BY FARIDA MOHAMMED
As the year ends, businesses can reflect on their progress, make improvements and prepare for a successful 2025. Planning thoughtfully now can help set the foundation for a strong year ahead. Do financial fine-tuning, make marketing strategy adjustments or align team goals.
Here is what you should do:
1. Conduct a Financial Health Check – The financial health of your business is a primary indicator of its readiness for growth. Review your year-end expenses, profit margins and cash flow to understand where adjustments are needed.
• Evaluate and Manage Expenses: Look for recurring expenses that can be reduced or renegotiated. For instance, service-providing businesses can consider revisiting contracts with suppliers or evaluating service levels to identify savings opportunities for the upcoming year.
• Reinvest in Growth Areas: If any products or services have driven more revenue, consider allocating more budget to support these areas.
Preparing financial budgets for the first quarter of 2025 will help you manage your business efficiently.
2. Set Clear Marketing and Sales Goals – Establishing realistic and actionable marketing goals at the start of the year gives your business a roadmap for success. Your goals might include increasing brand visibility, driving more online sales, or expanding into new markets.
• Targeted Promotions: Planning for promotions, especially around holidays like Easter and Ramadan, can help businesses like restaurants or kids’ clubs tap into peak spending periods. Allocate funds and marketing resources to these campaigns beforehand to drive higher engagement with minimal last-minute stress.
• Refresh Your Digital Presence: Update your website, social media profiles and online listings. For example, a locally-made Kenyan product brand can update its social media content to include community-driven campaigns that resonate with its customer base.
3. Conduct Year-End Tax Planning – Tax planning not only ensures compliance but also provides opportunities to minimise liabilities. As the new year approaches, consult with an accountant or tax expert who can help identify eligible deductions and credits.
• Utilise Tax Deductions: Many small businesses can deduct expenses like equipment purchases, marketing costs or employee training. For instance, a boutique could benefit from deductions on showroom upgrades, easing the tax burden. However, you can claim only invoices generated in your name showing your PIN.
• Plan for Filing Deadlines: Tax filing season is approaching, so be proactive. Setting reminders for yourself and your team will help avoid penalties and late fees.
4. Align Team Goals – Aligned teams are more productive, so use this time to reinforce a shared vision for the year ahead. Gathering team feedback and discussing new goals makes everyone feel involved in the company’s success.
• Performance Reviews and Feedback: Assess employee performance and offer constructive feedback. Retail and hospitality businesses could organise short team sessions where everyone shares ideas for improvement.
• Training and Development: Invest in skills development through workshops or online courses. Skills in customer service, digital marketing or project management can help employees better contribute to your business goals.
5. Plan for Resilience Amid Potential Challenges • Political and economic uncertainty can impact business stability. Implementing flexible strategies can help your business remain resilient, even in challenging times.
• Diversify Revenue Streams: Consider adding an e-commerce channel or offering virtual services to ensure continuity.
• Stock up for Early Demand: If certain products sold well last year, ensure you’re prepared to meet demand by stocking up early. It reduces the risk of supply chain disruptions or missed sales.
The end of the year is an ideal time to strengthen your business’s foundation. With careful planning and the right strategies, your business can start 2025 strong and grow throughout the year.