The holiday shopping season keeps starting earlier and earlier.

While consumer spending trends vary from year to year, the winter holiday season is always one time when people spend the most money. Holiday sales during November and December typically represent about 20% of annual retail sales, and that figure is higher for some retailers.¹ Even those who aren’t buying holiday gifts often spend more on dining out, entertainment, home décor, and groceries during the holiday season, as opportunities to gather with friends and family increase.

All of this means it’s time to prepare your business for the rapidly approaching holiday shopping season with the following tips.

Brace for ongoing labor shortages 

Many businesses have battled to recruit and retain qualified, dependable workers over the past few years. These labor shortages coupled with competition for seasonal employees can make hiring difficult during the holiday season.

In this tough hiring environment, look for ways to improve your situation. Start by doing your best to keep the employees you have by making them feel like an important part of the team and offering low-cost but valued perks, such as flexible scheduling. If you can better manage labor demands for Buy Online Pick Up in Store (BOPIS) or carryout services, promote online purchasing to your target customers.

If you still need more workers, target college students who may be home for the holidays and consider offering incentives for current employees who successfully recruit new employees.

Analyze cash flow

Before the holidays arrive, take time to analyze your cash flow so you can determine what to expect during the holiday rush — and for which target you should aim. Start by taking a detailed look at your sales numbers from last year’s holiday season, if you can. If it’s your first year in business, do your best to estimate the holiday bump you could expect. By understanding your cash flow history, you can better plan for the coming season and set goals for holiday sales.

As you review, look closely at which days were your busiest or highest grossing. Look at your overall earnings during the holiday season, as well as the expenses you incurred before and during the holiday rush. 

With this information in mind, set specific sales goals for the holiday season. Figure out how much you can expect to earn, how much you might be able to spend on marketing campaigns, and whether you can expect enough cash to offer employee gifts or bonuses during the holidays.

Also, look at your sales from the previous January. If your sales slowed considerably after the holidays, you’ll need to aim for bigger profits in December to offset the potential slump. After reviewing your cash flow history and expectations, you can confidently set specific goals for the holiday shopping season and start working toward meeting them.

Start promotions early 

If consumers start holiday shopping earlier than usual, be ready for them with preseason promotions. Don’t wait until Black Friday is approaching to start communicating with your customers about holiday season items and offers. Think about sending promotional holiday emails, mailers, and other promos a few weeks earlier than you typically would.

Avoid offering your lowest prices too early in the season though; it’s a good idea to leave wiggle room so you can reduce prices closer to the holiday if needed. Instead of focusing on low prices, focus your early promotions on the chance to purchase items now that may become scarce later, or to avoid the holiday rush and potentially higher shipping costs.

Embrace omnichannel sales

While many holiday shoppers will always favor in-person shopping, dining, and entertainment, others prefer the convenience and ease of shopping online. Rather than forcing customers to use the method that you prefer, embrace a combination of selling methods.

If you don’t have an online presence, consider creating one with Shopify or by selling products on Etsy or Amazon. And if you don’t have an in-person location, consider a pop-up shop or festival booth that allows shoppers to discover your wares in person during the holiday season.  

Heighten security awareness

Increased traffic, both in person and online, can bring with it greater security risks. Before launching the holiday shopping season, it’s important to take steps to protect both your digital and physical business.

Cyberattacks increase during the holiday season for businesses and individuals. If your business is not prepared to defend itself against such an attack, take steps to implement secure passwords and multifactor authentication to protect your networks. Also, train employees to detect and report phishing emails, which are a leading method hackers use to gain access to system networks.  

If you have a physical location, consider stepping up security measures during the holiday season. Make sure someone will be available to accept packages or make arrangements to pick up packages at a shipping warehouse rather than allowing deliveries to be made when your business is unattended.

Decorating for the holidays is a great way to attract customers, but be sure your decorations do not obstruct any security cameras or systems. Require that all computers and other devices are powered down before leaving the location for the evening, and ensure that indoor and outdoor lights are working properly so your business is always well-lit.

By taking the right steps to be prepared, you can take advantage of consumer spending trends and celebrate a happy, profitable holiday season.

From business checking accounts to fraud prevention services, let our team pair your business with what it needs for a successful holiday shopping season.