3 Challenges Small Business Owners Are Facing This Holiday Season -- and How to Cope With Them

You may have your work cut out for you.

Many small business owners look forward to the holiday season because that's when revenue tends to really pick up. But that doesn't mean running a small business during the holidays is an easy thing.

In fact, this year, small business owners are facing a number of unique challenges. Here are the top three issues they're grappling with, according to a recent survey by Incfile.

1. Boosting sales

Many small business owners have seen their margins shrink this year due to the higher cost of procuring goods and the higher cost of labor. As such, many are eager to boost sales during the holidays -- but are also having a hard time doing that.

It's easy to see why. Many consumers are coming into this year's holidays with less money to spend on gifts and seasonal purchases. We can thank inflation for that. Since the cost of basic expenses like food, shelter, and utilities has soared, it stands to reason that consumers don't have as much flexibility to spend money on non-essential items.

If you're having a hard time boosting sales, try offering discounts on some of your more popular items to get people in the door. It's a tactic large retailers employ during the holiday season in the form of doorbusters.

Another option is to try to encourage your most loyal customers to bring in more business. You can offer a "bring a friend, get a free gift" deal to get more people in the door.

2. Hiring seasonal employees

Many small businesses need additional hands on deck during the holiday season. If you're having a hard time hiring seasonal workers, you may need to think outside the box.

One option there is to see if any of your frequent customers are interested in a seasonal gig. You can offer perks like generous wages and in-store discounts to get regular shoppers on board.

It might also help to turn to local businesses in your area and see if anyone is overstaffed. Some businesses hire aggressively for the holiday season and end up having to cut their temporary workers' hours after the fact. If a business in the area has that problem, you may be able to "steal" one of its workers (in a good way, of course).

3. Supply chain issues

Although some of the supply chain issues that came about in 2021 have resolved, there are still snags that are impacting small businesses. If you're having trouble accessing the inventory you need, one option is to talk to fellow small business owners in your area and see if you can increase your network of suppliers.

You can also try sourcing different items locally, especially if you need inventory in a rush. A local business may be more inclined to help another local business out.

If you're experiencing your share of challenges this holiday season, you're not alone. But do your best to work through those hiccups so you can close out 2022 on a financially sound note.