Prepare Your Small Business for the Holiday Season

Ask a small business owner what the holidays mean, and the answer often includes both excitement and pressure. The season brings more customers through the door, but it also demands an even heavier workload that can include hiring and training additional personnel, keeping shelves stocked, managing promotions, and maintaining excellent customer service.

Here's the good news if you're a small business owner: National surveys show that shoppers will actively be looking for ways to support you during the holidays. In a SurePayroll® By Paychex survey of more than 2,000 Americans, 84% of respondents said small businesses were vital to their communities.¹

Survey participants also said that neighborhood businesses stand out by offering higher-quality items, more attentive employees, and deeper community support than big-box retailers.

When you pair shoppers’ preference for local businesses with the enormous amount of holiday spending that takes place nationwide, the potential for small business success is even greater. During the 2024 Thanksgiving holiday weekend alone, nearly 197 million U.S. consumers shopped, with Black Friday, Small Business Saturday, and Cyber Monday leading the charge, according to a press release from the National Retail Federation (NRF).  

With an opportunity this big, preparation is key. Creating a clear plan, whether it’s refining your marketing, strengthening customer service, or making sure inventory is ready, will help your business stand out, attract more customers, and make the most of the busiest shopping months of the year.

Key Shopping Days to Plan Around

The holiday season brings several high-profile shopping days that can make a big difference for small businesses. By putting the right small business strategies in place, you can capture some of that momentum.

• Black Friday: Traditionally known for doorbuster deals and in-store crowds, Black Friday still matters, even in an era of online shopping. In 2024, more than 81.7 million consumers shopped in stores on Black Friday, according to the NRF. Small businesses can stand out by offering unique bundles, personalized service, or experiences big-box stores can’t match.

• Small Business Saturday: This is your day. Created to spotlight local businesses, Small Business Saturday has become a tradition for millions of Americans and is often considered one of the most important small business holidays of the year. The SurePayroll survey found that 78% of Saturday shoppers specifically cited Small Business Saturday as their reason for shopping that day. This is a great time to strengthen customer relationships by offering loyalty sign-up bonuses or thanking shoppers with a small gift. You can also make the day memorable by hosting live music, showcasing exclusive products, or planning a special event.

• Cyber Monday: Once focused on e-commerce giants, Cyber Monday now represents a huge opportunity for small businesses with online stores. In 2024, 64.4 million consumers shopped online on Cyber Monday, according to the NRF. Make sure your website is mobile-friendly, easy to navigate, and ready for an uptick in traffic. Even small businesses without full e-commerce platforms can participate by offering online gift cards, digital promotions, or limited-time offers through social media.

2024 Holiday Shopping by the Numbers

• 197 million consumers shopped over the Thanksgiving holiday weekend.

• 81.7 million shopped in stores on Black Friday.

• 87.3 million shopped online overall.

• 64.4 million shopped online on Cyber Monday.

• 86% of shoppers bought gifts, spending an average of $235.

(Source: NRF press release)

Plan Early for Holiday Success

The most successful holiday seasons don’t happen by chance; they’re the result of careful, early planning. Many consumers begin shopping well before Thanksgiving, with some starting as early as October. Here are some guidelines to consider.

• Start your planning by deciding what you want the season to look like for your business. Are you aiming to boost online sales, increase foot traffic, or strengthen customer loyalty? Write down your big-picture goals along with ideas for supporting them. For example, a boutique might focus on attracting new customers with a holiday open house, while a service provider could prioritize building brand awareness through community events. Once your goals are clear, outline the tasks that will bring those ideas to life.

• Set your timeline now. Map out when promotions will launch, when inventory needs to be in place, and when staff schedules should be finalized. Starting early allows you to coordinate across marketing, operations, and customer service so nothing falls through the cracks during peak weeks.

• Test ideas before the rush. Early planning gives you time to experiment with messaging, promotions, and channels. For example, try a limited-time email campaign or a small social media promotion in October to see what resonates. The insights you gain will help you refine your approach before the busiest shopping days arrive.

• Prepare your team. Build time into your early planning to train staff on standard operating procedures and customer service best practices. Role-playing common holiday scenarios, such as handling gift returns or managing long lines, can help your team feel confident and keep service levels high even during peak shopping days.

Best Practices for Holiday Marketing

A significant portion of small business holiday preparation should focus on your marketing strategy. It can dramatically raise your visibility at a time when shoppers are looking for ideas and inspiration, and, when done well, it creates emotional connections that influence where people choose to spend.

The Small Business Administration (SBA) notes that effective holiday campaigns help local businesses stand out by offering personal touches and community ties, such as partnering with local charities or hosting neighborhood events, that larger companies often can’t match.

Holiday marketing offers big opportunities, but it works best when it’s intentional. These best practices can help you shape a strategy that highlights your strengths and resonates with your customers.

• Set clear goals for your marketing. As mentioned, one of the first steps in holiday planning is mapping out your big-picture objectives. You'll also need to decide what role your holiday marketing ideas could play in achieving them. For example, if boosting sales is the goal, your efforts might center on time-sensitive promotions. If building customer loyalty is the priority, you could focus on rewards programs or special thank-you offers for repeat customers.

