How we prepare for Christmas

WHO: Nicky Edmunds, owner of Insideout

WHAT: Devon-based home furnishings and gift shop

THE ISSUE: Planning ahead to maximise sales at Christmas

THE SOLUTION: "Insideout opened its first store in Tavistock in March 2004 - we now have three stores in Devon. We sell a range of gifts and homewares, including jewellery and decorative items such as frames, vases and candelabras. We also sell wrapping paper and cards.

"We make up to 40 per cent of our annual revenue from October to December. Christmas is absolutely critical to us, but we spend the whole year building up our reputation and credibility, so people want to visit us for their Christmas shopping.

"Planning for Christmas starts as soon as the previous Christmas is over. The decorations and Christmas cards we sell have to be ordered in the first six months of the year, because our suppliers make these products to order.

"We also give some products a trial run through the year, to get an idea of whether they will be popular at Christmas. We find that gift items sell really well, so we stock more of these 'pick-up items' and slightly less of our home wares. We also concentrate on affordable products - people will have lots of gifts to buy and a budget to meet, so it's important to offer them something that comes in at under £10 or £20.

"We don't normally trade on Sundays, but we open the store every Sunday in December. In addition to our core staff, we have a couple of university students who will help us meet demand and our part-time employees will often work extra hours as well. We need to deliver a high standard of service no matter how busy we are.

"In the lead-up to Christmas, we pay attention to displays by re-arranging stock and showcasing focal products - usually smaller gift items. We also create a Christmas theme in our windows to entice customers into the shop."

LESSONS LEARNED: "One of the hardest things to get right is stock ordering. You might be tempted to order lots of something because you're worried it might sell out. But you don't want to be on the other side of Christmas with lots of stock to sell at a discount. Use your experience to ascertain what products will sell successfully. Until you have the experience, err on the side of caution.

"Also, remember that suppliers are very busy delivering in December, which is when you might need a lot of topping up. So, pre-plan to avoid Christmas post delays."