How Small Businesses Can Win the Holiday Rush Without Breaking the Bank
The holiday season can feel like a marathon for small businesses. Sales spike, but so do costs — from marketing to last-minute shipping fees. And with "Christmas creep" pushing major retailer to launch sales earlier each year, it’s easy to feel like you’re already behind.
The stakes are high: for many small businesses, the holiday season drives roughly a third of their annual revenue, according to a 2024 survey from Intuit.
With so much riding on year-end sales, small business owners can’t afford to wing it. The savviest ones, experts say, are already planning ahead — setting budgets, tightening operations and finding creative, low-cost ways to attract shoppers. Here are five strategies straight from their playbook.
Build a blueprint for a strong season
Experts say strong holiday performance usually comes down to preparation. That means analyzing last year’s sales data, locking in inventory and staffing plans and mapping out your marketing calendar — a schedule of all upcoming promotions and campaigns — well before your first Black Friday deal drops.
Digital marketing expert Joselin Torres recommends planning inventory and marketing in tandem so you’re not promoting items that are already sold out. She also advises stress-testing your fulfillment process ahead of time — processing a few trial orders and testing how long it takes to ship them out — to catch any weak spots before the rush.
Test drive your customer experience
Don’t wait for an avalanche of orders to discover where your customer experience breaks down. You can avoid costly hiccups later by pressure-testing your systems now — from website performance to shipping and returns.
Martin Ihrig, associate dean and clinical professor at NYU’s School of Professional Studies, suggests walking through every part of the customer journey — website, mobile checkout, packaging and returns — and flagging anything that could go wrong. That means clicking every link, testing every discount code and reviewing every confirmation email to make sure there are no glitches on the receiving end. Even small problems, like a slow-loading page or unclear return instructions, can send customers elsewhere during the holiday season.
“If you’ve already resolved friction by Thanksgiving, you’re ahead,” he says.
Spread out your promotions
Don’t blow your entire budget in early December. Spreading out promotions — from early teaser deals to mid-season specials and post-holiday closeouts — keeps your business visible and your cash flow steady.
Ihrig suggests structuring the season in phases: early teaser offers in November, peak-season discounts in mid-December and clearance deals in January. If something’s not clicking — say, your Instagram ads aren’t converting or your holiday email campaigns fall flat — you still have time to tweak your strategy before the peak rush.
“Don’t dump all your marketing firepower in December,” Ihrig says. A staggered approach “ smooths demand and keeps visibility in a crowded holiday field.”
Use storytelling to stand out
In a season crowded with deals, price alone won’t win customers — but authenticity will.
Ihrig recommends highlighting what makes your business unique, whether that's your mission, your team or your craft. Short-form videos on TikTok or Instagram are a particularly useful tool for giving your brand a human touch that major retailers can't replicate.
You can show behind-the-scenes footage of how your products are made, spotlight a long-time team member or highlight charitable initiatives your business supports. Pick one (true!) story and weave it through your campaigns.
Build in some wiggle room
Successful holiday planning hinges on flexibility. Instead of committing to all of your inventory at once, build in room to adjust.
Structure supply orders in stages or with adjustable lead times so you can "scale up or down based on real demand," Ihrig says. If you run a bakery, for example, you might prep part of your holiday menu early, then ramp up if pre-orders exceed expectations.
Analyzing last year’s sales can help pinpoint what will move quickly and what can wait.
“Small businesses overstock or understock because they guess instead of using data,” Torres says. “Pull last year's sales by week, not by month. This shows when the real spikes happen.”
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