What is Small Business Saturday?
Small Business Saturday is an annual shopping holiday celebrated on the Saturday after Thanksgiving in the United States (occurring this year on Nov. 29). American Express (Amex) first introduced Small Business Saturday in 2010 as a way to encourage people to shop at local small businesses during one of the year’s busiest shopping seasons.
Amex intentionally positioned Small Business Saturday between Black Friday and Cyber Monday in an effort to boost the holiday sales of small businesses that might otherwise be overshadowed by the larger promotions surrounding Black Friday and Cyber Monday. Small Business Saturday helps to shift shoppers’ focus to the smaller, independently owned businesses that form the backbone of so many local economies.
Small Business Saturday is more than just another shopping day; it’s evolved into a movement that highlights the significant role small businesses play in creating jobs, driving innovation, and supporting local neighborhoods. By participating in Small Business Saturday, consumers contribute to a more vibrant, diverse, and sustainable local economy. Small businesses often provide unique products and personalized services that customers can’t find at large chains, making them essential to the character of local communities.
Why is Small Business Saturday important?
Supporting small businesses on Small Business Saturday has a number of benefits that go beyond just purchasing a product. It helps sustain local economies, supports entrepreneurship, and contributes to the unique identity of communities.
- Economic impact: Small businesses are significant contributors to the economy. According to the U.S. Small Business Administration (SBA), small businesses account for 99.9% of all businesses in the U.S., employing nearly half of the private workforce. When customers shop at small businesses, more of the money stays in the community, creating a ripple effect that supports other local services and jobs.
- Strengthening communities: Small businesses are often run by local entrepreneurs who are personally invested in the success of their neighborhoods. These businesses typically engage with community events, sponsor local sports teams, and contribute to charities. By shopping small, consumers help maintain the unique character of their communities and contribute to a thriving local culture.
- Environmental benefits: Small businesses tend to have a smaller carbon footprint than large chain stores. They are more likely to source products locally, reducing the need for long-distance shipping. Supporting small businesses can be an environmentally friendly choice, especially when they offer handmade or locally sourced products.
- Unique products and services: Unlike large retailers that tend to offer mass-produced products, small businesses frequently offer unique, handcrafted items or specialized services. Shopping at small businesses provides consumers with an opportunity to find one-of-a-kind gifts, support local artisans, and discover products that reflect the character of the local area.
From humble origins, Small Business Saturday’s impact is growing here and across the globe
Small Business Saturday has, since its inception, grown into a nationwide movement, with participation from both consumers and small businesses increasing every year.
Though Small Business Saturday was initially conceived in the United States, its success has inspired similar events around the world. Countries such as the UK and Canada now hold their own versions of Small Business Saturday to promote local shopping and support small businesses.
The event’s placement on the holiday calendar is strategic. Coming after Thanksgiving, Black Friday, and just ahead of Cyber Monday, it encourages shoppers to consider supporting small businesses as part of their holiday shopping routine. This timing is crucial for many small retailers, as the holiday season can account for a large portion of their annual revenue.
Tips for a successful Small Business Saturday
For small businesses, Small Business Saturday offers an excellent opportunity to attract new customers, strengthen relationships with existing ones, and boost sales. However, simply opening your doors isn't enough. Here are some key strategies for making the most of this important day:
- Attract customers using these time-proven strategies:
- Leverage social media: In the weeks leading up to Small Business Saturday, use platforms like Instagram, Facebook, and Twitter to promote your participation. Create engaging content that showcases your products, highlights any special promotions, and tells the story behind your business. Use relevant hashtags, such as #SmallBusinessSaturday or #ShopSmall, to connect with a broader audience.
- Give your business a digital makeover: Your social media accounts are just the start. Check your website along with review sites to make sure all online information about your business is accurate and up to date. Make sure that potential customers can easily find information on what you offer, where you’re located, and how they can contact you.
- Engage them with email marketing: Send out newsletters or promotional emails to your customer list, reminding them of upcoming sales, exclusive offers, and in-store events. Be sure to emphasize the importance of supporting local businesses.
- Partner with local media: Reach out to local newspapers, radio stations, or bloggers to spread the word about your participation. Many local media outlets are eager to support community businesses, especially around the holiday season.
2. Create engaging in-store experiences:
- Go one-on-one with an event. Organize an event centered around Small Business Saturday and draw shoppers in with food, drinks, and promotional items. Consider offering special discounts or promotions. Set up in-store demonstrations of your products or services. Consider presenting live music to give your store a festive atmosphere. Keep in mind that the goal is to make shopping at your business an enjoyable experience that customers will want to repeat.
- Personalized service: One of the key advantages that small businesses have over large retailers is the ability to provide personalized customer service. Make sure your staff is well-prepared to offer friendly, knowledgeable service that makes customers feel valued.
- Exclusive offers: Attract shoppers with special promotions available only on Small Business Saturday, such as discounts, buy-one-get-one offers, or free gift wrapping with purchases.
3. Collaborate and coordinate with other local businesses:
- Joint promotions: Partner with other small businesses in your area to create joint promotions or events. For example, offer a discount to customers who show a receipt from another participating small business. This can create a sense of community and encourage shoppers to visit multiple stores.
- Local events: Many towns and cities host events such as street fairs or holiday markets on Small Business Saturday. Participating in or sponsoring these events can increase your visibility and drive foot traffic to your store.
Building long-term success for your business
While Small Business Saturday provides a valuable opportunity for short-term sales, it’s important to use the momentum generated by the event to improve long-term operations and customer relationships. Here are a few strategies you can use to build a stronger, more sustainable business.
A. Improve business operations and efficiency:
- Streamline inventory management: Efficient inventory management is critical, especially during busy periods like the holiday season. Use inventory management software to keep track of stock levels, reorder products when necessary, and avoid overstocking.
- Upgrade point-of-sale systems: A modern point-of-sale (POS) system can help speed up transactions, reduce errors, and provide valuable insights into customer behavior and sales trends. If your current system is outdated, consider upgrading to one that integrates with your inventory and marketing tools.
B. Ramp up customer retention and loyalty strategies:
- Loyalty programs: If you don’t already have one, consider creating a loyalty program that rewards repeat customers with discounts, exclusive offers, or early access to sales. A well-designed loyalty program can increase customer retention and encourage more frequent visits.
- Follow-up communications: After Small Business Saturday, follow up with your customers to thank them for their support. Personalized emails can be particularly effective, with special post-event discounts and offers. Also, you can build your reputation by encouraging customers to leave reviews on your website, social media platforms or review sites like Yelp and Google Reviews.
C. Support your business’s long-term growth and sustainability:
- Expand your online presence: Many customers who discover your business during Small Business Saturday may want to shop with you online. Make sure your website is user-friendly, mobile-optimized, and easy to navigate. Consider offering online-exclusive deals to complement your in-store promotions.
- Focus on community engagement: Small businesses that actively participate in their communities tend to thrive more than those who don’t. Attend local events regularly, sponsor local causes, and collaborate with other small businesses throughout the year. A strong local presence will help you build a loyal customer base.
Carpe diem: Small Business Saturday!
Small Business Saturday is more than just a shopping holiday—it’s a movement that celebrates the importance of small businesses in local communities. By preparing early and employing effective marketing, in-store experiences, and partnerships with other local businesses, small business owners can seize all of the opportunities offered by this exciting day. And with the right long-term strategies in place, they can use the momentum generated by Small Business Saturday to grow their business well beyond the holiday season. Whether you're a small business owner or a customer, Small Business Saturday is a reminder of the power of shopping local and supporting the businesses that give our communities their unique charm and vitality.