According to the survey, sending cards or calendars remained the most popular holiday gesture for clients and customers (18 percent) followed by a food or fruit basket (8 percent). The number planning to give retail or restaurant gift certificates to key clients or customers doubled from 4 percent in 2002 to 8 percent in 2003.

The survey also found that end-of-year bonuses and parties were tied atop the list of business owners' holiday plans for employees. In all, 43 percent of business owners planned to give bonuses and the same number cited plans to hold holiday parties. In addition, 33 percent said they planned to give gifts to their employees and 18 percent said they intended to give raises. Business owners in the Northeast were the most likely to give year-end bonuses (49 percent) followed by the North Central region (43 percent), South (42 percent) and West (39 percent).

According to the survey, businesses with over $200,000 in annual revenues were more likely than their smaller counterparts to have holiday plans for their employees, including handing out bonuses (60 percent vs. 26 percent), holding holiday parties (54 percent vs. 31 percent), giving holiday gifts (40 percent vs. 28 percent) and giving raises (27 percent vs. 10 percent).

“The holiday season gives business owners an opportunity to show employees, clients and customers how much they value their contributions to their companies,” said Alice Bredin, Small Business Advisor for OPEN: The Small Business Network from American Express. “Many business owners plan to give bonuses, gifts or hold holiday parties, although it's important to remember that sending holiday cards with a personal note can also go a long way in reminding someone how important they are to the success of the company.”

Business Owner Turned Party Planner
Business owners wear many hats during the year, and many will add “party planner” to their list of responsibilities this holiday season. Among the 43 percent of businesses overall planning holiday parties, over half (53 percent) expressed some concerns about the events they were planning. Making sure people have a good time topped the list of party planning concerns (22 percent) followed by not being sure about what kind of event to have (18 percent); that party guests would drink too much (10 percent), choosing the right location (9 percent); spending too much money on the event (7 percent) and inappropriate staff behavior (3 percent).

“A holiday party can be an excellent way to reward employees, build company spirit, bond with clients, or otherwise celebrate the season, so no business owner wants to host a party that's a dud,” Bredin added.

Bredin suggests that business owners consider the following when planning a holiday party:

• Involve employees. Create a meaningful holiday party by asking your employees what they want. Be clear about the party's purpose and budget, and then ask some representative employees to sketch out a few ideas. Don't expect many unanimous decisions, but strive to please the majority.
   
• Focus on the details. The success of any holiday event is in the details - the invitations, the food, the decorations, the sound system, etc. Careful planning can help ensure a successful party that meets company goals. If you cannot devote an appropriate amount of time to planning the event, you could consider using a professional party planner or consultant.
   
• Avoid “passive” parties. Build in fun and memorable activities to your party. You might even make the activity the centerpiece of the celebration, for example, holding the event at a local cooking school where you prepare a gourmet holiday meal together. Even a low-key party can include activities such grab bags or door prizes.
   
• The more, the merrier. If your company is too small to do everything you want to celebrate the holidays, consider joining up with other local businesses or partners to create a party with a bigger feel. By joining forces with other companies, prices can go down. And while small get-togethers can be fun, many feel the atmosphere of a large party puts them in the holiday spirit.
   
• Safety first. Take care to ensure that everyone at your party not only has a good time, but also gets home safely. You might consider limiting the amount of alcohol you serve by using drink tickets or have alternative transportation available. Also, have plenty of food and non-alcoholic beverages available.

Survey Methodology
The OPEN Small Business Network Semi-Annual Monitor, released each March and October, is based on a nationally representative sample of 787 small business owners/managers of companies with fewer than 100 employees. International Communications Research (ICR) conducted the survey via telephone from September 8- September 19, 2003. The poll has a margin of error of +3.5 percent.

About OPEN: The Small Business Network from American Express
OPEN: The Small Business Network is a division of American Express that offers small business owners a wide range of tools, services and savings designed to meet their evolving needs, including charge and credit cards, convenient access to working capital and credit information, enhanced online account management capabilities and savings on business services from an enhanced lineup of partners. To obtain more information about the OPEN Network, visit OPEN.americanexpress.com or call 1-800-NOW-OPEN to apply for a card or loan.

American Express Company is a diversified worldwide travel, financial and network services company founded in 1850. It is a world leader in charge and credit cards, Travelers Cheques, travel, financial planning, business services, insurance and international banking.