Whether you’re launching your business in 2025, or hoping to grow yours, you may be feeling a combination of excitement and trepidation.
“Be financially prepared for the unknowns,” advises SCORE Mentor David Blankenhorn, a former bank president. “With the new administration there is a possibility of many changes including tariffs, tax laws, etc. Have your financing in place.”
Some degree of uncertainty is always part of running a small business, and the smart approach is always to focus on what you can control while creating a backup plan if things don’t go as expected.
Here are 7 steps you can take now to help set your business up for a financially successful year.
1. Know Where You Want to Go
The end of the year can be hectic, but try to find time for a year-end business review, then get to work on your goals for the coming year.
“Set goals for your business so you know what success looks like,” advises SCORE Mentor Tony Gansen. “Everyone has a different idea of success, so it is important to know what you think success is.”
He encourages business owners to develop a business plan with specific, measurable goals. “Forecast your business and establish key metrics for your business so you can track how your business is doing based on those metrics,” he recommends. “Make adjustments to your plan and your business based on the data you collect. Keep this information current (by) reviewing it at least monthly.”
“Put together a business plan which should include a profit and loss statement as well as cash flow for the 3-5 year period beginning 2025, advises Mark Cutler, SCORE Regional Vice President Northeast Region (New York and New England States). “The business plan can be as simple as a one pager such as a Business Model Canvas, but the P&L and cash flow (statement) needs to be detailed in order to study potential business opportunities or risks.”
The Entrepreneur’s Guide to the Modern-Day Business Plan
2. Dial in Your Bookkeeping System
It’s hard to think of something that fills a business owner with more dread than tax time, especially if your records are disorganized or out of date.
“One area many small business owners often don’t focus on is keeping up to date and detailed bookkeeping records of their business,” warns Will Meikle, SCORE Certified Business Mentor and Northeast Regional Director.
He goes on to explain that keeping good records “is important for several reasons:
- “You will need this information to file taxes quarterly or annually to the tax authorities.
- It will give you the right insight on the profitability of your business to guide your future decisions, (and)
- Help you prepare for any loan or grant applications you may pursue to fund your business growth.”
If your business operates on a calendar year (most sole proprietorships and other small businesses do), now is the perfect time to make sure you’ve set your bookkeeping system up correctly for 2025 and have a plan for keeping your financial records up to date, whether you decide to go the DIY route or outsource to a bookkeeper or accountant.
QuickLook: Best Small Business Accounting Software
3. Get a Business Credit Card
If you’ve been relying on a personal credit card for business expenses, get a small business credit card and use it exclusively for business purchases. This will allow you to clearly separate your business and personal purchases, and it should make it easier to deduct interest and fees.
Most small business credit cards are available as soon as you start your business. Issuers typically check personal credit scores and will accept household income, rather than just income from the business.
And if you need startup capital, a 0% intro APR credit card may offer up to 18 months of interest-free purchases, provided you pay the balance on time and in full before the intro offer expires.
Finally, the perks you get with credit cards make them especially valuable. Many business owners have found creative ways to make the most of credit card spending and earn significant cash back or travel rewards.
4. Build Good Credit
Good business and personal credit may help your business in several ways, including better financing options, lower insurance premiums, longer payment terms with suppliers, and even important business opportunities with companies that may vet your business using a business credit report or business credit scores.
It takes time to build good credit, though, so start before you need it. To establish business credit, you’ll need accounts (often called “tradelines”) with companies that report payment history to business credit bureaus. Net-30 tradelines that report can be a great way to start building business credit.
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5. Shore up Savings
“Watch the trends and try to have money saved up for a rainy day,” suggests SCORE mentor Tony Gansen. “It is important to build up some savings to deal with unexpected events (such as) changes in the economy, a storm or maybe sickness.”
Meikle agrees. “In addition to having the necessary startup capital needed to launch your business, I think it is always a good practice to have 3-6 months of money in the bank to cover your operating expenses,” he says. “This will allow you to weather the ups and downs in the economy, as well as seasonal patterns you may see in your industry.”
If you’re just starting out, banking that much money will probably not be an option. You can budget for personal savings, start your business on the side while you keep a job for income, or even get a business line of credit as a backstop until you can get there.
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6. Use the Right Tools
Whether it’s software for an e-commerce store, or a pressure washer for a window cleaning business, the right tools make all the difference when it comes to making your customers happy.
The same thing applies to running your business. The right tools make it easier and faster as you work on your business, not just in your business. These include:
- Bookkeeping software
- A business checking account
- Business and personal credit monitoring
- Point of sale system/merchant account
- Cash flow monitoring
Money is often tight, especially for new business owners, so think about what your time is worth and look at how tools can save you time, and ultimately money.
7. Get Help
Consider outsourcing to agencies or freelancers, suggests Meikle. “(You) do not need to hire someone directly in the early days,” he notes. “Examples are bookkeeping, social media marketing, (or) tax preparation.”
You can also get free business mentoring through SBA Resource Partners like SCORE, a nonprofit organization that offers free business mentorship to small business owners.
“Find a mentor that can help you so that you don’t have to learn everything the hard way,” says Gansen.
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