This tip was provided by the IRS. See: “Small business advertising and marketing costs may be tax deductible.” IRS Tax Tip 2021-159, October 27, 2021

Advertising and marketing costs must be ordinary and necessary to be tax deductible.

• An ordinary expense is one that is common and accepted in the industry.
• A necessary expense is one that is helpful and appropriate for the trade or business. An expense does not have to be indispensable to be considered necessary.

Here are a few advertising expenses that are usually deductible:

• Reasonable advertising expenses that are directly related to the business activities.
• An expense for the cost of institutional or goodwill advertising to keep the business name before the public if it relates to a reasonable expectation to gain business in the future. For example, the cost of advertising that encourages people to contribute to the Red Cross or to participate in similar causes is usually deductible.
• The cost of providing meals, entertainment, or recreational facilities to the public as a means of advertising or promoting goodwill in the community.

But here are some expenses that are not deductible:

Generally, small businesses can’t deduct amounts they pay to influence legislation, which includes advertising in a convention program of a political party, or in any other publication if any of the proceeds from the publication are for, or intended for, the use of a political party or candidate.

More tax-deduction information provided by the IRS

Learn more about business expenses, visit these IRS online resources.

• Small Business and Self-Employed Tax Center
• About Publication 535, Business Expenses

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Consumer spending on Halloween-related items is expected to reach an all-time high of $10.14 billion, up from $8.05 billion in 2021, according to the annual National Retail Federation’s Halloween survey conducted by Prosper Insights & Analytics.

Plans to celebrate Halloween are up this year compared with last year — and are close to pre-pandemic levels.

“Americans plan to spend more than ever to make this Halloween a memorable one,” NRF President and CEO Matthew Shay said in a release. “Retailers have implemented a number of measures, such as bringing in Halloween products earlier than normal, to ensure their shelves are stocked with seasonal candy, décor, and other items ahead of this important holiday.”

2021 | Halloween-related projections

65% | Percentage of Americans who intend to celebrate Halloween or participate in Halloween activities this year (up from 58 percent in 2020 and comparable with 68 percent in 2019 before the COVID-19 pandemic.

82% | Percentage of households with children who will celebrate Halloween. (Compared to 55% of households without children).

Annual traditions

66% | Hand out candy
52% | Decorate their home or yard
46% | Dress in costumes’
25% | Hosting or attending a party


$102.74 | On average consumers plan to spend $102.74 on costumes, candy, decorations, and greeting cards $10 more than they planned to spend last year Households with children are estimated to spend more than twice the amount than households without children ($149.69 compared with $73.57) on Halloween items.

The number of Americans planning to decorate for Halloween is on par with last year’s spike in interest, with spending on decorations continuing to climb to $3.17 billion, up from last year’s $2.59 billion.

Total spending on costumes is the highest it has been since 2017 — at $3.32 billion.

Halloween Trends | 2021

This year consumers are shopping for Halloween items earlier than ever, with 45 percent planning to shop in September or earlier and another 39 percent during the first two weeks of October.

“This year, in particular, we see an emphasis on Halloween spending from families,” Prosper Insights Executive Vice President of Strategy Phil Rist said. “Not only are those with children intending to spend more on Halloween-related items like costumes, they are also getting a kick start on their shopping, with more than half planning to start their shopping in September or earlier.”

Interest in pet costumes remains high with one in five intending to dress their pet up for Halloween this year. Younger adults are more likely to dress their pets in costume, as 28 percent of those aged 18–24 and 30 percent of those aged 25–34 plan to do so.

Costumes: Children

More than 1.8 million children plan to dress as Spiderman, more than 1.6 million as their favorite princess, more than 1.2 million as Batman and more than 1.2 million will dress as one of their other favorite superheroes.

Costumes: Adults

Of those planning to dress up for Halloween, nearly 69 percent of adults already know what their costume will be this year. More than 4.6 million adults plan to dress like a witch, more than 1.6 million as a vampire, more than 1.4 million as a ghost, more than 1.1 million as a cat and another 1.1 million as a pirate.

Costumes: Pets

The most popular costumes for pet lovers include a pumpkin (10 percent), hot dog (5 percent), superhero or cat (each tied at 4 percent), and bumblebee (3 percent).

The survey asked 8,061 consumers about Halloween shopping plans. It was conducted September 1-8 and has a margin of error of plus or minus 1.1 percentage points.

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$32 | The drop-off of $32 this year is blamed on the pandemic and related economic crunch.

“There is no question the pandemic has disrupted many aspects of Americans’ daily interactions and activities,” said NRF President and CEO Matthew Shay. “However, there remains a special significance around Valentine’s Day, and consumers are committed to celebrating friends and loved ones, even if that means having to alter those traditional holiday celebrations,” he said.

