Introduced by American Express in 2010, Small Business Saturday is an annual event that aims to promote small businesses during the holiday shopping season, specifically on the Saturday following Thanksgiving.
Small Business Saturday is one of the most anticipated small business events, up there with National Small Business Week. It’s a chance for businesses to attract new customers, increase sales, and strengthen relationships with their local communities.
In this article, we’ll discuss everything you need to know about this shopping event — what Small Business Saturday is and how it works. More importantly, how you, as a small business owner, can make the most out of it.
We’ll answer that and more.
Objectives of Small Business Saturday
In a nutshell, Small Business Saturday has one primary objective: to invite holiday shoppers to support local businesses in preparation for Christmas and the New Year. It falls between Black Friday and Cyber Monday, a time when people are already spending lots of money.
From the day of its inception till 2023, Small Business Saturday has amassed a total revenue of over $184 billion, according to the US Chamber of Commerce. It’s the second-largest event on Thanksgiving weekend after Black Friday.
Consumers spent approximately $17 billion on the event in 2023, with nearly 59% of the US population contributing to small retailers or restaurants in some form or another.
Small Business Saturday aims to achieve the following goals:
Boost Local Economy
Small businesses often lack the resources and scale to compete with big-box retailers and withstand economic downturns.
By encouraging concentrated spending at local businesses, consumers are directly giving them a much-needed financial boost.
Every dollar spent at local businesses adds $0.48 to the local community, according to American Express.
This means for every $1000 spent, shoppers contribute $480 to the community.
Such revenue can be used to fund public services, infrastructure development, and other community initiatives.
Promote Small Business Awareness
Small Business Saturday shines a spotlight on local restaurants and shops.
It highlights the unique products and services they bring to neighborhoods, leading to more people supporting them beyond the event.
It also acts as a deliberate call-to-action to consumers to shop locally instead of turning to chain stores.
Small businesses often put more love and personalized effort into their products than larger corporations, resulting in higher-quality offerings and items.
Create More Jobs
Small businesses create more jobs than large businesses. In fact, nearly half of all US employees (45.9%) work at small businesses, according to Forbes.
This data proves beyond a shadow of a doubt their significant contribution to the country’s employment health and overall economic success.
The U.S. Small Business Administration (SBA) states that there are approximately 33.2 million small businesses in the United States.
Despite the fact that eight out of 10 small businesses have no employees, the small business workforce still totals a staggering 61.6 million Americans.
Encourage Entrepreneurship
Small Business Saturday can indirectly encourage aspiring entrepreneurs to pursue their dreams of starting their businesses.
It also offers a broader perspective on the various types of small businesses thriving in their communities, allowing them to think of potential business ideas and identify gaps in the market.
More importantly, this event allows soon-to-be entrepreneurs to connect with established business owners, mentors, and individuals who can provide advice, insights, and support.
Large businesses rarely offer such personalized guidance and networking opportunities.
How Small Business Saturday Works
Small Business Saturday is much like Black Friday, except a lot more personalized.
Many businesses offer special discounts and promotions to attract customers, including percentage-off discounts, buy-one-get-one-free deals, or special pricing on selected items.
Unlike big-box retail stores, which sometimes engage in deceptive practices like inflating prices before offering discounts, small businesses tend to give out more genuine deals.
And from my experience of supporting local businesses, most prioritize building trust over earning significant revenue.
They don’t have the budget for extensive ads and marketing, so they compensate with top-tier customer service and reasonably priced but exceptional-quality products to keep customers coming back for more.
Some businesses also host activities and events to draw customers in and create a lively, festive atmosphere. These can include:
- Food tastings
- Product demonstrations
- Live music performances
- Workshops related to their products or services
- Contests
- Auctions
- Raffles
The goal of these events and activities is to promote a small business’s products and services.
Gyms, for example, can offer free post-Thanksgiving workout tips for potential new members.
Boutiques can host a fashion show featuring local models wearing their latest product line, local cafes can organize a coffee-tasting event, and bakeries can offer baking workshops for those interested in making holiday treats.
Key Takeaway: Participating in Small Business Saturday allows you to shine! It serves as a touchpoint with potential customers willing to support local businesses. But this isn’t just about shopping deals. It’s a movement that encourages buyers and sellers to contribute to the local community, fostering relationships and promoting economic growth.
Benefits for Small Businesses
Small Business Saturday is the biggest and most valuable event that small businesses can participate in. It offers a multitude of advantages, including:
Increased Sales and Revenue
Outside of opening and ludicrous promotions, it’s one of the most impactful opportunities for small businesses to increase their profits. Because this event is set in the middle of Thanksgiving and the Christmas season, people are already in their spending mode, enjoying the long holiday period.
