Makonde Mafadza who runs the Backyard Kitchen and Car Wash in Philip Nel Park, Pretoria West, is already preparing for the slow and difficult month of January.
Mafadza said the team is adjusting prices and planning promotions to attract customers during the quieter period.
“January is usually slow, so we’re planning ahead,” Mafadza said. “On Wednesdays, vehicles in the standard category are washed for R60 instead of the usual R90, and from Thursday, larger vehicles receive a R30 discount, bringing the price back to R90. We’re also discussing combo deals with the food sold on the premises, and because we operate close to Tshwane University of Technology, we’re planning discounts for students and staff to help keep customer numbers steady.”
Street food vendors, who depend almost entirely on daily cash flow, are also adjusting their operations in anticipation of reduced demand.
Vhutshilo Mudau, a vendor trading at Zwikwengani in Limpopo, said preparation is key to avoiding losses in January.
“After December, people try to save as much as possible,” Mudau said. “I plan by buying smaller quantities of stock and focusing on affordable items. I also adjust my working hours so that I don’t waste food or money. Planning ahead helps me manage costs when sales slow down.”
For service-based SMEs linked to events, the January period brings a shift in activity rather than a complete decline.
Kagiso Ranyawa, founder of Tshimologo Hygiene Solutions, said December is typically the business’s busiest period due to events and year-end functions, while January focuses more on planning and forward bookings.
“Sales volumes are lower in January, but the conversations are more structured,” Kagiso said. “We used December to close bookings, collect outstanding payments and review our systems so that we enter the new year prepared rather than reactive.”
Kagiso added that as a first-year business owner, managing cash flow during slower months remains a key challenge, but the quieter period also allows time to strengthen operations and plan for future growth.
Many SMEs use December to reassess stock levels, adjust operations and plan targeted promotions aimed at sustaining cash flow in the new year. Those that prepare early are better positioned to absorb the January slowdown and maintain financial stability.
While January remains one of the most challenging months for small businesses, careful planning, cost control and realistic expectations can help SMEs navigate the post-festive period and start the year on firmer footing.
Chartered accountants at A4G LLP have previously advised that SMEs should prepare for January by closely managing cash flow, limiting non-essential spending, reducing excess stock, and ensuring outstanding payments are collected before the festive period ends.
