Posted: November 14, 2011

Home Depot and other large retailers already have Christmas trees in their stores. Small, locally owned businesses need to be thinking, and acting, now to prepare for the holiday season, too. Black Friday and Internet Monday are literally just around the corner.

With big retailers slashing prices and consumers more price-conscious than ever, how can small retailers compete?

In a recent discussion thread in the Small Business Development Center Think Tank, several strategies were put forth on how to get the best return and give customers a pleasurable experience.

Here are five recommendations to consider:

Start now: This is kind of obvious, but the demands of the shopping season, Thanksgiving and the day-to-day operation of the business all take away from planning time. Retailers need to be thinking about Black Friday and Internet Monday and just how they will position themselves for these events. You should know the answers to these questions as soon as possible: How are inventories, what sorts of specials will be offered, what sort of staffing levels will be required, and how will you entice customers into your establishment?

Enhance the shopping experience: Yes, price certainly does matter, but shopping is also an emotional experience, especially during the holidays. Emphasize the shopping experience through both auditory and visual enhancements. Look for ways to offer added value for your customers. As a small retailer, emphasize your uniqueness and the local nature of your business. Consider sponsoring local charities or conducting locally focused events in your store. The 3-50 Project states that for every $100 spent with local independent stores, $68 returns to the community through taxes, payroll and other expenditures. Large national stores return only $43, and Internet shopping returns $0 to the locality.

Reach out to your customers: With the proliferation of technology, email, social media and a whole host of software applications to support customer relationship management, small retailers now have the ability to "fight above their weight." It is important to time the receipt of your messages in order to achieve a maximum return for your investment. Just what sort of "electronic" strategy will you develop or is one currently in place?

Capture the early birds: These are the customers who plan ahead and are looking for easily accessible ways to fulfill their plans. It cannot hurt to reach out and get their attention as soon as possible. If the data is available, reach out to those who shopped early with you last year and remind them that you would certainly appreciate being able to increase their enjoyment of the season by shopping early.

Capture last-minute shoppers: Speaking as one of these individuals, what I want is a simple, stress-free experience (I am already under enough stress thanks to my procrastination, thank you very much). Bundling presents and offering ideas and recommendations to the last-minute contingent will go far in generating future customer loyalty.

The pressures that both retailers and their customers are experiencing because of the tenuous nature of local, national and international environments are certainly real and potentially debilitating. Having an aggressive, sound and flexible plan in place is one way that these pressures may be mitigated.

Jim Carroll is the executive director for the Small Business Development Center of Hampton Roads and the vice president for small business for the Hampton Roads Chamber of Commerce. He can be reached via email at JCarroll@hrccva.com.