Holiday Hours and Small Business Strategy

By: Paul Claybrook, MS, MBA

Holidays are a time for celebration, rest, and family. But for small and remote business owners, they also represent a strategic decision point. Should you keep your business open during major holidays, or is it better to close shop temporarily? This question is not as simple as it might seem. There are financial, operational, and personal considerations to weigh. Making the right decision can enhance customer loyalty, improve employee morale, and even impact long-term revenue. This article explores the key factors small business and remote business owners should consider when deciding whether to remain open on holidays.

Understanding Your Customer Base

The first and perhaps most critical step in determining holiday hours is to analyze your customer base. Every business serves a unique group of clients with specific expectations and behaviors. For instance, if you operate a remote graphic design studio catering to international clients, holidays in your country might not align with the working schedules of your clients abroad. Conversely, if your clientele is primarily local, they may expect closures during national holidays.

Start by asking yourself a few essential questions: Do your customers typically reach out or place orders during holidays? Are your products or services considered essential or discretionary? For example, an online tech support service may be considered essential, especially during busy seasons like Black Friday or Christmas when people receive new devices. On the other hand, a boutique home décor store might see a significant drop in traffic during the same period as people focus on family and festivities.

You can also analyze past sales data or website traffic analytics to identify trends. If your revenue spikes during certain holidays, it might make sense to stay open or offer special promotions. If there's a consistent dip, that might justify taking a break. Understanding customer expectations ensures you align your availability with their needs, which in turn supports your long-term business growth.

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Assessing Financial Implications

Every decision in business ultimately comes down to dollars and cents. Staying open during holidays often involves additional costs, even for remote businesses. You may have to pay employees holiday rates, run extra customer service shifts, or invest in marketing special holiday promotions. For solo entrepreneurs, the cost might come in the form of lost personal time, which is harder to quantify but equally important.

To assess the financial implications, conduct a simple cost-benefit analysis. Start with estimating how much revenue you expect to generate by staying open. Then, list the costs associated with being operational—this might include employee wages, utilities (for physical businesses), digital ad spend, or even subscription costs for tools you’ll need during extended work periods.

Don’t forget to factor in the long-term implications. Staying open and providing excellent service when competitors are closed might boost customer loyalty and future revenue. On the flip side, staying open and delivering subpar service due to holiday burnout can damage your reputation. Financial viability isn't just about immediate profit but also about sustaining your brand’s credibility and performance.

A useful strategy is to test the waters. You could remain partially open—perhaps by offering limited services or reduced hours—and measure both the costs and the revenue generated. This trial-and-error approach provides concrete data to guide future decisions and helps you stay nimble in a competitive environment.

Employee and Contractor Considerations

If your small business includes employees or contractors, their well-being should be a major part of your decision. Burnout is a real issue in small and remote businesses, where staff often wear multiple hats. Holidays provide a natural opportunity for rest and rejuvenation. Insisting that your team work through every holiday can lead to resentment, reduced productivity, and even higher turnover.

Consider offering flexible options. For instance, you might allow team members to volunteer for holiday shifts at higher pay rates. You could also rotate responsibilities so that no one feels unfairly burdened. If you run a solo operation but work with freelancers or consultants, make sure to ask about their holiday availability well in advance. Many freelancers schedule time off just like traditional employees, and assuming they'll be available could lead to missed deadlines and strained relationships.

Communication is key. Make expectations around holiday availability clear in contracts or employee handbooks. Set deadlines for requesting time off, and be transparent about which holidays the business will be officially closed. Clarity helps avoid last-minute scrambling and builds a culture of trust.

Finally, be mindful of cultural and religious holidays that may not be on your radar. In a diverse team, what’s a regular workday for you might be a significant holiday for someone else. Acknowledging and accommodating these differences, where possible, not only improves morale but also reinforces an inclusive workplace culture.

Operational Feasibility

Even if customer demand and financial projections suggest staying open, you must also assess whether it’s operationally feasible. For physical businesses, this includes staffing, supply chain logistics, and even security. For remote businesses, feasibility hinges more on things like system maintenance, client availability, and technical support.

Let’s say you run a remote IT support firm. You may have clients who need emergency help on holidays, but are your internal systems robust enough to support operations without your usual full team? Do your software vendors provide support during holidays? Are you comfortable addressing major issues if they arise while most other services are closed?

For small product-based businesses, logistics become even more complex. If you can take orders but can't fulfill them until after the holiday, are you setting realistic delivery expectations? Will delays affect customer satisfaction or lead to chargebacks?

