How Businesses Can Prepare for The Busiest Quarter and Survive the Holiday Rush

For many small businesses, the fourth quarter is an essential part of the year’s sales goals. The National Retail Federation estimates shoppers spent $296 billion in stores and online during the 2024 shopping season. As retailers gear up for a shopping boom, restaurants prepare for an influx of family gatherings, service providers try to finish strong before year-end, and customers purchase holiday gift cards from personal service providers, the last few months can determine not only how the current year ends but how the next one begins—especially as clients come to redeemed those gift cards in the first quarter.

Take Control of Time During the Holiday Rush

Time is one of the most valuable resources, and it’s often stretched thin during the final quarter of the year. The key is to plan ahead.

• Block time for strategy. Even in the busiest of seasons, it’s important to take time for regular business reviews. Evaluate which promotions are working, address inventory issues, and adjust plans before small problems snowball. Understanding the 80/20 rule is helpful – 80% of results come from 20% of activities. Find the ones that are helpful, focus on those, and deprioritize the rest.
• Delegate, outsource, or hire seasonal support. The excitement from the seasonal rush can make business owners feel like they need to be more hands-on which often leads to burnout. Consider outsourcing administrative tasks to a virtual assistant or bringing in a marketing consultant to elevate holiday campaigns. Seasonal employment may feel like an added cost but streamlining and automating operations allows focus on high-value work like strategic partnerships and customer experience.
• Invest in time-saving tools. Project management platforms can help coordinate complex campaigns across contractors and vendors. Time-tracking tools provide insights for service-based businesses on where time is spent and how to improve. Standard operating procedures and automation can cut down on repetitive tasks and create efficiencies that last beyond the holiday season.

Plan Ahead to Protect Cash Flow and Finances

Cash flow and financial flexibility can make or break, not only a quarter, but the entire business. It’s listed as the top reason businesses go under, according to the U.S. Chamber of Commerce. Preparing in advance can reduce stress and create more stability during business seasonality.

• Forecast cash flow. Use last year’s sales data and upcoming expenses to map out when there will be more money going out than coming in. For gift card sales, it is best to escrow those funds for future redemption to pay associated labor costs or other related expenses. This helps avoid surprises and gives time to prepare.
• Separate operating and reserve funds. Keeping day-to-day expenses separate from an emergency account allows a clear picture of what’s available and when.
• Evaluate payment methods. The holidays often mean more inflow and outflow transactions, so a system to process payments quickly and securely is critical. Online banking tools, automated clearing house transfers, and mobile deposit options can streamline the process.
• Consider short-term financing options. Even healthy businesses can feel the squeeze of seasonal costs from bulk inventory purchases to extra payroll. Having a line of credit or financing solution in place before the rush gives flexibility if unexpected expenses pop up.
• Lean on a banking partner. A small business banking partner can be more than just a place to hold funds, they help think through cash flow scenarios, set up security alerts to monitor unusual activity, and provide the right mix of accounts to match any needs.

Elevate Customer Experience and Employee Experience

During high-demand seasons, success isn’t only about managing time and money, it’s also about keeping the customers and team in mind.

• Refresh any digital presence. Ensure holiday hours, contact information, and seasonal promotions are consistent across websites, Google listings, and social channels. A quick audit now can prevent confusion later.
• Communicate with customers intentionally. Retail business owners should set realistic expectations for order cutoffs, shipping timelines, and special hours, early and often. Email newsletters, events, videos, and social media updates can reinforce this message and create engagement.
• Show appreciation for the team. A busy quarter is a marathon, not a sprint. Start the season off strong with team-building activities and offer flexible scheduling to boost morale. Work with a small business banking partner to prepare for end of year bonuses or other monetary gifts.
• Prioritize onboarding and training. Take the time to properly onboard and equip new hires with the tools to handle the holiday rush.

The fourth quarter doesn’t have to be overwhelming. Connecting with one of our talented business bankers can help you tackle any challenge – no matter how big or small.