According to the Federation of Small Businesses, there were 5.5 million small and medium-sized enterprises (SMEs), making up 99.8% of all businesses.
With such a strong presence last year, small businesses will continue to have a significant impact in 2025.
This article outlines six key strategies to help your business grow in the coming year, from setting clear goals to using the latest AI technology.
Here’s what we’ll cover:
- Review Your Business Plan
- Set SMART Strategic Goals
- Manage Your Cash Flow
- Make Use of AI and Technology
- Train Your Team
- Seek Expert Advice
1. Review Your Business Plan
Your business plan should not be a static document. It should change as your company grows and sets new goals.
“Stop living in 2022,” says Andrew Bloch, PR adviser to Lord Sugar, host of the UK reality TV show The Apprentice.
Andrew, who leads Andrew Bloch & Associates, a consulting firm focused on marketing and communications, advises, “The first step is to take another look at the business plan you wrote three years ago and update it.”
He continues, “Your market, customers, and costs have changed since 2022. Your business strategy should reflect current conditions.
“Be realistic, consider both opportunities and challenges, and ensure your plan aligns with your business goals.”
Here are some ways to make sure your business plan stays relevant:
Get Customer Feedback
Your customers are at the heart of your business, so understanding their needs is crucial. You can gather feedback in several ways, such as:
- Customer surveys
- Review sites
- Direct communication
If the feedback suggests your product or service is not meeting expectations, make the necessary improvements—whether that means offering a better product or a faster service.
Analyze the Market and Your Competitors
Staying informed about industry trends and customer behavior is important. You can use resources like Think with Google, trade publications, and industry reports.
For example, if you’re a plumber, you could read Professional Heating & Plumbing Installer or check reports like the Plumbers’ Merchant Market Report to stay updated on industry changes.
If your research reveals new market opportunities or competition, adjust your business plan accordingly. This might mean introducing a new product or forming a strategic partnership to expand your resources and reach.
Measure Your Business Performance
Comparing your financial records with your key performance indicators (KPIs) will help you determine if your business is meeting its goals.
Some key financial KPIs include monthly recurring revenue, while customer-related KPIs might focus on acquisition costs.
If you are falling short of your KPIs, review your processes to find and eliminate inefficiencies. Alternatively, you may need to adjust your goals to be more realistic.
2. Set SMART Strategic Goals
Setting goals is important, but making them SMART—specific, measurable, achievable, realistic, and time-bound—helps ensure success.
For example, if you own a clothing store and want to increase foot traffic, a SMART goal might be:
Increase in-store sales by 7.5% over the next three months through targeted promotions and improved product displays.
A SMART goal ensures that every business decision aligns with your objectives, helping you stay focused, track progress, and adjust as needed.
3. Manage Your Cash Flow
Andrew stresses that managing cash flow is essential for a business’s long-term success.
He explains, “Keep an eye on cash flow and profit margins. We’re in business to make money, not just cover expenses. A strong bottom line means little if you don’t have cash available when you need it.
“Regularly review cash flow projections, track late payments, and cut unnecessary costs.
“You also need to protect your margins by evaluating pricing, supplier contracts, and operating expenses.”
To manage cash flow effectively, consider these tips:
- Create a six- to twelve-month cash flow forecast, including expected sales, investment returns, and expenses such as debt payments.
- Use invoice software to automate invoicing and follow up on late payments.
- Negotiate better payment terms with suppliers, like discounts for early payments.
You can also use a free cash flow forecast template to estimate how much cash will be coming in and going out of your business over time.
4. Make Use of AI and Technology
Leveraging AI tools and other technology can make your business operations more efficient and help you compete with larger companies.
Here are a few examples:
- Accounting software automates financial processes like payroll and expense tracking, improving accuracy and efficiency. AI-powered cloud accounting solutions that are HMRC-compatible are particularly useful.
- Customer relationship management (CRM) systems improve customer service and sales by organizing customer interactions, sales processes, and marketing efforts in one place.
- Inventory management software helps avoid overstocking by tracking stock levels, managing orders, and forecasting demand.
5. Train Your Team
The start of a new year is a great time to assess whether your employees have the skills and experience needed to help your business succeed.
If they need additional training, consider investing in their professional development.
Some areas to focus on include:
- Digital skills training in areas like e-commerce, data analytics, and social media marketing to boost your online presence and reach new customers.
- Customer service training to enhance customer satisfaction, loyalty, and retention. This could involve workshops with role-playing exercises based on real customer interactions.
To identify skill gaps, conduct regular employee performance reviews, ask for self-evaluations, and compare your company’s performance to industry benchmarks.
6. Seek Expert Advice
Even the most experienced business owners need expert advice at times. Whether it’s financial planning with an accountant or recruiting employees with the help of an HR specialist, expert guidance can be invaluable.
If you’re looking for an accountant, for example:
- Check their credentials to see if they are a member of a recognized professional body like the Association for Chartered Certified Accountants (ACCA).
- Ask for recommendations from family, friends, or fellow business owners.
- Use an accountant database to find a financial expert who meets your needs.
- Look at independent reviews on sites like Trustpilot to assess their reliability.
Final Thoughts
Andrew encourages small business owners to take a steady, focused approach, saying, “Think small, win big.”
He adds, “Many business owners try to fix everything at once and end up feeling overwhelmed.
“Focus on one area at a time—whether it’s reviewing your business plan or adopting new technology. Progress adds up, and real success takes time.”
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