5 Ideas for a Small Business Holiday Party and How to Plan It

Once you’ve prepared to ramp up sales this holiday season, you may want to plan a holiday party. It’s the perfect opportunity to reflect on the successes of the year, show appreciation to your team and foster a spirit of camaraderie within the workplace. For small businesses, a well-planned office holiday party can build team morale and company culture, all while having a bit of seasonal fun.

With a bit of creativity and planning, you can throw a memorable holiday party that doesn’t break the bank. Let’s dive into some exciting ideas for a small business holiday party and tips on how to plan it.

Small Business Holiday Party Ideas

Consider these fun, festive company holiday party ideas to take your annual event to the next level and leave a lasting impression on your employees.

1. Throw a themed party.

A holiday theme can add excitement and give employees a reason to dress up and embrace the season. Whether you go for a classic “Winter Wonderland,” a nostalgic “Ugly Sweater Party,” or a “Hollywood Glam” night, having a party theme helps set the tone for the event. You can also take it up a notch with a themed photo booth, decor, holiday music and food to immerse everyone in the holiday spirit. Themed parties are fun, easy to organize, and provide excellent opportunities for photo ops.

2. Plan a gift exchange.

Gift exchanges are a holiday staple and offer a great way to get everyone involved. Consider different types of gift exchanges to suit your team’s personality. The traditional “Secret Santa” is always a favorite, but you can also try a “White Elephant” exchange for a humorous twist, where participants bring quirky or funny gifts that get “stolen” throughout the game. To make the exchange even more meaningful, set a reasonable spending limit and suggest themes for gift ideas, such as “handmade gifts” or “local finds.”

3. Foster some friendly competition.

Nothing encourages team building quite like a bit of healthy competition. Organize holiday-themed party games, like trivia, gingerbread house or cookie decorating contests, a scavenger hunt, or holiday costume contest. You could even set up a holiday escape room challenge if space allows. Small prizes, like gift cards or treats, make for fun incentives without adding too much cost. The friendly rivalry is sure to spark laughter and bring out team spirit.

4. Plan a group activity.

For a more engaging work party, organize a team-building activity everyone can participate in together. Whether it’s an in-person cooking class, wine tasting, painting session or even a holiday-themed karaoke night, shared experiences can help create memories that last beyond the holiday season. Virtual activities, like an online trivia game or DIY craft class, are also options for remote teams. The key is to pick a team-bonding activity that aligns with your employees’ interests and comfort levels.

5. Host a “potluck” style dinner.

A holiday potluck is a great way to celebrate diverse cuisines and cultures within your team, while also keeping catering costs low. Each team member can bring a dish to share, coordinating so there are a good mix of appetizers and entrees. This not only makes for a delicious spread, but also opens up opportunities for people to bond over their favorite recipes and holiday traditions. To make it even more festive, you could create a holiday cookbook with everyone’s recipes as a keepsake.

How to Plan a Small Business Holiday Party

Once you’ve chosen an idea that fits your team, the next step is to organize and plan. Here are some party-planning tips to help you pull off a memorable and stress-free holiday celebration.

1. Set a budget.

A solid budget sets the foundation for any successful holiday office party. Determine how much you’re willing to spend on the party venue, food, activities and decorations. Sticking to a budget will help you make decisions on what to prioritize, ensuring that your team has a fantastic time without overspending. If funds are limited, consider lower-cost options like a potluck, a virtual party or a simple in-office gathering.

2. Ask employees for input.

Asking employees for feedback on their preferences can make the party more enjoyable for everyone. Use a quick survey to ask about ideas that they’re interested in, dietary preferences, and if they’d prefer an offsite venue or something more casual like a happy hour at the office. Including employees as planners in the process can make them feel valued and ensure that the event is tailored to their tastes.

3. Pick a venue.

The location can set the mood for your holiday party, so choose wisely. If you’re working with a larger budget, renting a cozy event space or restaurant can be exciting. For smaller budgets, hosting the party in the office or a local park can still be festive with the right decorations and atmosphere. Make sure the venue can accommodate your group comfortably and that it aligns with the planned activities.

4. Organize the food and drinks.

Food and drinks are at the heart of any holiday celebration. Once you’ve established the guest list and dietary preferences, consider your options. You could hire a catering service, arrange for a buffet, or go with the potluck option if you’re aiming for a budget-friendly approach. When it comes to alcohol, working with a business licensed to serve alcohol can help keep people from drinking too much. You could even hand out a specific number of drink tickets. Other ideas would be to only serve beer and wine, and to arrange for employees’ transportation home via ride-sharing services.

