Forecasting for the Christmas period is essential for a successful time of year when sales might be down.
Planning for Christmas as a PT is essential – you already know money isn’t 100% guaranteed every month of the year and Christmas is no different. With many of us having to buy presents and other items, we may lose track of our training as go for that pint after work or have that extra mince pie as we go ‘ah well, it’s Christmas’. Look to supplement your cash income over Christmas, or place projects on hold as you want to ensure you stay in the green in time for the January boom!
Break your in-goings and out-goings into categories, it will make it easier to reflect payment patterns. For example, if you pay your insurance annually, your phone bill monthly and your rent quarterly, split them up so you can see how much you will owe and when. That way you know when you will have a large outgoing and you should hold back on any business projects.
So now you know what you have each month, how much will you have in December? If you think you may be struggling, try push projects out which may make you quick cash. Look at potentially creating a recipe book, or exercise PDFs which your clients can buy in the Christmas period. If you’re in need of buying new equipment or anything for the business, could you make deals with suppliers? Or do you need to encourage those clients who pay late that they need to pay up, quickly.
If you are a UK trader, don’t forget your first on account payment will be due on January 31st so maybe look at cash flowing up until February to ensure you have adequate funds.