Take Advantage of Black Friday and Small Business Saturday to Launch The Holiday Season

It’s the time of the year that retailers – particularly small business owners – look forward to: the holiday shopping season, which commences on the day after Thanksgiving (AKA “Black Friday”). As the name implies, it is the day when many retailers begin to generate a profit for the year, going from being "in the red" to being "in the black." In fact, 20 to 40 percent of yearly sales for small and mid-sized retailers take place within the last two months of the year, according to the National Retail Federation.

The holiday shopping season is generally a time when cash flow improves, and retailers generate sales to make up for any losses in previous months. They also can prepare for leaner times that may come in January. The success of the holiday season will determine many things for the coming year, including growth plans and whether or not to pursue small business financing in order to pursue those plans. A strong holiday season can mean an easier time for entrepreneurs seeking small business loans.

While some retailers get a jump on the holiday season by opening in Thanksgiving Day, others are mindful of potential backlash from consumers and staff at a time when finding available workers can be a challenge. Thus, it is Black Friday that gets the ball rolling, followed the next day by Small Business Saturday. Launched in 2010 to spur holiday sales during the Great Recession, American Express has promoted the Saturday after Thanksgiving as Small Business Saturday, which this year takes place on November 24.

Elected officials, business leaders and local chambers of commerce across the country have jumped on board for good reason: an average two-thirds of every dollar ($0.67) spent at small businesses in the U.S. stays in the local community, according to the Small Business Economic Impact Study from American Express. In fact, the study found that if U.S. small businesses (defined as companies employing fewer than 100 employees), were a country, they would have a GDP of $4.8 trillion, equivalent to the GDP of Japan, the third largest economy in the world.

Further, every dollar spent at small businesses creates an additional 50 cents in local business activity as a result of employee spending and businesses purchasing local goods and services. Thus, consumers’ local economic impact during the holiday shopping season is significant.

“What began nine years ago as an effort to support local stores during the holiday shopping season has become the Shop Small movement, bringing together millions of shoppers, small businesses of all kinds, civic leaders and organizations in thousands of towns and cities across the country,” said Elizabeth Rutledge, Chief Marketing Officer at American Express. “Shopping small has a significant and positive effect on local communities, and we hope Small Business Saturday will help to amplify that effect during the crucial holiday shopping season. When we spend local, small businesses thrive. And when small businesses thrive, we all thrive.”

Promoting support for small businesses does not have to be relegated to one day or even the holiday season. Entrepreneurs should spread the word about the importance of shopping at local businesses all year long. Small Business Saturday can be the start of co-branding promotions and other collaborations between local business owners. Consider hosting holiday events, such as special shopping nights featuring refreshments and cross-promotions with other companies to promote each other's companies during the holiday season.

In the coming year, consider creating events on the local level that will being the community and businesses together. Cause-related marketing efforts don't have to be relegated to December. You can use the holiday season as the launching point for a cause-marketing program that takes place throughout the year. Support a cause that matters to you, your employees, and your customer and that aligns with your brand. For instance, offer shoppers a discount if they contribute cans of food or other nonperishable items at your store for donation to a local food bank.

There is strength in numbers, particularly when complementary, non-competing enterprises and charitable organizations work together.

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