Small Business Gift Guide: A Business Owner’s Guide to Holiday Gifting

For many small business owners, giving gifts around the holidays is a tricky prospect. On one hand, they want to thank loyal customers and clients for shopping small, reward reliable employees, and show appreciation for dependable vendors. But on the other hand, they don’t want to offend anyone or break their budget on holiday presents. Plus, it can be hard to decide who to give gifts to.

Because of that, not all businesses give customers and clients gifts. But many do. Gift giving around any special occasion, including the holidays, can be a good way to show gratitude and spread some holiday spirit. It’s a time-honored tradition, but it’s essential to show proper etiquette when doing so. This guide walks through some essential tips and tricks to follow to nail holiday gift giving.

Who should a business owner give gifts to?

Gifts are a powerful tool to show appreciation to customers, corporate clients, and employees; however, that doesn’t mean everyone in the office should receive a shiny package during the holiday season. When it comes to customers, it’s prudent for small business owners to stick to giving gifts to established customers only (not ones they’re hoping to attract; that could seem like a bribe). This is, of course, different from giving out free t-shirts at a community event; that established-customers-only restriction just applies to gift-giving, not giveaways.

Additionally, many companies opt to give gifts to their employees. In particular, small business owners and managers should strive to reward their assistants and secretaries with small gifts that demonstrate their gratitude. If a business owner does so, it’s wise to give these gifts in private (no one wants to create office drama by making certain employees feel excluded because they didn’t receive personalized gifts and others did).  

It’s worth noting that some companies have policies in place restricting the types or values of gifts their employees can accept. While these limitations are more common at large corporations and government organizations, even small business owners might want to inquire with their human resources representative before sending, say, a fruit basket or bottle of wine. No recipient wants to send back high-quality products given to them because the company policy requires them to.

How much should a business owner spend on gifts?

Deciding whom to give gifts to is only half the battle. The next step is determining how much to spend on holiday presents. After all, overly exorbitant gifts can make clients uncomfortable, while cheap gifts can make a business seem miserly. Neither of those options is likely to put customers in the holiday spirit.

If a business owner wants to give a gift to one of their vendors and they aren’t familiar with that company’s policy for accepting gifts, here’s a good rule of thumb: aim to keep holiday presents around $25.

There’s a lot more freedom in the potential price range when a business owner buys gifts for their own employees. For example, according to one 2017 study, 73% of employers spent between $50 and $75 per employee on holiday gift giving.

However, many owners factor in an employee’s length of service when making gift-giving decisions. An employee who has been with the company for a decade probably merits a more expensive gift than the one who started at the company last week. For example, a business owner might give a bag of gluten-free gingerbread cookies or a soft, cozy blanket to the employee they hired before Thanksgiving, but they might give a sizeable gift card to a local fine dining establishment to the personal assistant who’s worked for them for years.

What makes a good holiday gift?

There’s no one perfect gift for small businesses to give over the holidays. After all, the ideal present depends on the individual, the giver and recipient’s unique relationship, and the budget. However, the most commonly gifted items include calendars, candles, gift cards, flowers (especially for women), gift baskets packed with sweets and cakes, and wine. Gourmet coffee, tea, or cocoa also makes a good, affordable gift for employees or coworkers. Additionally, some companies choose to make charitable donations in the recipient’s name.

While businesses are often tempted to give out branded items — it’s tempting to get rid of those leftover branded company-logo Frisbees, travel pouches, backpacks, or visors — recipients will quickly (and correctly) peg these types of gifts as bulk marketing products in disguise. It’s “stuff” that they’ll probably throw away (or it’ll disappear into an abandoned space in their desk drawers). If gifting swag is the strategy, though, it’s prudent to choose classic or trending items that recipients will have a legitimate use for in daily life. For example, branded sets of earbuds (or earbud cases), thumb drives, power banks, or similar items can give actual benefits to the people who receive them.

What about alcohol? Before a business owner puts a bow on a nice bottle of wine, they should ensure that the recipient enjoys an occasional drink; the last thing they want to do is give an expensive bottle to a person who prefers a dry lifestyle (or worse, to someone who’s sober curious or working on becoming sober). On a similar note, it’s best for a business owner to avoid joke gifts unless they’re certain they’ll be well received. They might seem fun, but it’s easy to offend someone with jokes.

Finally, gift givers should be cognizant of cultural differences that might affect what presents are considered appropriate. For example, clocks are associated with death in some Chinese dialects. Similarly, certain flowers are linked with funerals in Russian culture. When giving gifts to someone from another country, it’s wise to do some research instead of simply selecting items on instinct or personal preference. That care can help avoid an awkward situation.

When should a business owner give out their gifts?

After deciding what to purchase, going shopping for it, and wrapping it up in a nice box, it’s time to decide when to give the presents out. Technically, there’s no wrong time to give a holiday gift, but some occasions are better than others. For example, suppose a small business owner wants to give gifts to their accountant, but the accountant closes their office during the week between Christmas and New Year’s to spend time with their family and other loved ones. The gift-giver would want to ensure they mail the gift (or drop it off in person before that closure. For a similar reason, it can be helpful to use a generic message in the card (i.e., “Happy Holidays” covers all of December and even the first day of January, while “Merry Christmas” or “Happy Hannukkah” can end up being outdated for mailed gifts).

While most companies wait for December to hand out gifts, this is more of a tradition than a rule. A business owner can opt to acknowledge and thank their customers at any time of the year. Moreover, they’re free to give gifts to employees and vendors whenever they want to show their gratitude. Maybe a business wraps up a big project, so the boss plans to hand out Starbucks gift cards or sponsor an employee dinner to show their appreciation. Even these small gestures can go a long way. 

A 2018 Knack Business Gift Satisfaction Survey Report revealed that 33 percent of respondents who received a memorable corporate gift felt more connected to the company that sent it. By giving clients and customers appropriate, useful gifts during the holidays, small businesses can increase their odds of finding success in the New Year.

Next Up: Check out the “How to Start a Christmas Light Business” guide.