The start of October marked the beginning of the holiday season, which is filled with marvelous opportunities for small businesses. And we’re not just talking about Halloween or Christmas. In addition to the most well-known holidays, the next few months contain at least three special days that can easily be capitalized on with the right marketing and management efforts. All you have to do is make the necessary investments well ahead of time in order to attract interest when it is up for grabs and have everything you need to keep customers satisfied.
Here are just a few ways the holiday season can bring massive revenue for your small business:
STAGES 1 AND 2
The holiday season can be viewed as two stages, or rather two opportunities for success. Stage one consists of three days in November: Black Friday on the 24th, Small Business Saturday on the 25th, and Cyber Monday on the 27th. Black Friday is usually one of the biggest sales days of the year, and it is followed by a day in which consumers are encouraged to seek out smaller businesses. Cyber Monday technically only affects ecommerce giants but you can tie it together with one of the other two days in order to entice customers to come back to you for the rest of their holiday shopping.
Stage 2, as you can probably guess, is the religious holidays and New Years. Costumers have different expectations for this stage than the first, which suggests your marketing and customer retention tactics should be different as well. But make no mistake, both stages require significant investments that must be made within a certain time frame to prove successful, and that’s where alternative business financing companies like United Capital Source come in.
MINIMAL REQUIREMENTS FOR EACH PERIOD
Research has shown that Black Friday deals are most effective when they are hyped up well ahead of time. You have to figure out which products are attracting the most demand from your target demographic and then offer a deal they won’t be able to find anywhere else. The same concept applies for Small Business Saturday, when many local businesses reward customers with special discounts and deals that are only available on this specific day of the year. For a piece of the pie on Cyber Monday, use combined offers, like distributing coupon codes with the receipts from purchases made on Black Friday or Small Business Saturday.
You’re also going to be doing a lot of marketing and giving out a lot of deals for Stage 2. A good way to gain local publicity is to invest in getting listed in local holiday gift guides. On top of your gift-related inventory, it would be wise to show your appreciation for your customers by giving away clever items with certain purchases. It can be something branded or holiday-themed, like wrapping paper and ribbons.
JUST A LITTLE OUT OF YOUR PRICE RANGE…
Let’s go over what you’ll need to capitalize on each stage of the holiday season, in terms of investments. There’s advertising, inventory, and possibly more staff to maintain quality customer service despite the surge in demand. Keep in mind that this amount of advertising and inventory must be sufficient to cover both stages, and the longer you wait to begin either initiative, the more expensive they become.
Securing these investments wouldn’t an issue if they didn’t have to be made at the same time to ensure you have plenty of time to attract interest and prepare your store. Not to mention the fact that if your busy season is the holidays, you are most likely in your slow season right now. United Capital Source offers several unsecured business loans tailored for this exact situation, such as merchant cash advances and other types of working capital loans.
WE HAVE THE PERFECT SMALL BUSINESS LOAN FOR THIS DILEMMA!
Small business loans against credit card sales are perfect for holiday prepping for a few reasons. First off, you can receive a high amount just three or four business days after funding is approved, allowing you to purchase inventory in bulk when it is available for a discount and launch marketing campaigns as customers are just starting to think about the holidays.
Payments for a merchant cash advance are tied directly to credit card sales, so you don’t have to dig into operational funding when sales are down in the months beforehand. Effective rates are lower when your payments are more spread out, or, in this case, split between two stages separated by approximately an entire month.
IN CASE YOU STILL AREN’T SURE
Another reason we recommend credit card processing loans for the holiday season is that it lets you develop good relationships with your suppliers and marketing team. Being able to pay them on their schedule will most likely earn you discounted prices as well as advances on new opportunities in the future. Payments for a merchant cash advance are taken when you normally batch out which and are tied to sales volume which makes it easier to calculate cash flow and to pay for marketing in addition to regular business expenses.
A SHORTCUT TO THE FRONT OF THE LINE
With all these opportunities to capitalize on in the near future, you can be sure your competitors have already begun investing in maximizing performance. All it takes is one phone call or email to United Capital Source to get right back in the race alongside them. With no fixed monthly payments to worry about, you can finally take all the time you need to develop that winning strategy and gain every resource necessary for its completion!