Is money tight in your business during the holiday season? Holiday gifts for clients, employee bonuses, tips for service providers, holiday parties — that’s all extra spending. On top of that, if you are in retail or manufacturing, you may have needed to stock up on inventory and extra materials to meet customer demands. You also may be making capital purchases in order to maximize deductions in this tax year.
Some businesses, though, see year-end spending as an investment in their businesses. In fact, 40 percent of small business owners are planning for an uptick in business performance this holiday season compared to last year according to a recent survey by Ink from Chase.
But you don’t have to spend insane amounts of money in order to reap the benefits of the holiday season. Here are a few simple tips you can use to save money on holiday business expenses.
1. Set an Early Budget for Business Gifts — and Stick With It
Gifts are a controllable expense. Start by setting your overall budget for customer gifts and cash tips for service providers. Overspending often results from not setting a budget and instead leaving the amounts open-ended.
Some recipients even have limits to the value of gifts they can accept, so do some research. Remember that business gifts are often about the gesture more than how much you spend.
2. Shop Early to Save Money
Be sure to plan out business gifts early enough so that you can shop creatively and take advantage of sales. Nothing kills a budget faster than last-minute desperation spending and rush shipping charges.
Also, spread out your expenses as much as possible by buying some gifts early and some later.
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