A guide to the Christmas period for small businesses

A guide to the Christmas period for small businesses

Christmas is a very busy time of year for small businesses and can have a huge impact on yearly revenue making it a highly anticipated time for business owners.

It is so busy that companies actually expect to make two-thirds of their annual profits during the festive season even amid economic uncertainty.

According to a recent survey by Intuit QuickBooks, firms are predicted to generate more revenue than in 2021, with 75 per cent expected increased activity.

The optimism has been boosted by 67 per cent of consumers saying they plan to have a Christmas party by spending an average budget of £671.

Retailers, in particular, will be in high demand as everyone rushes to get their shopping out of the way.

Below is some advice for retailers during this busy period.

Shopping small

From a consumer’s point of view, the survey proves that small businesses are the favoured place to shop at Christmas.

On average, they plan to spend £250 – equivalent to 37 per cent of their total budget.

Online revenue accounts for 68 per cent (UK) of these small businesses’ total annual revenue and over three quarters (79 per cent) say online sales will be more important during the 2022 festive season than last year.

Gift cards

Gift cards come into play in a big way at Christmas when people cannot decide what presents to buy.

Digital gift cards, otherwise referred to as e-vouchers, can either be delivered instantly via email or SMS or at a specified date.

Pre-Christmas discounts

Everyone loves a bargain, particularly at Christmas when the budget is often tight.

Adjusting your pricing for a short period of time can help to boost sales and your income.

But don’t rely on sales to carry your business through, keeping prices consistent could be more helpful for your business.

It is important to find out what strategy works best for you and your customers.

Gift bundles

Gift sets create extra value by bundling together products which complement each other, which can increase your average order value.

Offer free delivery

Delivery charges can be expensive, so diminishing these is a great incentive to achieve more sales.

It might also be worth considering overnight delivery services to make sure your customers have their products in time for the big day.

Minimise staff pressure

Christmas is stressful for every employee in your company, so be sure to consider how they are getting on.

Staff may find themselves working longer hours and covering for their colleagues who are taking annual leave.

To keep your business running smoothly and make sure that your employees are happy in their roles, it is essential to check in regularly and boost morale where possible, especially during the festive season.

For advice during this busy time, contact us.