the Christmas and new year period. Check the ATO and Revenue NSW's website for confirmation of important dates for activity statements or payroll tax. 

Workforce management 

• Plan rosters in advance: Ensure adequate staffing during peak periods and communicate holiday schedules early. 
• Temporary staff training: If hiring seasonal staff, ensure they are trained in customer service, product knowledge and safety protocols. 
• Fair work compliance: Check holiday pay entitlements and ensure you meet legal obligations under NSW workplace laws. 

Legal and compliance preparation 

• Business disruption planning: Develop a business continuity plan for handling unexpected events, such as supply chain issues or natural disasters. 
• Dispute resolution: Be aware of support options and the Commission’s mediation services to help resolve any commercial disputes, particularly around leases and supplier issues that might arise, quickly. 
• Trading hours compliance: Confirm public holiday trading restrictions and communicate hours to customers. 

• Consumer Laws: During Christmas there is an increase in returns or refunds. Be aware of consumer laws around guarantees and warranties and the responsibilities of sellers. More information can be found at NSW Fair Trading. 

• WHS and consumption of alcohol at events: If you’re selling or supplying alcohol at a work Christmas party, you may need to apply for a liquor licence. Further information can be found at Service NSW. 

Digital readiness 

• Website and e-commerce optimisation: Speak with your providers to ensure your website can handle increased traffic and verify that online ordering and payment systems function smoothly.  
• Cybersecurity: Protect against scams and cyber threats, particularly targeting small businesses during busy periods.