Small Business Is Booming, Here's How to Cash In

Small businesses had a strong December as holiday shoppers made their purchases. In the U.S., the seasonally adjusted index for December reached 146, a 3-point increase from November. This figure is based on point-of-sale transaction data, encompassing card, cash, and check in-store and online transactions across approximately 2 million U.S. small businesses.

Fiserv, a leader in payment and financial services technology, reported a 4.9% rise in small business sales and a 5.5% increase in total transactions compared to December of the previous year. “This is just more good news for the small business community with millions of Americans choosing to become their own boss and start their own small business,” said Keith Hall, president and CEO of NASE. 

Why Consumers Prefer Small Businesses

This positive trend reflects a growing consumer preference for supporting local businesses. A recent American Express survey revealed that 64% of consumers actively seek out and support small businesses. This preference is driven by factors such as:

• Unique offerings: Small businesses often provide exceptional products and personalized services that larger corporations cannot.
• Community support: Supporting local businesses not only contributes to the vitality of the community but also fosters a sense of belonging and connection among its members, making them feel part of a larger movement.
• Customer service: Small businesses offer more personalized and attentive customer service, making each customer feel valued and important, which is a key factor in their preference for small businesses.

How to Cash In on the Small Business Boom

This trend presents a significant opportunity for aspiring entrepreneurs and small business owners. Here's how to capitalize on the current boom:

1. Identify a Niche: Find a gap in the market and offer a unique product or service that caters to a specific audience. This could involve conducting market research, identifying unmet needs, and developing a business plan that outlines how your unique offering will fill that gap.
2. Build a Strong Online Presence: A robust online presence is crucial in today's digital age. This presence includes a professional website, active social media profiles, and an effective online marketing strategy to improve local search results.
3. Provide Exceptional Customer Service: Go above and beyond to meet customer expectations. Personalized service, prompt responses, and building strong customer relationships are key.
4. Embrace Technology: Utilize technology to streamline operations, improve efficiency, and enhance customer experience. For instance, a small restaurant could use a point-of-sale system to manage orders and inventory, a salon could use a CRM platform to track customer preferences and appointments, and a retail store could use inventory management software to ensure they always have popular items in stock.
5. Engage with the Community: Participate in local events, partner with other businesses, and actively engage with the community through sponsorships and charitable contributions.

The Bottom Line

The recent surge in small business activity presents a promising outlook for entrepreneurs and existing businesses. Businesses can thrive in this dynamic environment by identifying a niche, building a strong online presence, providing exceptional customer service, embracing technology, and engaging with the community.