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What’s Next For Your Micro-Business
Will Your Small Business Have Happy Holidays?
This holiday season may not be all merry for small businesses.
Some trend watchers say online sales could disappoint cyber retailers. Other forecasters predict that deep in-store discounts will be necessary to entice holiday shoppers. And by some estimates, business-to-business gift giving will be more holiday cards than lavish baskets filled with champagne and chocolate.
Forrester Research (www.forrester.com) reports that online holiday sales for 2004 are expected to rise by 20 percent over last year, to $13.2 billion. That’s considered only a moderate increase, not a sales jump that will generate much Ho Ho Ho from online retailers.
Forrester also expects more retailers to use their Web sites to drive shoppers into bricks-and-mortar stores. Once inside, consumers will expect to find deep discounts on merchandise and huge promotions on products.
Non-retailers won’t be left out in the cold during the holidays. Service providers, consultants and professionals will still use the season to generate goodwill with their customers – be that business-to-business clients or individual consumers.
A recent survey by G.Neil, one of the nation’s leading holiday card catalogers, showed that more than 60 percent of businesses purchasing holiday cards use them as business building tools with customers. But only about 25 percent of those businesses will also send corporate gifts during the holidays.
So expect to get and give more greeting cards than fat fruit baskets this year. Times are tight all over.
What You Can Do
Your small business can put more cha-ching in holiday sales with these ideas:
Offer online freebies
If your online store can offer free shipping or free gift-wrapping, you could get a leg up on competitors.
Plenty of online retailers will be feeling the profit pinch this holiday season. That means they’ll forego customer freebies and scale back promotions. Meanwhile, shoppers will be looking to save every penny. Give online buyers money-saving reasons to purchase your merchandise instead of the competition’s.
Drum up in-store sales
Deck your retail halls with holiday promotions. Shoppers will be on the hunt for good deals as they search for those perfect gifts.
Give consumers attractive discounts. Bundle merchandise to offer customers even more appealing deals. Use festive signage to point shoppers toward good values. Encourage early-bird shoppers with special sales.
Build goodwill that will last all year
Independent contractors and other non-retail businesses shouldn’t let the holiday spirit slip away. Use the time to reinforce your relationships with clients.
Send holiday cards that wish customers “Season’s Greetings” or a “Prosperous New Year.” Personally sign the cards. Thank your clients for their business in the past. Tell them that you look forward to doing business with them in the future.
Don’t overspend
Set a budget for business gifts, employee presents or bonuses and decorating your office. It’s easy to get carried away during the holidays. On the other hand, you don’t want to be a Scrooge. Create your budget. Stick to it. You’ll have happier holidays.
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