The start of a new year is the perfect time for small business owners to reflect, reset, and prepare for the months ahead. By reviewing the previous year’s performance and creating a clear, actionable plan, you can set your business up for success.
Whether you’re looking to grow, streamline operations, or tackle challenges, this step-by-step business planning checklist will help you hit the ground running.
1. Review and Update Your Business Plan
A business plan isn’t just for start-ups; it’s a living document that should evolve with your business. Start the new year by revisiting your plan to ensure it aligns with your current goals, market conditions, and opportunities.
Key questions to ask:
- Have your business goals or priorities changed?
- Are there new opportunities in the market or shifts in customer demand?
- How did your business perform against last year’s targets?
- What risks or challenges should you plan for this year?
Practical Tip: If you don’t already have a business plan, now’s the time to create one. A strong plan outlines your strategy, financial goals, and action steps for growth.
👉 Need help? Check out our guide on how to write a business plan for practical advice and templates.
2. Financial Forecasting and Tax Planning
Understanding your finances is a cornerstone of good business planning. Start the year by reviewing last year’s financial performance and creating a clear forecast for the months ahead.
Steps to follow:
- Review cash flow: Analyse income, expenses, and any cash flow challenges you faced last year.
- Set realistic budgets: Allocate funds for key areas like operations, marketing, staffing, and growth initiatives.
- Plan for key deadlines: Note important tax dates, such as VAT returns and self-assessment tax submissions, to avoid last-minute stress or penalties.
- Look for cost savings: Identify areas where you can cut unnecessary expenses or negotiate better deals with suppliers.
Questions to ask:
- Are my financial goals achievable given my resources?
- Do I need to secure additional funding this year?
- How can I improve cash flow management to avoid any bottlenecks?
Practical Tip: Regularly reviewing your cash flow and financial targets will help you stay in control and avoid unexpected issues throughout the year.
👉 For more advice on managing cash flow, read our practical steps to better cash flow guide.
3. Market analysis and refreshing your marketing strategy
The start of the year is a great time to take a step back and review your market position and marketing efforts. Understanding what worked last year—and what didn’t—will help you focus on strategies that deliver results.
Steps to follow:
- Analyse last year’s performance:
- Which marketing channels performed best (e.g., social media, email campaigns, paid ads)?
- Were there any campaigns or promotions that exceeded expectations?
- Where did you see the most engagement or sales?
- Identify new opportunities:
- Are there changes in customer behaviour or market trends you should act on?
- Are there seasonal opportunities, industry events, or key dates to plan for this year?
- Update your marketing strategy:
- Set clear goals for the year, like “Increase newsletter sign-ups by 20% in the next quarter.”
- Plan your marketing calendar to include campaigns, product launches, or promotions.
- Allocate budget to the marketing activities that deliver the best return on investment.
Practical Tip: Consistency is key—schedule regular reviews throughout the year to monitor progress and make adjustments.
4. Staffing and team development
Your team plays a vital role in your business’s success. The start of the year is a great time to assess your staffing needs, plan for growth, and ensure your team has the skills and support they need to thrive.
Steps to consider:
- Review current team performance:
- Are there gaps in skills or resources holding the business back?
- Do you need to upskill your team with training or development opportunities?
- Plan for growth:
- Do you need to hire new employees to support expansion or ease the workload?
- Will you need temporary staff for seasonal peaks or project-based roles?
- Support team development:
- Invest in training, mentoring, or professional development to help your team excel.
- Ensure regular check-ins and performance reviews to keep goals on track.
Questions to ask:
- What roles will I need to hire for this year to meet my business goals?
- Does my current team structure match my business priorities?
- How can I improve team morale, productivity, and retention?
Practical Tip: A strong, motivated team is the backbone of a successful business. Supporting your staff now will set you up for a productive year ahead.
👉 If you’re planning to hire, our free guide on how to hire staff for your small business will walk you through every step.
5. Tools and systems for tracking progress
To keep your business running smoothly, it’s essential to have the right tools and systems in place. These tools will help you monitor progress, manage day-to-day tasks, and ensure you’re on track to hit your goals for the year.
Key areas to focus on:
- Financial management:
- Use accounting software to track cash flow, expenses, and revenue.
- Regularly review financial reports to spot trends and address issues early.
- Project management:
- Tools like Trello, Asana, or Monday.com can help you organise tasks, manage timelines, and collaborate with your team.
- Break large projects into smaller, manageable steps with clear deadlines.
- Customer relationship management (CRM):
- Use CRM systems to manage leads, track sales, and nurture customer relationships.
- Review last year’s data to identify areas for improvement, such as response times or follow-ups.
- Goal tracking tools:
- Set up tools or dashboards to monitor progress against your goals. This ensures your targets remain visible and actionable.
Practical Tip: Regularly review your systems to make sure they’re still meeting your needs. If your business has grown, it might be time to upgrade tools or explore automation to save time and resources.
6. Key Compliance and tax dates to note
Staying on top of compliance and tax deadlines is critical for avoiding penalties and keeping your business running smoothly. Start the new year by noting the key dates and setting reminders to ensure nothing gets missed.
Important areas to focus on:
- Self-assessment tax returns: If you’re a sole trader or partnership, the deadline for submitting your online tax return is 31 January.
- VAT returns: If your business is VAT-registered, make sure you file your VAT returns and payments on time. Check your specific deadlines, as these may vary depending on your accounting period.
- Corporation tax deadlines: Limited companies must pay corporation tax nine months and one day after the end of their accounting period. Returns must be filed within 12 months.
- Payroll and pensions: Ensure PAYE and National Insurance contributions are submitted to HMRC on time. If you have a workplace pension, stay up to date with auto-enrolment contributions and re-enrolment requirements.
- Annual accounts and filings: Don’t forget to file your annual accounts and confirmation statements with Companies House if you’re a limited company.
Practical Tip: Use calendars, automated reminders, or accounting software to keep track of these key dates and avoid any last-minute scrambling.
Starting the New Year with a clear plan
The start of a new year is the perfect opportunity to reflect, reset, and plan for growth. By following this essential business planning checklist—reviewing your business plan, managing finances, and focusing on your team and systems—you’ll build a solid foundation for success.
Remember, flexibility is key. Regularly reviewing your progress and adapting to challenges or opportunities will keep your business on track and moving forward.
👉 Need support with tax and compliance? FSB members can access expert advice and resources to keep their businesses running smoothly.