Survey highlight | This year is the first time consumers listed small businesses as a top-five shopping destination since the question was added to the survey in 2015.

$10.77 | Average spent by parents on items for children’s classmates and teachers, down from $14.45 last year.

$8.47 | Consumers plan to spend an average of $8.47 on colleagues, down from $12.96 in 2020.

74% | Percentage of consumers indicating the pandemic will directly impact their plans for the holiday.

24% | Percentage of consumers who plan to gift their loved one with an evening out, the lowest in the survey’s history.

41% | Percentage of celebrants who are planning a special dinner or celebration in the comfort of their own home.

“Consumers still feel it’s important to spoil their loved ones in light of the pandemic,” Prosper Insights executive vice president of strategy Phil Rist said. “This year’s total and average spending figures are near record highs, as the second-highest in the survey’s history.”

39% | Online is the most popular Valentine’s Day shopping destination
29% | Department stores rank second
17% | Local small businesses and specialty stores tied at 17%

The survey of 7,882 adult consumers was conducted January 4-12 and has a margin of error of plus or minus 1.1 percentage points.

Credit | Jamie Grill via Getty Images

Yesterday, Google published a blog post containing five easy ways that retail businesses can spruce up their Google presence to connect with holiday shoppers — wherever they may be. Thanks to Google for letting us share a version of this post by Rajas Moonka, director, product management, local shopping.

The holidays can be the most hectic — and the most important — time of the year for business owners. And this year shoppers have found ways locally for online shopping and curbside pickups.

To make the most of this season and connect with shoppers wherever they are, use Google Maps and Google Business Profile.

1. Claim your free Business Profile to put your best face forward on Google Maps and Search. Make sure your Business Profile is updated with helpful information about your store—like updated hours, a description and photos, shopping options, and all the safety measures you’re taking during the pandemic. Pro tip: Double check if your phone number is correct and turn on messaging so you can quickly connect with customers who have questions.

2. Share the gift of updated in-store inventory (online!):  Unsurprisingly, 77 percent of holiday shoppers in the U.S. said they will browse for gift ideas online this year instead of in-store. Thanks to Pointy from Google, you can easily show your products online so shoppers can see what you carry before they head to the store to make a purchase. Pointy connects to your point-of-sale system and automatically adds your in-store products to your Business Profile on Google. This helps you to appear in search results when shoppers are looking for items you carry.

3. Help them order ahead, still tucked in their beds: Searches for “curbside pickup” have grown more than 3,000 percent globally since last year. Let customers know how they can shop with you—whether you’re offering curbside pickup, in-store pickup or delivery options.

4. Oh, what fun it is to buy online for pickup and delivery: Add ordering link(s) for pickup or delivery to your profile. If you’re a verified retail merchant in the U.S., you can now add a link to your online store directly to your Business Profile on Google. This helps shoppers easily place a pickup or delivery order from you with a few simple taps!

5. ‘Tis the season to share more about your business: Shoppers are looking to purchase from  local businesses that they feel good about supporting. Spruce up your Business Profile and connect with your community by showing whether you’re LGBTQ-friendly or women-led, or in the U.S. and identify as Black-owned or veteran-led.

For more ways to deck out your Google presence, watch Grow with Google’s Quick Help YouTube videos. The short videos will help answer a variety of small business questions, from how to make the most of digital tools to how to start a live stream. We know the holiday season can be overwhelming, but with this checklist in hand there will be no need to get your tinsel in a tangle. 

While the overall number of shoppers from Thanksgiving through Cyber Monday dropped slightly from 189.6 million in an unusually robust 2019, this figure is still significantly higher than the 165.8 million shoppers in 2018.

• Between Black Friday through Small Business Saturday saw tremendous growth in online activity.
• For the first time, the number of online Black Friday shoppers passed the 100 million mark, up 8 percent over last year.
• The number of online Saturday shoppers, typically associated with small business shoppers grew even more, up 17 percent compared with last year.
• Online-only shoppers increased by 44 percent for the entire weekend, for a total of 95.7 million.

38% | Percenage of shoppers who aid they checked off holiday purchases in the week leading up to Thanksgiving.

52% | Percentage of holiday shoppers who said they took advantage of early holiday sales and promotions this year.

53% | Shoppers who say that promotions over the weekend were the same as they had been earlier in the season.

Thanksgiving in-store shopping was down given both the state of the pandemic as well as the number of retailers who opted to close on Thanksgiving Day, according to the NRF.

With consumer traffic moving to online channels, the number of in-store shoppers on Thanksgiving Day dropped by 55 percent from last year.

