Charting a path to small business success in 2024

The new year is a great time for Chicago-area business owners and entrepreneurs to reflect on their businesses, assess potential challenges, and evaluate the factors that are mostly likely to contribute to their continued success.

With more than a decade in banking and finance — and nearly five years supporting small business owners across Chicago’s suburbs — I’ve learned that the most successful companies are those whose leaders are well-versed in costs structures, laser focused on strengthening core competencies, and deeply knowledgeable about the changing market. These fundamental attributes are essential to a healthy bottom line.

Regardless of your industry, product, service or business model, the following strategies will help small business owners and entrepreneurs start the new year strong.

Update your business plan

Conducting an audit of your business plan is a vital activity at the start of the new year, helping business owners assess strengths, evaluate opportunities, and remain nimble amid changing market conditions. Start by comparing last year’s results to prior years, looking at sales, marketing and advertising tactics, and other activities to spot trends and refine strategies for 2024. Then, create a realistic financial plan, including forecasting sales and revenue and setting a budget for fixed and variable expenses, like maintenance, operations, and human resources.

The new year also represents a prime opportunity to review your customer service offerings. Are there opportunities to grow market share, reach new audiences, or expand a product line? Additionally, consider how loyalty or rewards programs could help drive repeat visits to your business. Finally, gather input about your business plan from individuals you trust. Feedback from your employees, customers, and fellow business owners can provide valuable insight into what’s working well and what can be improved in the year ahead.

Evaluate your working capital

Regardless of your business plan or model — almost all small business owners will require capital — that capital is accessible by creating new efficiencies, reducing costs, or sourcing from your bank or the Small Business Administration. In the Chicago area, Bank of America small business lending is up year-over-year, with more than $480 million extended to local small businesses through the third quarter of 2023, a signal of confidence and continued growth for owners and operators across the market.

Despite demand, many entrepreneurs face difficulties accessing capital, so it’s important to understand the available options. Traditional bank loans remain a strong source of capital but may not be right for every business. Small business owners should determine if they qualify for business grants in their area. Additionally, Community Development Financial Institutions, such as Allies for Community Business, can be helpful sources of capital for under-served entrepreneurs and those whose businesses are in their infancy.

Bank of America’s Access to Capital Directory is a one-stop-shop for small business owners to review free and low-cost capital resources available in their area.

Recruit and retain talent

Nearly half of small business owners are impacted by labor shortages, according to Bank of America’s 2023 Women & Minority Business Owner Spotlight. In this competitive labor market, it’s important for entrepreneurs to have a plan for bringing candidates to the interview table — and keep them on the payroll.

Creatively sourcing candidates, clarifying career growth opportunities, launching internship programs, and offering more comprehensive benefits packages are just a few ways business owners can recruit and retain top talent this year.

As the nation’s top small business lender, one that has served the Chicago area for more than 150 years, Bank of America is committed to supporting small business owners on their path to success in 2024 and beyond.

• Kyle Pikorz is the small business banker manager for Bank of America where he supports small business owners and entrepreneurs across the Chicago suburbs.