• Know your customers. Your customers’ priorities during the holidays may look different than the rest of the year. Many shoppers are focused on finding gifts, saving time, and getting value for their money. You can use past sales data, customer surveys, or informal feedback to shape your offers and messaging.

• Use multiple marketing channels. Don’t rely on one method to reach your audience. Combine social media posts, targeted email campaigns, in-store signage, and local advertising to reinforce your message.  

• Align with the calendar. Tie your strategy to key shopping days like Black Friday, Small Business Saturday, and Cyber Monday, but also plan for the weeks in between. Smaller touchpoints, such as a mid-December reminder email or a last-minute gift guide on social media, can keep your brand top-of-mind all season long.

Holiday Marketing Campaigns That Work

Once your goals are in place, it’s time to put them into action with targeted holiday campaigns. Examples include:

Offer Special Holiday Deals and Discounts

Holiday shoppers are actively looking for value, and a well-timed promotion can make the difference between browsing and buying. Think about offering limited-time offers, bundle deals, or free shipping to encourage quick decisions.  

Create Easy-to-Use Gift Guides

The holidays are busy, and shoppers appreciate anything that saves them time. Online guides organized by category, such as "Gifts Under $50," "For the Host," or "For Kids," help customers quickly find what they need while showcasing more of your inventory. Gift guides also work well as content for newsletters, blog posts, or in-store handouts.

Partner with Other Local Businesses

Collaboration is a powerful way to expand your reach during the holidays. Team up with other area businesses to cross-promote each other’s products on social media or host a joint shopping event. Not only can these partnerships introduce your business to new customers, but they can also reinforce the sense of community that shoppers are eager to support.

Tie Promotions to Community Giving

Think about donating a portion of your sales to a local charity, organizing a toy or food drive, or sponsoring a community event. According to the SurePayroll survey, many consumers believe small businesses contribute more to their communities than large retailers, and showcasing your efforts can build even stronger customer loyalty.

Holiday Strategies for Service-Based Small Businesses

Your small business may not sell products, but that doesn’t mean you should sit out the holiday season. Service-based businesses, from salons and spas to consultants, writers, and fitness trainers, can also benefit from the seasonal surge in spending and community spirit.

Offer Seasonal Promotions

Package your services in ways that make sense as holiday gifts. Examples could include discounted bundles, gift certificates, or limited-time offerings tailored for the season. Even small gestures like a free add-on service in December could help generate buzz.

Partner with Complementary Businesses

Teaming up with local retailers or other service providers can be a win-win. A yoga studio might pair with a juice bar for a joint promotion, or a consultant might co-host a holiday networking event with a local coworking space. These partnerships expand your reach and reinforce your ties to the community.

Give Back to the Community

Service-based businesses can host a charity drive, donate a portion of December revenue to a cause, or volunteer staff time. Highlighting these efforts in your marketing shows customers that supporting you means supporting the community.

Share Seasonal Content

Even if you don’t offer tangible products, you can position yourself as a resource. Publish a holiday-themed blog post, social media tips, or a checklist that connects your expertise to seasonal needs (like financial planning before year-end, event-planning tips, or stress-management advice).

Stay Stocked and Ready

If you're a retailer, strong marketing won’t make an impact if you run out of your best-selling items or can’t fulfill orders quickly. You'll want to prepare your inventory and supply chain ahead of the holiday rush so you can meet demand and keep customers happy.  

Review Last Year’s Sales Data

Look back at your past holiday performance to spot patterns. Which products sold out fastest? Which promotions drove the most orders? Use those insights to guide your purchasing decisions and avoid shortages and excess stock.

Communicate with Suppliers Early

Holiday demand doesn’t just affect you; it impacts your suppliers, too. Confirm timelines now and place orders sooner rather than later to minimize the effects of shipping delays. If possible, identify backup vendors for key products.

Use Tools to Track Inventory in Real Time

Your small business might benefit from basic inventory management tools. Software that alerts you to low stock levels or automates reordering can help reduce errors and free you up to focus on customers during busy periods.

Balance Popular Items with Giftable Add-Ons

Stock up on your proven best-sellers, but don’t forget lower-cost “add-on” items like stocking stuffers or impulse buys at checkout. These smaller products can boost average order value and help keep shelves full even if larger items sell out.

Finish Strong This Holiday Season

Remember, as a small business, you already have the benefit of a consumer base that’s interested in supporting you. Preparing for the season is one of the most effective ways you can capitalize on that sentiment — and on the trillions of dollars in holiday spending that will be taking place nationwide.

Simplifying Your Success

While you’re taking care of customers, SurePayroll can help take care of your business with tools that can make payroll and tax management easier, giving you more time to focus on growth.

Learn how you can simplify payroll at www.surepayroll.com.

¹ _{SurePayroll survey of 2,003 general population Americans conducted by OnePoll.}