Six tips for small business success during the holiday rush

December is an exciting month for small businesses. It offers great sales potential, increased profits, and a customer base full of festive cheer. However, without proper organisation, the holiday rush can quickly become stressful. If poorly managed, it can hurt both your sales and reputation.

That’s why we’ve put together these six tips to help you stay ahead, trade successfully, and maximise your profits this holiday season.

1. Plan ahead

Christmas shopping and New Year sales require focused planning, especially if you want to remain efficient and make the most of the time of year. Planning involves more than just deciding when to put up and take down holiday decorations; it applies to every part of your business. 

Consider planning in the following areas to avoid unnecessary stress: 

Staffing

Organising a holiday rota can be challenging. A poorly planned rota can leave you understaffed, unable to serve customers, or overstaffed with employees having little to do. Set clear expectations with your staff in advance, indicating when you’ll need extra cover and when you won’t. Send out rotas early so people can plan accordingly, and have a few employees on standby in case of sickness. You may even want to consider hiring seasonal staff if you expect to be really busy.

Inventory

Missing easy sales is every business owner's worst nightmare, so the last thing you want on a busy day is to run out of a popular item. Plan your inventory accordingly. If possible, review sales from previous years. What sold well? What did you still have left over in February? This helps you identify which items to stock up on and where you can save money to free up cash flow.

Opening hours

Not all businesses operate nonstop during the holidays. You may want to give yourself or your staff a break, or your industry may pick up after the holidays, like with personal trainers. However, some businesses need to stay fully staffed with longer hours than normal. In any case, let your customers know when you're open. Display your hours clearly, whether on your premises, website, or social media. If you are closing for Christmas, remember to secure your business. Consider using CCTV or hiring security to protect against crime.

2. Market your festive deals

It might be tempting to skip marketing and rely on the season's busyness, but doing so risks losing customers. With money tight, many shoppers are comparing prices and searching for the best deals. If you're offering exciting discounts, make sure to promote them, ensuring they stand out on crowded webpages and busy high streets.

Set up social media campaigns, use banners, shop-front posters, and tannoy messages to advertise your offers. Whether it's a product bundle to upsell or discounts on gift cards to encourage return customers in January, don't assume your deals will attract attention on their own. Stay ahead of the competition and market your offers regularly.

3. Show your customers some love

Christmas offers a great opportunity to increase your profits, but it’s not just about sales. It’s also a time to recognise customer loyalty and introduce new customers to your brand. You can choose to give something back - be that to your regulars or the local area. A business that values its community and provides excellent customer service is likely to perform better in the long run than one that prioritises profit above all else. You could:

Offer loyalty deals and discounts - this could include a loyalty program where customers collect points throughout the year to spend at Christmas or discount vouchers sent via email marketing

Reply to reviews - if customers leave reviews on sites like Trustpilot or Google, take the time to respond now. Thank them for their positive feedback or address complaints. This public response shows both existing and potential customers that you care and engage with their experience

Send a holiday greeting - if you have customer consent for email marketing, consider sending them a holiday message. A simple, genuine message of appreciation and well wishes for the new year could brighten someone's day and encourage them to see what you’re offering this holiday

4. Manage expectations and give clear instructions

Don’t wait until you’re rushed off your feet to communicate your holiday strategy to staff. Hold regular huddles or increase internal communication about deals and sales goals so employees know what to expect. You could:

• Introduce staff incentives to motivate them to meet any targets you set

• Start the week with a positive note, encouraging employees to engage with the business goals for the week ahead

• At the end of the week, follow up by sharing successes and identifying areas for improvement

The clearer you are, the more confident your staff can be in communicating effectively with customers, helping you reach your holiday targets.

5. Keep your socials active

Social media is a powerful tool year-round, but being more active during the holiday rush can make a big difference. Consider posting seasonal content to mark the Christmas countdown and encourage engagement with festive jokes or anecdotes.

The more engaged your customer base is, the more likely they are to respond to posts that drive sales or action. This could include flash sales or giveaways. If you are giving away goodies, encourage customers to share, comment, or like the post to increase brand awareness.

6. Get ready for the new year

Start preparing for the new year whenever you can, as the holidays often leave little time for it. Depending on your industry, the first week or two of the new year could still be busy with January sales and customers using Christmas gift cards. You don't want to catch yourself off guard. 

And with the self-assessment deadline on January 31, make sure your tax affairs are in order and you have the funds ready to pay your tax bill. HMRC can issue fines for delays, so avoid starting the new year on the wrong foot by failing to meet your legal obligations, and prepare in advance.