5 ways your business can make the most of Chinese New Year
If your SME does a significant amount of business in Asia, the Chinese New Year period could be a great time to give your business a boost. Here are our five top tips to make the most of the festive season.
1. Stock up for Chinese New Year
You’ll feel the effects of Chinese New Year long before it actually arrives. Chances are, customers will still be buying and there is a real need to ensure you have sufficient stocks to tide you through the holiday period. You’ll find that Chinese suppliers and ports remain closed for quite a stretch, so be sure to take note of when you need to place any last orders before they do. Meanwhile, it’s advisable to step up quality checks during the pre-New Year rush to avoid any lapses in quality.
2. Get your shipments sorted
Every Chinese New Year, key ports and logistics services will either be unavailable or be operating at limited capacity. This could mean serious bottlenecks on the shipping and logistics fronts – so be sure to ensure you book your shipments well in advance. If possible, avoid shipping altogether during this time as the cost of transporting goods during this period is likely to be much higher than usual.
3. Settle all payments in advance
The Chinese traditionally don’t like owing others money over the New Year – it is believed to result in them owing others money throughout the rest of the year. On the business front, it’s probably wise to settle all your payments way in advance too – during the holiday period, payments to and from China and Hong Kong will not be processed. Making plans in advance – speaking with your suppliers and ensuring your payments are made ahead of time – can help you avoid unpleasant situations such as late payment fees and potential disputes. DBS provides convenient services such as DBS PayNow Corporate and DBS MAX that make sending and collecting payments a breeze.
4. Rethink business travel to China
If you do a significant amount of business with Chinese partners, Chinese New Year probably isn’t the best time to make an in-person visit. Most businesses close for the New Year, and you probably won’t get much done by way of business meetings. Instead, consider reaching out with greetings and gifts, which will go a long way in improving relationships with your business associates who celebrate Chinese New Year.
5. Make plans for after Chinese New Year
The post-Chinese New Year period is a great time to regroup and think about your plans for the rest of the year. If expansion is on the cards, DBS offers an array of products that can make life easier for SME owners like you – whether it’s a business bank account for your new venture, a commercial property loan for your new office space, a working capital loan for day-to-day business expenses, or even a microloan for the unexpected. Apply online, or reach out to one of our helpful representatives who will be happy to help.
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