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Oct 29, 2009 -

As the nation once again surges into the critical winter holiday season, many small business owners are thinking about how their strategies will be different during continued recovery. This fall, experts have finally started to see a marked difference in profit outlooks, particularly for retail stores. Many large industry players such as Target, Kohl’s and J.C. Penney Co. have boosted their projections when events like back-to-school sales in September – major gauges of shoppers enthusiasm for spending – garnered more positive results than anticipated.

Last month’s improvements in sales for retailers signaled the second straight month of better-than-anticipated predictions and the most significant profits since July, 2008. Other sources, including Retail Metrics showed even better returns, with retailers posting a 1.1% increase in profits.

Beyond the retail market, small business reports this fall predict that the second half of 2009 and the holidays will look much better than last year for those in other industries. A Small Business Research Board (SBRB) and Investment Promotion Agency (IPA) poll revealed that 66% of small business owners and managers expect their financial outlook to be better in the latter part of 2009 than it was in the first half of the year and last year at the same time. Also, 59% of small businesses surveyed said they had been able to keep revenues steady without having to significantly reduce costs.

Many small company owners and managers are seeing quite a few benefits emerge in 2009 as the result of the recession and recovery that were not present in 2008, that will actually help them keep momentum during the holidays. The following business strategies can help small businesses thrive through the end of 2009.

Take advantage of the high unemployment rate. In the retail industry, many companies are seeking seasonal help thanks to their expectations of improved sales, and having access to many more candidates than in previous years has helped make the hiring process easier for them. In other markets, small business owners and managers are finding that because of improved profit expectations, the holidays are no longer off limits for hiring new staff. The availability of many qualified and even over-qualified workers that are unemployed means small business managers can tap into a larger pool of viable candidates that have much stronger skills than in previous years and are willing to work for less. With stable and even increased budgets, businesses in the retail market and beyond are getting creative with positions. Many are going beyond traditional sales floor jobs and looking for those to help with behind-the-scenes work such as stocking, shipping, maintenance, recruiting and human resources.

Online presence is more important than ever before, so use it. According to survey results released this month by MarketLive and the E-Tailing Group and reported by Web Pro News, 55% of people plan to shop online during the holiday season this year, up from 49% last year. Also, 26% of shoppers plan to buy more gifts online than in previous years, up from 21% in 2008.

Tap into the 88% of online shoppers who continue to do so because of great customer service, the availability of difficult-to-find items and customer conveniences like 800 numbers, online chats and instantaneous e-mail alerts when items are shipped means businesses are going to be focusing this year more than ever on building a stable, professional, pleasant online shopping environment for customers. Even business owners without e-commerce sites are going to have to put a greater focus than ever before on the professionalism of their business Web sites. Many without an online presence will need to consider creating them in order to boost sales.

Social networking is becoming a necessity for small business owners. Facebook now touts 300 million active users, 50% of which log in on a daily basis, with those in the 35 and over demographic among the fastest-growing group of users . This trend in marketing is not going away anytime soon, and even small businesses still watching their budgets during the 2009 holiday season can use Facebook and Twitter as free methods for announcing special holiday promotions and to create a more personal relationship with clients and potential clients.   

While the holidays in 2008 were marked by paring back for many small businesses, 2009 could be positively different. Businesses that pay attention to their customers’ needs; tap Internet resources; and understand economic realities like the unemployment of many talented hiring candidates will be able to navigate the recession and recovery and even benefit from it.