Many businesses find the Christmas period and the weeks just after Christmas a low-income period.
One of the options for many businesses is to take is to close for an extended period during the Christmas and New Year break.
Often it’s the only time that some small business owners can take time off.
Although retail usually takes a dive after the Christmas spendathon, retail shops also prefer to stay open despite the drop in trade. This is mostly about maintaining continuity and presence as competition can be fierce and losing trade is just not a viable option.
But many other businesses such as manufacturing, building and some service industries find it an ideal time to down tools and close.
The Fair Work Ombudsman says that an employer can direct an employee to take annual leave, but only when an award or registered agreement allows it and the requirement is reasonable.
If you employ staff, you should also give them at least one months’ notice that you will be closing and that they must take leave over the closure period.
The other consideration for businesses who close, is cash flow. Planning for an extended closure is critical. In many cases your cash flow will be dramatically reduced, especially if your business relies on employees to generate direct income.
Making sure you keep cash in reserve leading up to the end of the year will provide the buffer you need to get through this period and ready to go in the New Year.
You also need to have plan in place to quickly ramp up income once you and your staff get back to work.
Let us know if you believe you may experience cash flow issues post the Christmas New Year break, and we can help you develop a plan to ride it out.