Setting financial goals for small business in 2025 is crucial for success. On a frosty January morning, Emily woke up to the sound of snowplows outside her home in Toronto.. A small business owner running a thriving café, Emily had big plans for 2025. Across the border in Chicago, Jake, the owner of a boutique digital agency, was also gearing up for the new year. While their businesses were different, Emily and Jake shared the same challenge setting clear and actionable financial goals.
Many entrepreneurs struggle with setting financial goals for small business in 2025. This guide will help you take control of your business finances.
Step 1: Reflecting on Financial Goals for Small Business 2025
If you’re a business owner, setting financial goals for small business 2025 can help you grow sustainably and prepare for future challenges.
- Revenue: CAD $180,000
- Expenses: CAD $140,000
- Savings: CAD $20,000
Meanwhile, Jake was reviewing his numbers at his downtown office:
- Revenue: USD $250,000
- Expenses: USD $200,000
- Savings: USD $30,000
Both Emily and Jake realized that while they had grown their businesses, unexpected expenses had hindered savings. They knew it was time to take charge.
Step 2: Defining Their Goals
Emily visualized what she wanted to achieve:
- Increase revenue by 20% (CAD $216,000).
- Save CAD $30,000 for a second café location.
- Reduce supply costs by 10%.
Jake had his eyes on scaling operations:
- Boost revenue by 25% (USD $312,500).
- Save USD $40,000 for hiring additional staff.
- Invest in advanced software to streamline client projects.
They both wrote down their goals, making them specific, measurable, and time-bound.
Step 3: Breaking Goals into Steps
Emily divided her goals into actionable steps:
- Short-Term (3-6 Months): Launch a winter promotion to attract more customers.
- Mid-Term (6-9 Months): Negotiate better deals with local suppliers.
- Long-Term (12 Months): Save profits from the summer tourist season for expansion.
Jake followed a similar strategy:
- Short-Term (3-6 Months): Offer a discount package for new clients.
- Mid-Term (6-9 Months): Implement new project management software.
- Long-Term (12 Months): Allocate funds for recruiting a new team member.
Step 4: Budgeting for Success
Emily sketched out her budget:
- Marketing campaigns: CAD $8,000
- Supplies: CAD $15,000
- Savings: CAD $10,000
Jake created a similar plan:
- Advertising: USD $12,000
- Software upgrades: USD $5,000
- Team expansion: USD $15,000
Both realized that a detailed budget was crucial to achieving their goals.
Step 5: Tracking and Adjusting
Emily and Jake used digital tools to monitor their finances. Emily opted for a Canadian small-business app, while Jake used an accounting software popular in the U.S. Both scheduled monthly reviews to track progress and adjust their strategies.
Step 6: Facing Challenges
In March, Emily faced an unexpected challenge when her supplier raised prices. Using her savings, she switched to a more affordable local vendor. Jake had to handle a sudden client cancellation but made up for the loss by launching a successful referral program.
Celebrating Wins
By mid-year, Emily reached her goal of reducing supply costs by 10%. She celebrated by investing in new seating for her café. Jake hit his first milestone, saving enough to hire a junior designer, and treated his team to a celebratory lunch.
December 2024: A Year of Growth
As the year ended, Emily looked around her busy café, proud of her achievements:
- Revenue: CAD $220,000
- Savings: CAD $35,000
- Supply costs reduced by 12%
Jake, too, reflected on a year of growth:
- Revenue: USD $325,000
- Savings: USD $45,000
- New software increased efficiency by 20%.
Both Emily and Jake realized that setting financial goals wasn’t just about numbers—it was about building a sustainable future for their businesses.
Resources
Canada Revenue Agency (CRA) – Read More
U.S. Small Business Administration (SBA) – Read More
Accounting Software (e.g., QuickBooks, FreshBooks, Xero)
Your Turn: Start Planning for 2025
Now that you’ve seen how Emily and Jake set their financial goals for small business 2025, it’s time for you to create a solid financial plan.
