- Q4 is often the most important time of year for small-business owners who are hoping to reap holiday sales.
- However, in the last two years, many entrepreneurs have faced challenges such as supply chain woes.
For many small-business owners, the fourth quarter is the most vital time of year as entrepreneurs hope to net strong holiday sales.
In fact, 24% of the 550 entrepreneurs surveyed between September 20 and October 3 by fintech firm Kabbage, which is owned by American Express, said their upcoming holiday sales will determine if their business can survive into next year.
However, throughout the pandemic, many small-business owners have faced challenges during the holidays, such as rising inflation, supply chain woes, and changing consumer habits. Today, they're anticipating these hurdles and creating solutions to navigate them.
Here are the strategies small-business owners are tapping ahead this holiday season.
Order plenty of products
For example, 30% of the 550 entrepreneurs surveyed said they were stocking up on inventory. That's because 74% said they were worried about supply chain issues heading into Q4.
Dara Weiss, cofounder of candle brand L'or de Seraphine, hatched a similar inventory strategy this year. Due to the unpredictability of manufacturing and shipping timelines, she previously told Insider she stocked up on products to ensure she'd have enough for the holiday season.
"Everybody is more sensitive now than in the past to having that product early," she said.
Invest in marketing tools
Meanwhile, 27% of small-business owners are managing customer expectations and setting realistic shipping dates in case there are potential supply chain issues, the survey found. And 23% are investing in marketing tools as they reconsider their cash flow management, the survey found.
Marketing tactics can include social media strategies such as user-generated content, where a business account posts content shot or filmed by users. This is often a free and shrewd way to repurpose content, Delsy Gouw, founder of hand-crocheted bathing suit line Memorial Day, previously told Insider.
"My initial strategy was to work with smaller influencers, because you never know where it can take you," Gouw said. "Once one celebrity wears it, then another celebrity wants to show their support."
It's also important for entrepreneurs to know which social media platforms are the best for their desired outcomes. For example, TikTok may be a good place to try and go viral but YouTube has a longer shelf life, which can help attract new customers, Kar Brulhart, a social media strategist and coach, previously told Insider.
"We're thinking about how can we have an omnichannel marketing strategy, meaning show up on multiple platforms and get more eyes on your content," Brulhart said.