Surviving the Festive Season
By Keywood Group
The Christmas period can be a double-edged sword for many businesses. While it often brings increased sales, festive bonuses, and seasonal opportunities, it can also exacerbate financial pressures — especially for companies already facing cashflow challenges. Rising costs, late payments, and high operational expenses can turn what should be a profitable season into a risky one.
At Keywood Group, we help directors navigate these challenges, offering practical advice and solutions to protect their businesses during the festive period.
Why Christmas Can Be Challenging for Struggling Businesses
Even in a strong economy, the festive period introduces unique pressures:
Increased Operational Costs
- Seasonal staff, additional stock, energy bills, and marketing expenses can strain cashflow.
Delayed Payments from Customers
- Many clients settle invoices late due to year-end deadlines or holidays, affecting working capital.
Holiday-Driven Spending Pressures
- Directors may feel pressured to spend on bonuses, gifts, or festive events, further stressing limited resources.
Seasonal Overconfidence
- A spike in sales or holiday orders can create a false sense of security, leading to overspending or delayed action on financial issues.
How Keywood Group Can Help During the Festive Season
- Cashflow Planning
We help directors forecast cashflow over the holiday period, ensuring enough liquidity to cover essential expenses while avoiding unnecessary risk.
- Cost Management Strategies
Our team identifies areas to reduce costs without harming operations, from temporary staffing solutions to energy efficiency measures.
- Early Warning Analysis
We review financial statements and flag potential insolvency risks before the festive season becomes a crisis.
- Restructuring Advice
If your company is already under pressure, we explore options like CVAs, administration, or pre-pack arrangements to stabilise your business and protect value.
- Creditor Negotiation
We liaise with suppliers, landlords, and lenders to defer payments or restructure debt, giving businesses breathing space during the holiday period.
Practical Tips for Directors This Christmas
- Review cashflow weekly: Don’t assume sales will cover all expenses.
- Prioritise payments: Cover essential costs first, like staff wages and supplier commitments.
- Avoid unnecessary borrowing: Short-term loans can create long-term problems.
- Keep accurate records: Document all decisions and correspondence with creditors.
- Seek advice early: Don’t wait until January to address financial concerns.
Final Thoughts
The festive season is a critical period for struggling businesses. With careful planning, professional guidance, and proactive measures, directors can protect their companies, safeguard employees, and enter the new year with a stronger foundation.
At Keywood Group, we specialise in helping businesses navigate financial distress with practical, confidential, and expert advice — even during the busiest time of the year. If your business is facing financial pressure this Christmas, contact Keywood Group today for a confidential consultation and discover your options.