One way to tackle this issue is to automate as much as possible. You could schedule social media posts, email campaigns, and even product launches using tools like Buffer, Mailchimp, or Shopify’s automation features. For customer service, an AI chatbot or detailed FAQ section can help bridge the gap when live support isn’t available.

Still, automation is not a cure-all. You must realistically assess whether the customer experience can be maintained at a high standard without full hands-on involvement. If not, staying open may do more harm than good.

Personal and Family Balance

As a small or remote business owner, your personal life often intertwines with your professional responsibilities. Holidays are typically meant for rest, celebration, and reconnecting with loved ones. Skipping that time in favor of work can have emotional and psychological consequences, including stress, resentment from family members, and eventual burnout.

This is particularly relevant for solo entrepreneurs, who often feel they must always be available to maintain momentum. But the reality is that stepping away from the business, even temporarily, can lead to better long-term performance. Time off gives you a chance to reflect, strategize, and return with renewed energy and creativity.

Consider the opportunity cost of not taking a holiday. Are you missing out on creating memories with family? Are you neglecting self-care in a way that will reduce your effectiveness later? Sometimes, the most business-savvy decision is to close up shop and take a genuine break.

Of course, this doesn’t mean disappearing entirely. Many entrepreneurs find balance by checking in once a day or scheduling a few work blocks during the holiday period. The key is to set boundaries. Let customers know your holiday hours ahead of time. Set up out-of-office replies and clearly indicate when you’ll be available again. This way, you can honor your need for rest without leaving clients in the dark.

Competitive Advantage or Risk?

One lesser-discussed aspect of staying open during holidays is the potential competitive advantage—or risk—it poses. Being available when your competitors are not can earn customer loyalty, especially in service-oriented industries. If your business can deliver during high-stress periods like Christmas or New Year’s, customers will remember.

On the other hand, if staying open becomes your brand’s defining feature, it can be difficult to scale or step back later without disappointing loyal clients. Additionally, competitors may start to match your availability, erasing your advantage and turning holiday operations into a baseline expectation rather than a differentiator.

You should also be cautious about overextending your business simply for the sake of being open. Customers will not appreciate 24/7 availability if it comes with poor service or delays. Sometimes, exclusivity can work in your favor—being closed for a holiday can create a sense of scarcity or urgency, driving more engagement before and after your break.

One smart approach is to selectively choose which holidays to stay open for based on data and client needs. For instance, a business serving the fitness industry might stay open on New Year’s Day to capitalize on resolutions but close for Thanksgiving or Christmas. By being strategic, you can gain competitive advantage without sacrificing work-life balance or operational excellence.

Communication and Policy Development

After you’ve made your decision—whether to stay open, close entirely, or operate on limited hours—it’s crucial to communicate it clearly and professionally. Inconsistent or last-minute announcements can confuse customers, frustrate employees, and harm your brand.

Start by creating a simple holiday hours policy. This can be a document or internal page outlining which holidays your business observes and how operations will be adjusted. Include information on customer service availability, shipping delays (if applicable), and how clients can reach you in case of urgent needs.

Post your holiday schedule well in advance on your website, social media, and email newsletters. Use clear, friendly language that reflects your brand voice. For example, "We’re taking a short break to spend time with loved ones and recharge. Orders placed between December 24 and 26 will ship on the 27th. Thanks for your understanding!"

You can also turn holiday closures into marketing opportunities. Consider framing your break as a reflection of your company values—prioritizing family, self-care, or employee well-being. This can humanize your brand and foster customer goodwill. Transparency is key. Most people understand and respect boundaries, especially when they’re communicated proactively.

Conclusion: A Strategic Pause

Deciding whether to stay open during holidays isn’t just about immediate sales—it’s a strategic decision that touches every part of your small or remote business. From financial feasibility and customer expectations to employee morale and personal well-being, the factors are many and varied. The right answer depends on your business model, industry, team structure, and personal values.

The most successful entrepreneurs approach holidays with intention. They analyze data, listen to their team, communicate clearly, and most importantly, allow themselves the freedom to evolve their approach over time. You don’t have to get it perfect the first time. What matters most is that the decision aligns with your long-term goals and your vision for a sustainable, human-centered business.

Whether you choose to stay open, close, or find a hybrid approach, be strategic, be kind to yourself, and use the holidays as an opportunity to grow—both professionally and personally.

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