Holiday Christmas Business Ideas
It’s the most wonderful time of the year! Now that November has come, retail stores are switching from the Halloween decorations, and Christmas music can be heard until January. In this article, I’ll share some business ideas for the holidays that are actionable, attainable, and relevant to the season that YOU, yourself could start with limited capital. I’m posting this article now because a business will need some planning and time to execute.
The annual holiday season presents a lucrative opportunity for aspiring entrepreneurs and small business owners. Traditionally, the holiday season is the busiest for retailers, and now with pent-up demand due to the COVID-19 pandemic, the 2021 holiday season is a great time to put those entrepreneurial ideas to action. I’m already seeing people out and about in various events with the easing of restrictions (such as with Halloween), which is great to see.
But first, I’ll share some background as to why businesses don’t just like, but LOVE the holiday season.
For one, most consumers are in a great mood, and they are eager to spend their hard-earned dollars. Consumers intend to spend quality time with family and loved ones during the holiday season. It’s a time to unwind, relax, and reflect on the year. And where there are gatherings, expect gift-giving. A new study from NDP Group indicates that 29% of US consumers intend to spend more on holiday shopping than last year; the survey indicated a rise in consumer optimism regarding for the holidays.
Another study seems to support that notion. Retail Council of Canada found that Canadians are more optimistic going into the holiday season, ready to get back into physical stores. 36% will start shopping in November (https://toronto.ctvnews.ca/canadians-plan-to-spend-more-this-holiday-shopping-season-survey-1.5633315).
Not only do they spend more, consumers plan to spend earlier. The term “Christmas Creep” refers to a marketing and business phenomenon when retailers encourage shoppers to shop earlier in the year. Most shoppers kick start the holiday season and shop around November, but it’s not uncommon nowadays for retailers to start advertising for the holidays not just in October, but in September. I remember going to Canadian Tire and noticing Christmas trees for sale in September.
Here are some holiday-related business ideas you can start with low startup costs. The key to these businesses is that they solve customer pain points and problems. Customers will pay for services that provide value-the fundamental question you should be asking when you start these businesses is: how do we make the holiday experience more enjoyable? By providing services and products that are pre-packaged and ready to go, your business will save time and energy for customers.
Idea #1: Baked Goods and Sweets
The latter part of the year is when there seems to be an uptake in the consumption of sweet treats such as cupcakes, cookies, and desserts. You can see festive baked goods during the holiday season at events such as office parties, family gatherings, or used as gifts. However, it may be challenging for potential customers to prepare these treats on their own due to limited time (not everybody has the ovens, ingredients, or supplies to prepare these sweet treats). Where a business could be started is preparing handmade items, and then using a platform such as Facebook marketplace or Instagram to advertise your creations.
Retail businesses are working hard to tweak the display of their products to make their products more appealing. Bright red and green colours bring a festive atmosphere to the store. Other small businesses with little to no storefront space may opt for an E-Commerce platform to help sell their products. Instagram is a common medium of communication and consumers can ‘DM’ their order if you plan to start your business but want to test out the waters first.
Consumers are dropping the standard, basic desserts for unique, hand-made custom-curated goods with fresh ingredients. By selling a successful product during the holidays, this is a great way to build customer loyalty and encourage more sales throughout the year. These consumers may not necessarily shop at a bakery and only for a special occasion, which makes starting a business for this purpose an interesting option for many. There always seems to be a market for baked goods for these occasions, and the ability to use home-based equipment means that it’s easy to start (pending the necessary food-safe requirements). Supplies such as flour, eggs, and sugar are common baking staples found at the grocery store. Encourage pickup to minimize delivery costs and transportation.
Idea #2: Handcrafted goods using Etsy
I mean…need I say less? It’s October 28 when I’m writing this article, and many consumers are already doing shopping for handcrafted items (see the screenshot below). Some consumers have done shopping already in September / October for unique gifts, and there’s a sizable market for unique, handmade gifts and cards. Billions of dollars are spent every year on Christmas and holiday decorations, and even fresh Christmas trees as well. It’s a stable market with predictable, seasonal revenues. Designing and manufacturing handcrafted goods for presents can be done with very little capital, and basic raw materials you can get at your local general store.
With platforms such as Etsy, you can easily monetize your creations — online shopping is expected to be a dominant strategy and platform for many small businesses. The COVID-19 pandemic and lockdowns have made it very challenging for some to shop in person. Setting up an Etsy store is easy, and you can have the ability to choose themes for your store for the holiday season. A storefront can be listed with basic products, and you can play around with functionalities such as sales, coupon does, and unique layouts for your site.
