Does Your SME Close During the Festive Season? Pros & Cons of Closing in December - Outsourced Finance

With the Christmas holiday approaching, it is safe to say that most employees look forward to having some time off at the end of the year. On the other hand, employers are faced with a competitive business environment and tempted to stay open during holidays. While there are disadvantages of closing your business during the December holiday, there are also benefits of shutting down the business during the holiday.

 

Pros of Closing Your Business in December

 

1. Improving Productivity

People who take a break from work are more efficient than those who do not. During holidays, most employees are unproductive because they wish to spend more time with their families when they are also on holiday.

 

2. Saving on Overhead Costs

Closing your office in December saves on expenses such as lighting, or heating. If you decide to stay open, you would be lighting and heating a partially empty workplace since some of your employees will be on holiday.

 

3. Improving Employee’s Morale

The toughest time of the year to work is in the holidays. Vacations not only benefit the workers, but also the business. When you allow your employees to refresh and unwind, they return to work happy, excited and energized with solutions to old problems and new ideas to improve the growth of the business.

 

4. Letting Employees Know It Is OK to Rest

Many people believe that to achieve career goals and success, they need to work hard without taking breaks. Therefore, setting an example as the boss can make all the difference. If your employees see you always working without a break, they think that is what is required to get ahead. Let them know it is fine to celebrate holidays and spend time with your loved ones rather than focusing on the job alone.

 

5. Preventing Burnout

Closing your business during the festive season can prevent employees from burn out due to long hours of working and taking care of their families. This ensures that the overall health of the employees is taken care of.

 

Cons of Closing the Business

 

1. Loss of Revenue

Small businesses can face financial pressures if they shut down during the December holiday. Other businesses may be closed, and customers may be inactive, but there is still a risk of decreased sales, production, and the overall momentum in the business that could have an impact on revenue.

 

2. Missed Opportunities

A customer could be in desperate need of a product or service you offer during the holiday.  As such, you miss an opportunity of acquiring a new customer who might have been a loyal customer.

 

3. No Extra Time

If you shut down the business during the festive season, workers lack enough time to secure customs and complete pending projects ahead of the new year.

 

Bottom Line

While closing the business over Christmas undoubtedly has its pros in specific areas, the impact it could have on the missed opportunities and revenue generated may offset the financial success the business may achieve in the short term.

Xavier Olivier


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