2024 is disappearing faster than a watermelon at a Gallagher concert and its already time to plan for 2025. Deep breath first. Let’s make a list. What’s important to review as you wind down 2024 and steel yourself for 2025? The S&P Capital Partners team created a year end review checklist for business owners as you guide your operations into the new year and the next phase of development. If you need to answer any one of these questions as 2024 sunsets into 2025, we’re here to assist. The S&P Capital Partners team can help maximize your business value and provide carefully developed and respected guidance as you continue to grow and build valuable business assets.
Review 2024’s performance to the actual budget: prepare a forecast for 2025 with 2024 review. If an actual budget or forecast has not been a part of your formal planning each year, you should strongly consider adding this on top of standard tax planning with your tax advisors.
Revisit and revamp marketing and strategic plans: How long has it been since you refreshed or realigned your marketing process? Are you missing potential client connections? Are you adapting to industry changes? Are you successfully identifying new market opportunities? Who hasn’t heard the company message? Can you identify trends and market shifts that could grow the business, protect each customer, and outperform the competition?
What’s the short and long term strategic plan? If a business owner started with a business plan, and in a lot of cases, that’s a big if, many have long since abandoned the original concept as the daily operational gride took valuable time away from business development. End of year is the ideal opportunity for business development strategy review to identify and define achievable goals for the coming year.
Team Planning and Performance Reviews – Training, key management performance reviews, and strategic plan discussions are ideal for year end wrap up. This is a great time to get input from the management team and staff who work every day in the trenches.
Technology, Software, CAPEX – Review all company CAPEX needs to identify deficiencies and appropriate funds for tool upgrades, software updates, CRM’s, etc. for continued growth and company sustainability.
Clear Directional Communication – identify 2024’s successes and failures. What did the team do well and where did they bomb. Many companies lack clear communication and direction when establishing directives and clear lines for team collaboration. Businesses have to know:
- Where are we?
- Where are we headed?
- What will we look like in 3-5 years?
Formulate 2025 budget: How does the 2025 budget align with the strategic plan and growth strategy? Have you reviewed upcoming CAPEX needs for both the current year and beyond? What is the hiring strategy for the upcoming year? Are you adding new positions to achieve staffing goals? What are you doing to analyze and project revenue into 2025? Are you considering the most vital data points? Are they realistic? Is your team factoring in contingency funds for unexpected work stoppages? In addition, and vitally important, reconcile all supporting ledgers on the balance sheet so that 2024 ends and 2025 starts zeroed out and balanced.
Foster relationships with key business partners: Customer retention and brand loyalty is an important component for long term company stability and operational continuity. How are you planning to interact with key customers and vendors who’ve contributed to the business’ success in 2025? How does business development figure into the new year’s budget to retain the company’s client base and add key clients? Potential clients have budgets too. Determine targets prior to year end 2024 to make sure their business fits into their 2025 budget. Are there strategic relationships that require significant time investments before the new year? Is there a way to build brand loyalty through end of year communications?
Establish year end goals for the upcoming year based on Strategic Plan: What are the strategic goals for the current year, where are they documented, how will you measure achievement throughout 2025? What should businesses measure and regularly monitor? Do you have a review plan for periodical assessment in 2025? Who needs to be involved in that process? Are the goals realistic and impactful? Do they align with the business mission and core values? What risks limit current goals? Is there a plan to mitigate those risks?
Evaluate the people strategy for the coming year: Will the company invest in the org chart in 2025? Have you incorporated employee development in the people strategy? Is the organizational chart current and does it identify areas of need? Is there a specific plan for identifying individual goals and expectations? How will you help employees align with the 2025 business objectives? How will the management team monitor and measure progress while keeping a pulse on team engagement this coming year?
Self-reflect on the individual’s performance as a business owner and leader: There is more to business owner performance than income and cash flow. How have you reflected on leadership this year? What were the leadership goals in 2024? How successful were they? Any lessons learned from accidents or unplanned events? Where are personal development opportunities in 2025? How do you plan to implement changes for personal growth and development for the coming year? Have you engaged the management team for leadership feedback? How will you employ that feedback to improve as a leader?
Year end tax planning and strategy: Have you spoken with your tax preparer or CPA, to maximize tax benefits, minimize your tax obligations, and fully fund your retirement accounts? What is your tax plan for 2025? Did the company overpay or is it incurring penalties for underpayment? What process changes will align estimated payments to future results to avoid unnecessary penalties and interest? Will you meet with your CPA regularly and adjust tax strategy for the coming year? You should and we encourage business owners to meet regularly with their advisory council. If you don’t have an advisory council, we can help you access dozens of business owners and advisors who love passing on their learned experience.
Succession & Exit Planning Strategies: Regardless of tenure as a business owner, it’s never too early to engage in succession & exit planning discussions with professionals like the team at S&P Capital. Do you expect to pass your business on to the next generation of family? Do you believe you’ll sell to an outside buyer? Do you want to significantly boost company growth through outside investment? If you’ve ever given any thought to retirement planning, you should speak with professional deal makers early and often.
Contingency planning: An unexpected tragedy. Nothing anyone ever wants to think about. In the business plan, have you considered contingency plans should something unexpected happen? What if you’re not able to perform your current duties within the organization? Is there a team member who can immediately step into the owner’s shoes? Have you made long term family investment plans if you’re unable to continue? NASA has contingency plans for contingency plans for contingency plans. You should too. It’s an essential part of succession planning for uninterrupted business continuity in case of an emergency or unavoidable disaster.
S&P Capital Partners offers investment banking services to privately held businesses and business owners. We deliver efficient, trustworthy, and expert M&A services to businesses in the lower middle market ranging up to $150 million in enterprise value. With nearly 40 years of deep learned, real-world deal experience, the investment banking professionals at S&P Capital Partners successfully bridge the gap between Main Street SBA business brokerage companies with limited access to M&A and non-government underwritten capital markets, and the institutional investment banking firms that acquire businesses in the upper middle market.
S&P Capital Partners is an independent & boutique business advisory firm. Creating profitable exits for our clients is our priority.
About the Author
