Kickstart Your Business for a Strong 2025

Author: Larry Chester, President

The new year is here! As a business owner, there is a lot to evaluate and prepare for 2025.

Many business owners felt the squeeze of a tight 2024 and if that was the case for you, naturally the goal is to avoid a repeat that year.

A crucial component to revitalizing your business in the new year is ensuring you have a clear plan of action. The year could’ve looked vastly different to you from other business owners, but regardless of where you are on your journey, identifying actionable items is key. We’ve put together a list of important steps to take to position your business for success in 2025.

To simplify the process, we’ve broken these tips down into three categories:

1. Financial Review
2. Human Resources Updates and Changes
3. Business Planning Tips

HERE ARE A FEW STEPS REVITALIZE YOUR BUSINESS PLAN FOR THE NEW YEAR

1. FINANCIAL REVIEW

Meet with your bank

Revitalizing or scaling your business may require additional funding. Banks may not fully understand how your specific business has been impacted by changes in the economy, or how it might be affected this year by changes like new tariff policies, so communication is key. Proactively arrange a meeting with your bank to discuss your plans, concerns, and the support you’ll need to achieve your goals.

When meeting with your bank, be prepared to discuss:

• How your business has changed and how your sales have been impacted
• How your overhead expenses may evolve as you grow or refresh your business
• Your profit outlook for 2025
• Whether you need additional funding, why you need it, and your repayment strategy.

Create a cash flow forecast

Effective cash flow management and forecasting remains a cornerstone for business success,as it can help you anticipate your company’s financial needs and ensure the stability of your operations throughout the year.

Examine your open Accounts Receivable

Review your open accounts and check the financial stability of your customers. Consider revisiting credit terms and maintaining open communication to ensure you’re working with customers who can reliably pay.

Reexamine your budget

It’s easy to get caught up in daily operations, but a comprehensive review of your business budget is essential. Take time to analyze current sales, expenses, and net income. Use these insights to project your financial performance based on your strategic plan.

Review your relationship with your suppliers

This is a place where many business owners can proactively reach out to get better payment terms from your key suppliers.  If you can arrange to pay them later, even if it’s only two weeks later, that provides you with additional cash flow to use in growing your business.

2. HUMAN RESOURCE MANAGEMENT SYSTEMS UPDATES AND CHANGES

Determine your optimum staff level

Evaluate how you’re using your current team and determine whether you need to hire additional employees or reallocate responsibilities. It’s important to look at potential changes on a department-to-department basis.

Inform your employees of changes to hours, pay, or benefits

Transparency is crucial when implementing human resource changes. If adjustments to staffing, pay, or benefits are necessary, communicate clearly and all at once to maintain morale and trust.

Establish or update your work-from-home policy

Although hybrid and remote work models have been popular over the past few years, many companies are bringing staff back into the office to provide better collaboration across the team. If your company plans to remain remote, return in person, or adopt a hybrid model in 2025, ensure your policies are clearly defined and communicated to your team.

Revise your employee manual

Significant legal changes in employment regulations over the last few years may require updates to your employee manual. This document serves as your company’s rulebook, and keeping it updated ensures consistency and compliance.

3. UPDATE YOUR BUSINESS PLAN FOR THE NEW YEAR

Evaluate how your business has changed

A business plan isn’t just for startups—it’s a living document that guides your operations and growth. Take time to reassess your business model, goals, and strategies in light of changes in the market and your industry.

Create a new strategic business plan

Based on your evaluation, draft a strategic business plan to outline your objectives and the steps needed to achieve them. This plan should guide your operations for the next few years.

Understand how your products/services and delivery have changed

Determine if any of your products or services should be adjusted, phased out, or expanded. Evaluate how these changes impact your customers, suppliers and inventory.

Steps to follow:

• Communicate changes to your customers and propose solutions that provide greater flexibility to meet their needs.  This could provide benefits in a competitive environment
• Update pricing if necessary, but provide fair warning to customers about upcoming changes
• Ensure your team is informed and trained on any product or service updates to avoid customer frustration.

As you enter 2025, take a strategic approach to evaluating how your business has evolved. Whether you’re reopening, scaling, or refining your operations, a comprehensive review can help ensure success. Seeking advice from professionals—such as employment attorneys, bankers, commercial realtors, marketing experts, or fractional CFOs—can further ease the process and improve decision making.