Increased Visibility
Though small businesses make up 99% of US businesses, only 65.3% are thriving and making money. The rest are either struggling to make ends meet or dealing with financial challenges that hinder their growth and sustainability.
Small Business Saturday helps struggling and new businesses to make themselves known to the local public. The event allows them to distribute flyers, brochures, and product samples, showcasing their offerings.
Increased exposure equals new customers and a solid brand presence within the community.
Networking Opportunities
Participating in Small Business Saturday opens opportunities to connect with other local businesses and organizations. This can lead to partnerships, collaborations, and the exchange of valuable knowledge and resources. And from new connections come new ideas!
Who knows, maybe Greg from the boutique down the street is looking for someone to help design custom jewelry, and you just happened to be a talented jewelry maker looking for new opportunities.
Forbes states that businesses that actively collaborate grow faster than those that don’t. Collaborations expand your reach by tapping into each other’s customer bases.
Boost Morale and Motivation
Research says only 80% of businesses survive in their first year. This means that 1 out of 5 businesses will fail or shut down.
Running a business can be demotivating at times, especially when there aren’t many customers. It makes business owners doubt their ability to succeed in a competitive market.
Events like Small Business Saturday can revitalize an entrepreneur’s morale and inspire them to keep pushing forward despite the challenges.
Even if they don’t earn much during the event, they can still collect valuable customer data which they can use for future marketing efforts.
They can also use this event to see how other small businesses retain customers and what their products are like compared to theirs.
Marketing Strategies for Small Business Saturday
Business owners gain free publicity in their locality during Small Business Saturday.
Business owners can use this event to promote their products, services, and brand to a large audience.
If you’re planning to participate in Small Business Saturday, here are some effective marketing strategies to try:
Leveraging Social Media
Social media is one of the easiest (and cheapest) ways to create buzz around your participation in Small Business Saturday.
To promote the event a week before, share exclusive offers and promotions with your online followers and incentivize them to shop with you.
You can also post behind-the-scenes of your preparation for the event and sneak peeks of your new products.
The official tag for Small Business Saturday is #ShopSmall. Here are some other tags to use under your posts to get the word out:
- #SmallBusinessSaturday
- #SmallBizSaturday
- #SmallBizSat
- #SmallBusinessLove
- #SupportLocalBusinesses
- #ShopSmallNewYork (Replace with your city or town)
- #SupportNYSmallBusinesses (Replace with your city or town)
In addition to these tags, include your niche, location, and industry.
To know more about using hashtags to boost your small business and expand customer reach, check out my simple guide to hashtags for entrepreneurs.
If you want to be brand-specific on your hashtags to ensure more eyeballs reach your promotions, use hashtag research or generation tools like Tailwind.
Using the Local Press
The law requires local news and radio stations to allocate a small segment related to local news, activities, and businesses.
Reach out to these stations and pitch your Small Business Saturday promotions and events. The promotions should be good enough to catch their attention and persuade them to feature your business.
If you don’t mind spending a few dollars, inquire about the advertising slots available for Small Business Saturday. Small city and town ads cost as little as $15 to $35 per 60-second post.
Self-initiating Advertising
If you’re not a big fan of radio advertisements, consider running paid social media ads instead.
Create eye-catching and to-the-point ads highlighting your Small Business Saturday promotions and post them on Facebook, X, or Instagram.
You can also get the word out by buying a print ad in the local newspaper or magazine or simply handing out flyers a few days before the event.
Sending Out Emails and Texts
If you’re a relatively established business with a few hundred customers, you can send promotional emails and texts to let your customers know you’re participating in the event.
In the same email, add unique discount codes and promotions that loyal customers can use when visiting your booth or purchasing from your website.
Key Takeaway: Small Business Saturday offers a wealth of benefits beyond sales. Increased visibility through media exposure and event participation helps you connect with new customers. Networking with other local businesses opens doors for collaboration and resource sharing. Even if sales are slow, the event boosts morale and provides valuable customer data for future marketing efforts.
Wrapping Up Small Business Saturday: A Summary
Small Business Saturday is a once-a-year event that incentivizes consumers to support their local businesses.
The money earned during this event—which often exceeds the billion-dollar mark—greatly benefits local communities and helps support jobs.
If you’re participating in this year’s Small Business Saturday, we wish you the best of luck.
Bookmark this post so you can later refer back to the tips highlighted above and make the most out of your participation.
