2 weeks Ago
Every new year brings an opportunity for entrepreneurs to evaluate the state of their business and adjust their strategies to prepare for success in the year ahead. With an ever-evolving landscape, it’s more important than ever for business owners to establish a plan while staying flexible to adapt as needed. Here are a few steps business leaders should consider for success in 2025.
Regularly reviewing your business’ strengths, weaknesses, opportunities and threats (SWOT) is important no matter what time of year, but especially as you’re realigning on goals at the start of the year. Identifying what works well, what needs improvement, and any possible external challenges will allow you to adjust your business plan to ensure you can capitalize on advantages and address pain points.For example, if you notice customer retention is a struggle for your business, consider adjusting your budget to allocate funds to marketing and customer investment strategies.
Or, if inflation is a concern for your business in the year ahead, you may need to adjust your pricing accordingly. You wouldn’t be alone, as 57% of business owners say they are raising prices due to impacts of inflation, according to Bank of America’s latest Business Owner Spotlight.After conducting your SWOT analysis and updating your business plan accordingly, you may be looking to expand.
Our report found that 63% of business owners are planning to do just that in the year ahead. When looking at how best to grow your business, make sure to consider what expansion strategies make the most sense. Should you grow your online presence or open a new storefront? Narrowing down and investing in the strategies that will best serve your business will help you see the biggest return on investment, rather than stretching yourself — and your budget — too thin.
It is also crucial to evaluate your hiring processes and investments for retention. Bank of America’s recent report found that many business owners are investing in educational resources for employees such as on-site training programs to further their career growth.The entrepreneurial spirit can often encourage you to manage all tasks and workflows yourself, but utilizing technology that can simplify your day-to-day is only going to help increase efficiency and productivity.
In fact, 71% of small business owners said they digitally optimized their business over the past 12 months, according to the Business Owner Spotlight.Technology can help with a variety of challenges. AI and automation tools, project management tools to strengthen team collaboration, and customer relationship management systems can provide useful information about customer behaviors to ensure your strategies are efficient.
Small businesses must embrace and invest in the right technology to optimize operations and stay competitive.Sign up for Viewpoints, an opinion newsletterTo make any of this happen, you may need additional capital. Despite the need, many entrepreneurs face challenges accessing capital.
Consider all options to determine the choice best for your business. Traditional bank loans are useful and are likely the default option, but there are many other resources such as business grants that do not need to be paid back and may make more sense for your needs. If you’re looking for somewhere to start, ask your banker or visit Bank of America’s Access to Capital Directory, which offers a variety of free and low-cost capital resources to consider.
As the nation’s top small business lender, Bank of America knows small businesses create jobs and anchor our communities. These steps will help keep your business on the path to a strong and successful 2025.Tyrone Noel is Hampton Roads market president for Bank of America.
Steve Williams is the owner of I A Electric, a veteran-owned small business electrical contractor in Norfolk..