According to market research, the biggest art selling season is in the 4th quarter, during the months of October, November, and December. Some retailers even earn as much as 50% or more of their ANNUAL sales during the holiday season, where sales seem to come a bit easier.
An example of a product that is consistently bought every year without question, in high demand, are holiday Christmas cards. Business ideas don’t have to revolutionize an industry, but they should solve a need in your community. Some of the best businesses sell products that are routinely purchased. Hallmark cards can be pricey and generic. Why not support a local small business that creates unique artwork?
If you’re an artsy or handsy individual looking for holiday business ideas, check out this video if you want to learn more about how to monetize handcrafted goods with calligraphy such as cards, envelopes, and even ornaments.
Idea #3: Custom Home Decorating and Light Installation
This is a business that pairs well if you do interior design or work in an art-related field. If you are creative and handsy with tools, holiday decorating and light installation may be for you. Some business owners add holiday home decorating services to their business if they’re summer-based (like lawnmowing). Christmas light installation and decoration are actually in demand as some homeowners choose to outsource their installation of holiday lights — it can be quite dangerous especially for senior citizens due to the slippery roofs. This is where a Christmas lights installation and home decorating business comes in; it’s a business that if done well, can be a cash cow due to the high loyalty from consumers.
Holiday decorating can be done not just for residential homes, but for businesses as well. Many retailers do not have the necessary time or resources to decorate their store, so this is a job that is outsourced. There are a variety of clients you can choose to hone in on. If you have a customer base from your Christmas and holiday decorating business, you can expand it to other holidays such as Halloween, weddings, even the Fourth of July. Weddings can create stable monthly income in addition to the holiday season.
This article discusses how Christmas light installation turned into a business with a net profit of $138,000 (https://www.thepennyhoarder.com/make-money/start-a-business/hanging-christmas-lights/). Purchasing lights from wholesale vendors can help reduce the costs of these lights.
The con of home decorating is potential physical dangers as you’ll be working with ladders. Another challenge is that each house is different due to roofs, hedges, bushes, and the number of windows — this creates variability between your work orders. This is something you’ll have to take into account should you pursue this business idea.
Idea #4: Delivery Services
The holiday season SHOULD be a time for rest and relaxation, but can be stressful if you’re organizing large holiday parties and gatherings. Not only do you have to decorate the home, but there’s food to prepare, guest lists to organize, decorations and ornaments to be put up — it can be overwhelming.
This is where you can start a business to deliver products to your clients during this busy time. It can be anything from couriering special gifts, groceries for the big dinner, to Christmas tree delivery. Instacart took advantage of this strategy during the Halloween season by delivering costumes in addition to its regular food deliveries. They also partnered with Kroger to deliver last-minute treats; as you can see time tends to slip away from consumers so this service was of need by consumers.
What makes this an ESPECIALLY lucrative business idea is the supply chain constraint problem. There appears to be an issue with a shortage of drivers already, adding to costs for delivery. Freight and courier businesses are expected to be extremely busy this year. New businesses specializing in delivery can tap into this unprecedented demand, with an uptake in shopping activity during this time of year (https://notlost.com/why-courier-companies-must-prepare-for-the-most-demanding-christmas-period-yet/). Businesses, as well as regular individuals, can serve as profitable clients.
Idea #5: Gift Baskets & Wrapping
Gift baskets provide the perfect opportunity to provide a variety of curated items in one specially prepared bundle. These gifts can be a great option for individual and corporate target markets. Gift baskets make great presents and can help to foster a positive relationship with clients. They come with fancy wrapping, prepackaged and wrapped, making it easy to give and very little effort is needed on your part.
Gift baskets can be catered to a variety of crowds. At my high school that I teach at, we prepared custom gift baskets and sold them at a silent auction for charity. We created sports-themed gift baskets, self-care kits, baking ingredients, foreign snacks, and games night-themed gift baskets. With a special basket and colour scheme, they can drive sales for your business. Gift baskets are a timeless gift and can be expanded to generate more consistent sales, such as for weddings, baby showers, retirements, and birthdays. They can be adapted for many purposes, making it a great place to start for a holiday business idea.
The ideas presented were possible business ideas that could be lucrative during the holiday season. However, your business doesn’t have to necessarily sell a product or service that is in demand for the holidays. You can still make extra money and boost your business through a variety of incentives, sales, and special promotions. For example, gift certificates are an excellent option for many individuals; paper copies or online options can attract many looking for unique and creative presents. They’re also a great way to support your local businesses and put much-needed cash into their operations.
If you want to learn more about starting a business during the holidays, I made a video that talks more in detail about holiday businesses. Hope you enjoy!
Cheers and hope the holiday season goes well for you,
Mr. Leong