Black Friday dropped by 37%

An earlier NRF survey found that 70 percent of holiday shoppers say they feel safe shopping in stores this holiday season given the precautions retailers have taken for COVID-19.

Over the five-day period, shoppers spent an average of $311.75 on holiday-related purchases such as gifts or decorations, down from last year’s total of $361.90 but comparable to 2018’s $313.29.

Of that amount, nearly three-quarters ($224.48) was spent directly on gifts.

51% | Shoppers said they were more interested in holiday decorations and seasonal items.

77% | Percentage of shoppers who indicated they were more interested in supporting small businesses this year.

“The growth in online activity this year was significant, particularly for Black Friday and Saturday shoppers,” Prosper Executive Vice President of Strategy Phil Rist said.“With the start to the holiday shopping season continuing to move up even earlier, consumers will further utilize these channels.”

Top gift purchases over the weekend included

52% | Clothing
32% | Toys
32% | Books, music, movies, video games
29% | Gift cards, certificates
27% | Electronics

Shopping destinations

39% | Grocery stores
33% | Clothing stores
31% | Electronics stores

“Local businesses are core to our communities, but the impact of COVID-19 has been tough on business owners. Over the past few months, we’ve added tools and features to make it easier for businesses to keep customers informed, including the ability to add dining options and updated hours to Business Profiles.“
‘
Dominique McGowan
Program Manager, Local Small Business Products

Recently we’ve noted that Google is adding new local-oriented features to Business Profiles of verified brick & mortar stores (or, “physical storefront”) restaurants, and other Main Sreet small businesses. Google has also been adding tools and features to make it easier for local businesses to keep local customers informed, including the ability to add changing dining options and updated hours. 

Yesterday (May 11, 2020), Google announced it is adding “support links” to its Business Profiles. With this feature, merchants can provide their customers with donations or gift card links.

To start, Google is partnering with PayPal and GoFundMe for donations. For gift cards, merchants can link directly to the relevant page on their website or to their gift card offerings with one of Google’s eligible partners, which include Square, Toast, Clover and Vagaro.

(While Google is not charging merchants or consumers any fees, there may be partner processing fees associated with campaigns.)

According to McGowan, the feature launch will begin with a subset of businesses “to protect against misuse” with plans to expand to more countries, merchants, and partners in a safe and responsible way. The feature will first be rolled to the following countries:

• United States
• Canada
• United Kingdom
• Ireland
• Australia
• New Zealand

Business eligibility

According to Google, participation eligibility criteria includes:

• Businesses must be verified before March 1, 2020.
• Businesses must have a physical storefront.
• Owners and site managers of the Business Profile can use the posts feature to add gift-cards and donation links.
• The feature is available only in select countries.

For more information visit Google My Business help.

“Spending hasn’t changed much over the past few years, but we are seeing a noticeable increase in consumers whose Halloween purchases are inspired by their friends, neighbors and even celebrities on social media.”

Matthew Shay
NRF President and CEO

What percentage of survey participants are doing these traditional Halloween activities?

95% | Buying candy
72% | Decorating house or yard
67% | Dressing in costumes
44% | Carving a pumpkin
32% | Attending a party
29% | Taking children trick or treating
22% | Visiting a haunted house
17% | Dressing pets in costume.

Where are celebrants shopping for Halloween merchandise this year (2019)?

42% | Discount store
36% | Specialty Halloween or costume store
25% | Online
25% | Grocery store
23% | Department store

Top Costumes (Children)

“Grownups who celebrate may be looking for new ideas, but for children, princesses and superheroes are perennial favorites,” Prosper Insight’s Phil Rist said. Costumes you’ll be seeing children wear in 2019.

7.9% |Princesses (3.1 million children)
6% | Superhero (2.4 million)
5.2% | Spider-Man (2 million)
3.9% | Avengers character other than Spider-Man (1.5 million)
3.5% | Batman (1.4 Million)
3.3% | Witch
2.8% | Ghost
2.2% | Vampire
2.2% | Frozen (Elsa, Anna
2.1% | Pirate

Top Costumes (Adults)

Five million adults plan to dress in a Halloween costume. Here are the most popular. (Ranked by percentage of Halloween participants wearing a costume.)

8.9% | Witch
3.6% | Vampire
3.1% | Superhero
2.7% | Pirate
2.5% | Zombie
2.0% | Ghost
2.0% | Avengers character (excluding Spider-Man)
1.9% | Princess
1.8% | Cat
1.7% | Spider-Man

Top Costumes (Pets)

29 million people plan to dress their pets in costumes for Halloween. Really. Of those who plan to dress there pets, here are the most popular costumes.