5. Plan your activities.

A great holiday party includes more than just food — it’s about interaction and fun. Based on the ideas you’ve chosen, make sure activities are well-organized and accessible for everyone. Whether it’s a friendly game, a gift exchange or a group activity, keep the vibe light and festive. If possible, have a few volunteers help coordinate to keep the event running smoothly.

6. Send out invitations.

Once your plans are in place, send out invitations well in advance. Choose a fun, festive design, and include all necessary details, such as the location, dress code, theme (if any), and RSVP information. Sending digital invites can simplify the process and make it easy to track responses. For extra flair, add a few teaser details about activities to build excitement.

7. Recognize and celebrate your employees.

The holiday party is a perfect opportunity to express gratitude to your team for their hard work throughout the year. Consider taking a few minutes during the event to thank employees individually or as a group. Small recognition awards or tokens of appreciation, such as gift cards or company-branded items, are thoughtful gestures that show you value their contributions. This can go a long way in making your employees feel appreciated and motivated as you head into the new year.

The Bottom Line

Planning a small business holiday party may take a bit of time, but it’s worth the effort to create a memorable and joyful experience for your team. From choosing a fun theme to organizing engaging activities, each step allows you to show holiday appreciation for employees and celebrate together. By following these tips and ideas, you can ensure that your party will be full of holiday cheer, leaving everyone excited for the next one!

Small business owners sound off: What do you do to make your small business’s holiday party a success?

Focus on connection rather than perfection.

For our holiday parties, I always aim to create an experience that’s fun but also meaningful. One thing I’ve found successful is to include everyone in the planning process—asking team members about their favorite holiday traditions or foods. This not only brings a unique touch to the event but also shows that each person’s input is valued. A few years back, we even had a “potluck-style” holiday party where everyone brought a dish that held special meaning to them. It sparked great conversations and allowed us to get to know each other on a deeper level.

[Some] advice I can give is to keep the event focused on connection rather than perfection. You don’t need an elaborate venue or a huge budget to make people feel appreciated. Sometimes, just gathering together with a mix of good food, a few games, and heartfelt thanks for everyone’s contributions throughout the year can be the most memorable way to celebrate. Capturing a few photos from the night can be a nice way to keep those memories alive and even share them on social media to celebrate your team.

Rhett Crites
Theme Park Brochures

Keep the budget flexible for fun extras; focus on what people actually want.

Holiday parties matter to me because they give everyone a break from our usual work routine and a chance to celebrate as a team. With how hard everyone works throughout the year, I want to make sure our holiday party feels well-planned and enjoyable for everyone.

So, what I do to make our holiday party successful is planning everything ahead and establishing a budget. I like to start early and make sure everything’s mapped out so there are no last-minute hiccups. I break down all the main parts of the event like the venue, food, activities, and anything extra we want—then I set a timeline for getting each part organized. Starting a couple of months in advance gives me plenty of time to work out the details without feeling rushed. It’s kind of like putting together a puzzle, one piece at a time.

For the budget, I start with the essentials. I look at the big things first, like venue costs and catering, and set a spending limit for each. If we’re thinking about a certain type of meal, I’ll reach out to a few caterers early on to get rates, so I don’t run into last-minute price spikes. I try to keep a bit of flexibility in the budget for some fun extras too, like a raffle or a small gift for everyone—something that’ll make the night feel a bit more special without stretching the budget.

I also like to ask the team for their input. I’ll usually send out a quick survey to see what people are into, like specific food choices, music preferences, or activities they’d enjoy. This way, I’m not guessing, and I can put the budget toward things I know everyone will appreciate. It keeps things simple and focused on what people actually want.

Daniel Vasilevski
Bright Force Electrical

Celebrate unique style; include virtual elements for remote employees.

1) Celebrate Each Team Member’s Unique Style

At CLIFTON, we’re all about personalization, so we bring that spirit into our holiday parties. We design custom gifts that match each team member’s style, like branded jackets or accessories. These not only show appreciation but also reinforce our brand’s focus on individuality.

2) Host Engaging Activities Instead of Formal Dinners

Rather than a traditional dinner, we plan hands-on activities, such as DIY holiday gift-making workshops or a team outing to a local holiday market. This allows the team to relax, connect, and experience something new together.

3) Hybrid Celebrations for a Flexible Team

Since some of our team members work remotely, we include virtual elements to keep everyone engaged. For example, we send “holiday surprise packages” so that remote team members can join in and feel the holiday spirit from wherever they are.

These approaches ensure our holiday gatherings are memorable, inclusive, and truly meaningful for our team.

Simon Elliot

CLIFTON