As the new year approaches, it’s the perfect time to take stock of your business’s performance and plan for a prosperous 2025. By focusing on financial health, adopting effective strategies and setting clear goals, you can position your business for growth.
Let’s explore how you can confidently kick-start the year and make the most of the opportunities ahead.
Prioritise financial health
A strong financial foundation is essential for long-term success. Start by reviewing your financial statements from the past year. Assess profit and loss, cashflow and balance sheets to identify patterns and areas for improvement.
Key areas to focus on include the following.
- Cashflow management: Ensure you clearly understand your cashflow cycle. Late payments, unnecessary expenses or poor forecasting can create cashflow issues. Regularly update your forecasts to reflect realistic projections.
- Reducing costs: Look for ways to reduce expenses without compromising quality. For instance, could renegotiating supplier contracts or switching to energy-efficient practices lower costs?
- Improving credit control: Streamline your invoicing process and encourage prompt payments by setting clear payment terms and offering discounts for early settlements.
According to the Federation of Small Businesses (FSB), late payments impact over 50% of small businesses, with some owed an average of £22,700. Addressing these challenges can significantly improve your financial stability.
Set SMART goals
Vague ambitions won’t drive real progress. Instead, use the SMART framework to set specific, measurable, achievable, relevant and time-bound goals. For example:
- increase revenue by 10% by Q4 through targeted marketing
- launch a new product or service by June
- reduce operational costs by 15% within six months.
Clear goals give you a roadmap for the year and help keep your team focused.
Leverage technology
The right tools can streamline operations, improve accuracy and save time. From accounting software to customer relationship management (CRM) systems, investing in technology can lead to measurable gains.
Popular tools for businesses include the following.
- Accounting software: Platforms like Xero or QuickBooks simplify bookkeeping, tax filing and financial reporting.
- CRM tools: Systems like HubSpot or Salesforce help manage customer interactions and improve client retention.
- Expense tracking apps: Tools like Expensify can help you monitor and control business expenses more efficiently.
Embracing automation saves time and reduces the risk of human error. A 2023 study by Sage found that businesses using cloud accounting reported a 15% reduction in manual errors.
Build a growth-focused strategy
Growth doesn’t happen by chance; it requires planning and execution. Consider these strategies to drive growth in 2025.
- Review your target market: Has your customer base shifted? Are there new markets you could explore? Keeping your audience front of mind ensures your products and services stay relevant.
- Invest in your team: A skilled and motivated workforce is key to success. Offer training, support and incentives to retain talent and improve productivity.
- Focus on marketing: Allocate a budget for marketing campaigns that align with your goals. Social media, email marketing and search engine optimisation (SEO) are cost-effective ways to reach potential customers.
Research shows that businesses investing in marketing see an average return on investment (ROI) of £4.87 for every £1 spent, according to the Data & Marketing Association (DMA).
Stay on top of compliance
The start of the year is an ideal time to ensure compliance with tax regulations, employment laws and industry standards. This could include:
- reviewing upcoming tax deadlines to avoid penalties
- confirming that your employees are on the correct contracts and that all workplace policies are current
- ensuring cybersecurity measures comply with the General Data Protection Regulation (GDPR) and other data protection regulations.
For instance, businesses failing to meet the VAT payment deadline face penalties starting at 2% of the outstanding amount. Proactive compliance avoids unnecessary costs and protects your reputation.
Build a support network
Running a business can feel isolating, but you’re not alone. Building a network of support is invaluable, whether through professional advisers, peer groups or industry associations.
Accountants, for example, can provide insights into tax efficiency, financial planning and long-term strategy. Regular check-ins with your adviser can uncover growth opportunities and identify potential risks.
Regularly evaluate your progress
Finally, set time aside to review your progress throughout the year. These check-ins ensure you stay on track with your goals, whether quarterly or monthly. If something isn’t working, you can pivot and refine your approach.
Let us help you succeed in 2025
At Thompson Wright, we specialise in helping businesses thrive. From tax planning to financial strategy, we’re here to support you every step of the way.
Get in touch to see how we can help your business achieve its goals.