9.3% | Pumpkin
7.2% | Hot dog
7.2% | Superhero
3.9% | Bumble Bee
3.2% | Cat
2.5% | Witch
2.2% | Lion
2.1% | Dog
2.0% | Devil
1.7% | Shark

Happy Halloween to the small businesses that make Halloween a fun and prosperous event each year.

(Originally published, February 20, 2018) Our friend and regular contributor, Becky McCray, an expert in small town and rural businesses, recently shared on Small Business Survival a business idea and marketing outreach program that convinces us what comes first in business: First comes the opportunity, then the creative idea is hatched. Here’s Becky’s story.

Everyone loves little Easter baby chicks.

Children especially love baby chicks. And their parents just love how much their young children love those baby chicks.

Unfortunately, that too often leads unprepared parents to purchase a chick or two to take home. Every Easter, we hear about families who buy chicks for their children, only to realize baby chicks don’t really fit into their lives. Left on the side of roads or posted for free on Craigslist, the sweet, active chicks are left scared and alone.

For some people, that might be viewed as a challenge. But to the Omaha, Nebraska farmer Mariel Barreras, it looked like a business and community outreach opportunity that reinforces her family’s successful educational outreach programs the Barreras Family Farm carries out year-round. And so she started the Barreras Family Farm’s Rent-a-Chick Educational Program.

That’s right, instead of selling a family two chicks to take home to an unprepared setting, Barreras “rents” two Easter chicks each to 60 families, day-care centers or other programs.

In addition to the chicks, the family takes home a kit that includes:

• Tote with breathe through lid
• Heating pad that is fire safe and won’t burn your children
• Water dish
• Food dish
• Food for length of the program
• Potty pads
• Chick health and safety class
• Emails with activities sent during the program duration
• Certificate for a FREE dozen eggs that your chicks will begin laying in the fall.

The Rent-a-Chick program educates families on basic chick care. Little downy chicks go to families in pairs. They move in with the family for two weeks who care for the chicks and teach them how to interact with humans. In return, the chicks teach the families how to feed, water, exercise, and love on little animals that are completely dependent on them.

Kids are encouraged to name their chicks and come back to check on them.

After two weeks the chicks return to Barreras Family Farm flock.

The host families even receive a certificate for a free dozen eggs which their chicks will begin to lay in the fall.

Like we said: Everyone loves baby chicks.

Especially when they connect young people with small business owners who develop experiences that can lead to lifelong customer relationships.

Link HT: @maniactive

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Previously on SmallBusiness.com | “Infusionsoft Launches Propel, a DIY Marketing Automation Platform for Small Business“

“With the introduction of our new Keap product, we are able to serve an even larger market of small service providers who have been shut out of the benefits of automation because software providers have made it too hard and expensive.” said Keap COO Keith Reed.

Targeted at small service providers such as interior design, home repair, fitness or business consulting, “Keap automates repetitive sales and client-related tasks like appointment scheduling following up on leads/quotes, and collecting payments,” according to Reed.

“As part of a multi-year company and product transformation, we set out to better understand how small businesses meet customer demands today,” said Keap CEO Clate Mask.

Some features of the new Keap software

• Organizes and centralizes customer information and daily work in one place 
   
• Frees small businesses from repetitive tasks to save time
   
• Helps small businesses provide great service to their clients –

Photos: Keap by Infusionsoft, GettyImages

Currently, it has 26 Boards and about 13,000 monthly viewers. However, we have a limited crew here (Translation: my dog, Button, does much of the photo selection). Button and I are fans of Pinterest because we’re fans of creative offices, and funny signs and, well, go see for yourself.

Current SmallBusiness.com Pinterest Boards

If you’d like Button and me to feature your business or idea or category photo, send a link to us at Rex@SmallBusiness.com. Or if you have ideas for more boards, let us know that also.

Below are some of our current PInterest boards we’ve featured in previous articles. While 14,000 viewers visit the boards monthly, we’d like your help to grow our collection and categories. Email a link with featuring something that may go great on a current board, or email with a topic for a new board. (Limited resources means we can’t promise we will include your’s but we’ll try.

• Office Tips & Tricks | Cord organization
• Great Places to Shop Local 
• Creative Spaces
• Standing (or Stand-up) Desks
• Desks and Workspaces
• UpCycled Office Desks
• Office Pets (Button manages this board)
• Infographics About Small Business
• Logos
• Really Awful PowerPoint Slides
• Unique Office Buildings
• Mobile Offices
• Small Business Small Office Space
• Awesome Office Whiteboard Art
• Why We Love Local Businesses
• Small Business Inspiration
• Office Design Ideas
• Factory Offices
• Commercial Vans
• Sketchnotes
• Whiteboard Drawing Resources
• Maker Spaces