The phrase new year, new beginnings held even more meaning in 2024, considering everything that transpired in 2024. For small business owners, the distribution of vaccines brings hope that business conditions will improve in the coming year. However, there was no certainty back then that the economic recovery would be swift, nor that your business will immediately benefit from it.

Having a business plan that anticipates the potential opportunities and challenges of the new year will be crucial for success. There’s no need to start from scratch when creating your business plan—it could be as simple as updating last year’s plan or drafting a new one using project management software.

Here are 10 key things to consider when crafting your 2024 business plan.

Reflect on 2021: A Business Review

Before you start planning for the upcoming year, it’s crucial to review what went well and what didn’t in 2021. The annual review can be done before the year ends. While you may see 2021 as a unique, once-in-a-lifetime event that you’d rather not focus on, there are always valuable lessons that can inform your strategy for the new year.

If you manage a larger business, a great starting point is to ask senior leaders within your organization to submit a list of 2-3 successes and 2-3 failures from their departments. You could also ask them to highlight areas where they believe improvements could be made or different approaches should be taken to tackle challenges.

Project management tools are ideal for this type of group brainstorming activity, as they enable file sharing and facilitate collaboration through comments on each other’s work. Once your 2021 review is complete, you’ll have a solid foundation to start building your new business plan.

Set Clear Business Goals for the Year Ahead

Your business plan should start with 2-3 key overarching goals for the year. These goals could be financial, focused on customer acquisition or retention, or anything else that aligns with your overall vision for the business. It’s important to make your goals quantifiable, so you can measure your progress and determine if you’ve achieved them. For example:

• 40% year-on-year revenue growth is more specific than simply saying grow our revenue.
• Achieve 25% market share is more measurable than beat our competitors.

Create a Detailed Project Timeline

If we were to create a flowchart for your business plan, your goals would sit at the strategic top line. Beneath that, you’d need a set of tactics—projects and initiatives—that will help turn those goals into reality.

Once again, this is where you can involve team leaders and leverage file-sharing tools to encourage collaboration and feedback. A good approach is to present the goals to the team leaders and ask each one to propose 2-3 strategic initiatives that align with achieving these goals.

After finalizing the project timeline, it’s time to input the details into your project management software, allowing your team to track progress and stay organized.

Stay Flexible in Your Business Planning

Military leaders often say that no battle plan survives first contact with the enemy. If 2024 has shown us anything, it’s that no business plan stays intact during a global pandemic or economic crisis. This doesn’t mean you shouldn’t have a plan, but it’s crucial to build flexibility into it. No matter how thoroughly you prepare for the year ahead, challenges (and opportunities) will always arise that could disrupt your course.

If you’ve been in business for a few years, it’s likely that parts of your original plan are no longer relevant. When creating your new business plan, it’s helpful to think of it as a living, evolving document, rather than a rigid blueprint that must be followed without exception.

Prepare for Various Scenarios in Your Strategy

Building on the previous point, it’s wise to have one or two backup plans ready—just in case Plan A doesn’t unfold as expected. Consider potential challenges you might face, such as difficulty securing financing, customers not returning to pre-pandemic behaviors, etc. By having contingencies in place for these scenarios, you’ll be better prepared to adapt to changing circumstances.

Many small businesses thrived in 2020 because they had a Plan B ready to go—such as pivoting to focus on e-commerce. While no one can predict exactly what the new year will bring for small business owners, having a well-thought-out plan in place is always a smart strategy.

Hold Your Team Accountable

For every business initiative, ensure that a specific person or team is accountable. Martin Zwilling, a seasoned start-up mentor and investor, emphasizes that business leaders must set an example when it comes to accountability. He suggests that leaders can demonstrate accountability by following these five steps:

• Be willing to openly declare that something needs to be done.
• Accept personal responsibility for addressing the issue.
• Make proactive decisions and take action.
• Carefully consider the consequences of each decision.
• Set high standards for yourself and your team.

Monitor Your Progress and Track Goals

Creating an annual business plan is meaningless if you don’t track the results. Your plan will outline quantifiable goals for the year, and regularly tracking progress—whether weekly, monthly, or quarterly—can help you stay on top of things without going overboard.

Team leaders responsible for each project should be more involved in tracking progress. Once again, project management tools make it easy for department heads to efficiently manage and monitor time, resources, budgets, scope, and teams.

Keep Your Plan Clear and Simple

Unless you’re running a one-person business, simply scribbling out your plan in a way that only you can understand is not enough.

Your business plan forms the foundation for the year ahead. It should be shareable with your team, serve as a reference for things like business loan applications, and be something you and your team can revisit regularly. Therefore, it needs to be clear, legible, and easy to follow.

Stay Updated on Regulatory Changes

While we’d like to be able to specify which regulations to watch for in 2024, the situation remains too unpredictable. As a small business owner, you may have had to adapt several times to new regulations and orders.

Staying informed about the latest rules and regulations will be key to successfully planning for the new year. The most straightforward ways to keep up to date are by reading or watching the news and connecting with other business owners in your community.

Prioritize Your Customers

Staying informed about the latest rules and regulations will be key to successfully planning for the new year. The most straightforward ways to keep up to date are by reading or watching the news and connecting with other business owners in your community.

Wishing You and Your Business Prosperity

It’s commonly said that customers should be at the heart of your business, and this is especially true as we approach 2025. Keep in mind that 2024 was a challenging year for everyone, not just business owners. As the economy (hopefully) recovers in 2024, prioritizing the customer will be essential to ensuring a successful year.