There are countless financial factors to keep in mind as a business owner. As 2025 kicks into full gear, there are a handful of proactive questions to ask yourself and your adviser that will set up your business, and its finances, for another successful year ahead.
1. How will my business grow this year?
There’s no right way to expand your business. If you don’t know where to go next, goal-setting doesn’t always have to be about the big picture. Instead, putting intention behind your processes is a great place to kick off. A few ways to do so:
- Focus on tracking your expenses and building income. Every dollar counts, especially for small and midsize businesses (SMBs). Find a system that both fits your business model and serves as an easy way to facilitate cash flow management and analysis.
- Ensure that bills are paid on time. This is equally important for outflows and revenue collection. Having a solid grasp on accounts receivable and accounts payable will set up your business for success. People are always at the heart of every business; staying on top of bills will improve relationships with vendors, employees and clients.
- Keep cash on hand for emergencies. As with personal expenses, having a backup of three to six months’ worth of cash reserves gives a cushion for slow seasons, investments and operating costs. If that isn’t doable, seeking financing can be a great backup option.
2. My business needs financing, but what are my options?
Growing businesses have specialized financing needs. Determining best option for your business will depend on the size, age and cash flow of your business. What your business needs comes down to timing, purchasing needs/accounts payable and hopes for investment into the business.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
If financing is a natural next step for your business’ growth and operations, the options only get more complicated. Consider the following factors to narrow it down:
- Is revenue consistent? A single investment that would generate more revenue or provide long-term cost savings (think: equipment, machines, space) would align well with a vehicle such as a term loan, which can be set up to have regular, fixed payments.
- What is your credit score? Interest rates across credit options can vary depending on your personal credit history.
- Does my cash flow call for consistent financing support? A line of credit (such as a loan or credit card), for example, will grant access to funds as needed. Depending on the type of payments you’re making (payroll vs business travel expenses), your preferred option will vary.
- How much time do I have? Some lines of credit take longer to access. For example, an SBA loan requires a hefty, time-consuming application process.
3. Do I need to invest in my stakeholders?
There are numerous people, clients and partners who care about your business and are dedicated in different ways to its success. Everyone within and immediately surrounding your business is part of your network, creating opportunities and offering solutions to challenges in the market. A few people to focus on building relationships with this year can include:
- Vendors. Without strong vendor relationships, many business functions can be delayed, mispriced or fall below ideal quality standards. Leave no stone unturned; every business that supports yours matters and should be enabling your success. Consider each company you work with, from accountants to landlords, freelance designers to raw material suppliers. Find ways that you can serve one another, ensure a stable relationship and truly understand one another’s business to enhance collaboration to make both of your businesses more efficient.
- Partners. Are you and another organization offering complimentary goods or services to a set of customers? If so, keep a close watch on partnerships. Ensure that the partners you work with are best-in-class. If shopping around isn’t an option or preferred, this is a key moment to take the time and express your needs to those existing partners. Collaboration is the key to success, especially when there’s a shared knowledge of the end customer.
- Financial services providers. With the right tools, a small business can accelerate growth across revenue, customer satisfaction, product/service quality and in many other ways. However, it can be overwhelming to manage finances in a new way, on top of running a company in an ever-changing environment. Having an existing, positive relationship with your banker and/or financial adviser takes away one barrier to entry. Even if you don’t know how to get to the next phase, you know where to begin. Even if it’s not on your to-do-list for 2025, whether your next big step is improving point-of-sale, taking out a line of credit or seeking information about M&A, find someone you trust for big financial questions. When opportunity strikes, you’ll be ready.
Setting financial goals for your business is more than a beginning-of-a-new-year exercise. It serves as a blueprint for your company’s growth and success in a sustainable way. Diligently managing your cash flow, exploring funding options/determining if you need them and investing in fostering strong relationships with stakeholders creates a solid foundation for your business to grow on.
Related Content
- Why Small Business in 2025 Should Have You Excited
- Three Strategies for Small Businesses to Reduce Taxes
- Five Tax Breaks Business Owners Might Not Know About
- Five Strategies for Maximizing Your Business' Profitability
- Financial Planning for Small Business Owners
-
Smart Strategies for Paying Your Child an AllowanceBy giving your kids money to spend and save, you’ll help them sharpen their financial skills at an early age.
-
The Mulligan Rule of Retirement — Seven Mistakes You Can FixUse the Mulligan Rule to undo these seven costly retirement errors. While you can’t go back in time, some retirement choices allow for a “correction shot.”
-
From Pets to Paintings: The Little Things That Can Cause Big Estate TroubleSentimental items might have little monetary value, but their disposition can cause hurt feelings. Talking about who wants what and labeling items can help.
-
The Clock Is Ticking: Take Advantage of These Retirement Tax Benefits While They LastRecent tax changes, including an extra $6,000 deduction for those 65 and older, present a golden opportunity for retirees to reduce their tax bills.
-
I'm a Financial Adviser: This Is Why Unmarried Same-Sex Couples Need an Estate PlanWhen illness or death occurs within an unmarried same-sex partnership, family members can step in and push the surviving partner out. An estate plan is vital.
-
Stocks Bounce But End With Big Weekly Losses: Stock Market TodayThe stock market rout continued on Friday, but a late-day burst of buying power brought the main indexes off their session lows.
-
Costco Gold Bars Keep Selling Out. Are They a Smart Investment?How Costco's bullion program works, how to get the best deal and whether it makes sense for investors.
-
Use This Stock Market Recipe for a Well-Diversified PortfolioFor years, large U.S. stocks were all you needed for a diversified portfolio. A broader mix is better now.
-
A Financial Planner's Guide to a Stress-Free Adventure AbroadStart by looking at flight/accommodation costs, have a flexible schedule, seek out credit card rewards, prep for health issues and plan to cook your own food.
-
I'm a Financial Planner: This Is How Smart Women Can Plan for Financial Freedom Despite Life's CurveballsProactive planning and professional guidance can help to build your confidence and give you clarity when you're navigating major life transitions.
