Is Black Friday Worth It For UK SME's in 2024?

As Black Friday and Cyber Monday continue to grow as key retail events, small businesses have a tremendous opportunity to capitalise on this shopping frenzy. With UK sales hitting £13.3 billion in 2023 and 26.9 million shoppers expected to spend an average of £113 each, the potential for growth is substantial.

However, with the right strategies in place, you can make the most of this massive opportunity, even if you're dealing with cash flow challenges.

Here’s your ultimate guide to maximising sales this Black Friday and Cyber Weekend, with tips on pricing, marketing, shipping, and more.

Why Black Friday & Cyber Monday Matter for UK SMEs

In 2023, UK sales for Black Friday hit a significant £13.3 billion, marking a 7.3% increase from the previous year. With nearly 27 million adults expected to take part, these retail events present a massive opportunity.

But is it worth the investment for small businesses?

Despite the challenges of cash flow, Black Friday and Cyber Weekend can account for up to 25% of many businesses' total November sales. For small businesses, it’s a calculated risk that often pays off. Scaling up for these events requires a significant investment in inventory, marketing, and operational capacity. The key is to plan ahead and make strategic decisions that align with your business goals.

Smart Pricing: Value Over Discounting

While offering heavy discounts might seem like the go-to strategy, studies show that strategic pricing often outperforms deep discounts. For example, charm pricing—where products are priced at £39 instead of £40—has been shown to increase sales by as much as 24%.

Rather than cutting prices drastically, focus on perceived value. A study showed that an item priced at £39 actually outsold the same item priced at £34. Focusing on the value proposition will resonate more with your customers than just offering the lowest price.

Cash Flow Challenges: How to Overcome Them

Nine out of ten small businesses struggle with cash flow issues, and one in twelve have no reserve cash at all. This can make scaling up for Black Friday feel daunting. However, there are ways to manage the financial strain:

• Plan early: Start budgeting and forecasting 3–6 months in advance.

• Use financing options: If cash flow is a concern, consider alternative financing to help invest in inventory, marketing, and operations.

Approved Finance offers flexible financing options designed for small businesses. These solutions can help you invest in your business without the stress of cash flow constraints, enabling you to make strategic purchases and enhance your marketing efforts. Plus, applying for finance with Approved Finance won’t impact your credit score, so you can access the funding you need without compromising your financial future.

Creating a Winning Marketing Strategy

Black Friday and Cyber Weekend are perfect times to make your brand stand out. 77% of businesses use social media for promotions, and 76% of shoppers report being influenced by social media posts when making purchases. Email marketing is also a key tool, with 87% of brands considering it vital to their success.

Pro Tip: To maximise the impact of your promotions, start your campaigns several weeks before Black Friday. This builds anticipation and excitement among your loyal customers, encouraging early engagement and boosting sales.

Focus on highlighting your value and long-term savings, especially with a growing segment of budget-conscious shoppers. Financial concerns are driving more people to seek out promotions, creating an opportunity for your business to stand out with compelling deals.

Optimise Fulfilment: Smooth Delivery = Happy Customers

A key challenge during Black Friday and Cyber Weekend is ensuring your fulfilment processes are ready to handle the surge in orders. 40% of customers won’t return after a shipping delay, and 58% will leave negative reviews after a poor delivery experience. To keep customers satisfied and reduce the risk of dissatisfaction, make sure your shipping and fulfilment processes are optimised:

• Assess your fulfilment processes now to spot any potential bottlenecks.

• Consider negotiating better shipping rates or offering alternative delivery options, such as click-and-collect, to make it easier for customers to receive their purchases.

Effective fulfilment management will ensure you meet customer expectations and keep your reputation intact.

Plan Ahead: Key Timelines for Success

Timing is everything when it comes to Black Friday and Cyber Weekend. To successfully manage the sales surge, start planning ahead:

• 3 months before: Focus on stock management and ensure you have the right products available.

• 1 month before: Launch your marketing campaigns to build awareness and excitement.

• 2 weeks before: Optimise your fulfilment processes and finalise shipping details.

By following this timeline, you’ll be ready to tackle the busy period and maximise sales.

The Bottom Line: Set Your Business Up for Success

The Black Friday and Cyber Weekend events are an incredible opportunity for small businesses to boost sales, attract new customers, and increase their market presence. However, the key to success lies in planning ahead, using smart pricing strategies, optimising fulfilment, and ensuring you have the financial resources to scale up effectively.

With Approved Finance, you can access the funding you need to invest in your business without worrying about cash flow constraints. Start planning now and set your business up for a successful holiday season!

For more information on how we can help you secure financing and achieve your goals, visit our website today.

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Ready to make this Black Friday your best yet? Apply for finance with Approved Finance today and take the first step towards growth and success!