As we move deeper into 2024, it’s a good time for Rhode Island small-business owners to reflect on the state of their business and the factors that matter most to their success.
The most successful companies will be those with leaders who are keenly versed in knowing cost structures, are focused on core competencies and understand the market. These fundamental skill sets can equate to successful bottom lines, regardless of your specific industry or economic conditions.
Given this, updating your business plan can set you up for a strong rest of the year.
Regularly reviewing and adapting your business plan is critical to ensure you’re operating in a realistic and nimble manner. When updating a business plan, compare last year’s business performance with prior years by checking sales results and marketing tactics to spot trends. This will help you determine the best strategies in 2024. Keep your budget in mind and ensure you are updating salaries, your projections and any fixed costs or money you’ve used to grow your business over the past year. Get feedback from others when updating your business plan. Speak with your employees, customers and fellow business owners to get a sense of what’s working well and what needs to be changed to perform better this year. At the end of the day, you want to make sure you’re keeping the customer happy, so look at your strategies, such as loyalty programs, to ensure you’re creating repeat customers.
One resource that almost all business owners will need is capital – be it from efficiencies and cost reductions or from your bank or the U.S. Small Business Administration. Despite demand, many entrepreneurs face difficulties accessing capital. Traditional bank loans may feel like the strongest capital source, but it’s important to consider that it might not be the best fit for your business. This is where business grants that do not need to be repaid can help bolster your small-business finances. Also, community development financial institutions can be helpful sources of capital for underserved entrepreneurs.
It’s essential to evaluate your hiring or retention processes, as nearly half of small-business owners are impacted by labor shortages, according to Bank of America Corp.’s 2023 Women & Minority Business Owner Spotlight, often leading to entrepreneurs working more hours and raising wages. Whether sourcing candidates, setting a clear employee growth timeline or creating an internship program, businesses can explore various ways to bring candidates to the interview table. As talent acquisition grows increasingly competitive, our bankers have also been working with more businesses to offer benefits packages as additional ways to recruit and retain top talent.
Businesses of all sizes and sectors are embracing digital innovation to automate tasks and streamline processes. Business owners should review their operations – and industry best practices – to identify how digital tools can help them expertly manage various aspects of their businesses.
A confluence of trends and benefits has helped digital payments proliferate, including widespread smartphone adoption and the growth of cloud-based software solutions, as well as increased digital transaction speeds and additional security through encryption and tokenization. Digital automation will also continue to influence how businesses manage their accounts payable, as digital solutions make it easier and more efficient to process payments, track invoices and manage cash flow.
This time of year is also a great opportunity to recognize your current team to set a positive tone for the remainder of the year. Take time in 2024 to set SMART expectations and goals for your team – specific, measurable, achievable, relevant and time-bound. If you haven’t already, it’s also important to acknowledge the great work your team did in the prior year, which can serve as a motivating factor for growth in 2024.
Nancy Rosedale is small-business banking manager of the New England South region of Bank of America Corp.
