How Do the Holidays Affect Businesses?
The holidays are a busy time of year. Many people spend hours shopping for the perfect gifts for their loved ones, putting up holiday decorations, and going to holiday parties with friends and family. Your schedule might be packed, but if you’re a small business owner, it’s crucial that you find time to prepare your business for the hectic holidays.
How can the holidays impact your business? What can you do to ensure you and your business are prepared for the busy weeks ahead? Here’s what you need to know:
How Will Your Business Be Impacted By the Holidays?
The holiday season can impact your business in a number of ways, including:
- Revenue Changes
- Marketing Adjustments
- Intense Competition
The holidays can impact consumer behavior, which may affect your business’s revenue. The holiday season is the busiest time of year for some businesses. These businesses should prepare for an increase in foot traffic, sales, and demand in the weeks ahead. This means making sure you are adequately staffed and your shelves are fully stocked so you can maximize sales.
Other businesses may experience the exact opposite. If your business tends to slow down around the holidays, you need to prepare for a temporary drop in revenue. Spend this time getting your business ready for after the holidays, when sales should slowly return to normal.
You may need to make adjustments to your marketing plan as part of your holiday preparations.
The adjustments you will need to make will vary on a case-by-case basis. For example, if your business slows down around the holidays, you may want to cut back on marketing expenses until the holidays are over. If customers don’t need your goods or services around the holidays, spending money on marketing them may not be a good idea.
On the other hand, if your business picks up during the holidays, you may want to increase your marketing investment to generate as much revenue as possible. Be sure to promote deals, discounts, and last minute gift ideas for shoppers during this busy time of year.
Small business owners should also be prepared to deal with intense competition during the holiday seasons. If your business tends to pick up during the holidays, chances are that your competitors’ businesses will pick up around the same time. This means you and your competitors will all be fighting for the same shoppers’ attention for the next few months.
Take the time to figure out what sets your business apart from your competitors before the holidays begin. Then, think about how you can communicate this to your target audience. It’s important for your target audience to understand why they should choose your business over your competitors.
Which Industries Benefit From the Holiday Season?
Remember, some businesses may benefit from the holiday season, whereas others may experience a decline in revenue until the holidays are over. If you’re wondering where your business stands, here’s a look at some of the industries that benefit the most from the holidays:
- Retail: The vast majority of retailers benefit from the hectic holiday season. This is because shoppers tend to spend more on clothing, electronics, toys, and other goods this time of year.
- Grocery stores: Part of hosting a holiday party involves buying and preparing food and drinks for your guests. For this reason, grocery stores tend to benefit greatly from the holiday season.
- Beauty services: Hair salons, spas, nail salons, and other beauty services are typically in greater demand during the holidays. Because everyone wants to look their best, this industry tends to see a significant increase in revenue.
- Charities: The holidays are a time to give back, so charities generally see an increase in donations at the end of the year. More people may sign up to volunteer for non-profit organizations during the holidays, too.
How to Prepare Your Small Business for the Holiday Season
Now you should have a better idea of what to expect this holiday season. The next step is figuring out how to prepare your small business for what’s ahead. Here’s what to do:
- Create employees’ schedules in advance. Make sure you have enough help by creating your employees’ schedule before the holidays begin. Don’t forget to account for any time that your employees have requested off.
- Consider adjusting your hours. If you want to maximize revenue, you may want to consider keeping your business open for an additional few hours in the weeks leading up to the holidays.
- Run deals and discounts. Shoppers tend to search for the best deal possible during the holidays, so now is a great time to run deals and discounts on your goods and services.
Keep these tips handy to guide your small business through the chaos of another holiday season.