Now we are almost at the end of January and the first rush of enthusiasm for setting a whole string of unrealistic New Year’s resolutions has subsided, you can start setting some you will actually keep! In particular, those that will help your business be even more successful in 2025.
So, what resolutions should you be setting which aren’t just realistic but also will help with business success? These are our top recommendations.
1. Revisit your business plan
If you think a business plan is just something you create when you first start out in business and can then be put into a drawer and forgotten about, think again.
A business plan is a living, breathing document which basically provides you with a roadmap of where your business is going. It highlights how you are going to grow your business, anticipates the challenges you might face along the way, and sets milestones so you can determine the progress you have made.
Without one, it’s really hard to keep your business on track, which is why it’s so important to review and update it regularly. So, scheduling a review is a great way to kickstart 2025.
And of course it goes without saying, if you don’t have a business plan, then top of your resolutions for 2025 should be to write one, immediately
2. Review how you manage your cash flow
Like most things in life, when you’ve been doing things for a while, it’s easy to get a little bit complacent. And managing your business cash flow is no different.
So, whether that’s not invoicing promptly, not sticking to your process for chasing late payments or not bothering to negotiate better terms with your suppliers, take stock of everything to do with cashflow to ensure it’s as good as it should be.
We also recommend you create a 6–12-month cash flow forecast so you have a clear idea of any anticipated changes in revenue and expenditure. Remember, being forewarned is being forearmed so if you do identify a future dip in earnings, you can start looking at ways to potential increase sales or reduce costs.
3. Get to grips with the key changes happening this year
Last year’s Autumn Budget had a bit of a mixed reaction especially in terms of the impact it would have on small businesses, but whether you were happy with the changes or not you need to be ready for them.
While most of the changes aren’t coming in until April, it’s worth starting to plan ahead now. How are you going to deal with the hike in National Insurance? Will you be reducing hours, reducing headcount or just factoring it into your staff costs?
What about the increase in National Living Wage? This could have a direct impact on your growth plans, so do you need to revisit your business plan?
Make sure you understand how all the changes this year are going to impact your business and overall profitability. And if you are unsure about how any of these changes will affect your business, we will be more than happy to offer you advice and guidance.
4. Accept technology as your friend
We’ve talked before about why you should use online accounting software, and with the advances made over the last few years and AI becoming mainstream, we recommend embracing technology with both hands!
From near-instant invoicing to expense tracking and the ability to streamline payroll, using technology can save you hours on tasks that are doing nothing more than drag you away from more important things like spending time with your clients!
Technology can also help you analyse important business data, such as customer retention, which product lines are more successful, where seasonal peaks and troughs occur.
But while we think embracing technology is a must for 2025 make sure you don’t go overboard. It’s too easy to think a piece of software will revolutionise your business and then only use it once. So, think long and hard about whether it will really benefit your business, and whether you really will use it on a regular basis. You don’t want it to be like that gym membership you took out on January 2nd!
5. Use an accountant
You’re probably thinking we are bound to say this given we are accountants, but in all seriousness, give it some genuine thought.
Contrary to popular belief, using an accountant isn’t just about getting your tax returns done properly and in on time. Obviously, that is a large part of it, but it’s also about helping you grow your business.
Accountants are uniquely placed to provide invaluable advice and guidance as they have a detailed knowledge of all your finances and the necessary skills to spot trends and areas for improvement. This also means they are a great sounding board for any ideas you have for expanding your business and will be able to offer vital independent advice.
And even if you just use your accountant for filing your tax returns, just think of the time that’s saving you, not to mention the stress!!
Hopefully, this has given you some ideas of achievable and realistic business resolutions you can set this year. And if you are looking for an accountant, please get in touch and we can have a chat about what services would best suit your business needs.
