Amid ongoing geopolitical turmoil and global elections that have seen more people head to the polls than ever before in history,¹ 2024 has been a year of uncertainty and upheaval for many businesses. But as 2024 ticks over into 2025, recent challenges can start to look like fresh opportunities.

Here are four suggestions for how to help you prepare your business for the year – and opportunities – ahead.

Reviewing your achievements from the past year can help you identify areas for improvement in 2025. Setting goals can motivate your team and help you to allocate resources correctly.

Of course, it’s important to be realistic and factor in any challenges you are likely to face too. For example, the inflation outlook in Europe is expected to improve markedly, but is still set to be above the European Central Bank’s target of 2% in 2025.²

Conducting a SWOT analysis (strengths, weaknesses, opportunities, and threats) can be a good way to determine where you stand in relation to these wider macroeconomic factors. And once you’ve done that, you could set SMART goals (specific, measurable, attainable, relevant, and time-based) to help you progress during the year.

If you’ve put workplace culture investments to one side this year as seemingly more tangible priorities have emerged, it’s worth taking stock. As the business landscape continues to shift and evolve at pace, success can often rely on your ability to attract and retain the right talent. That means getting your employees on-board with what you’re trying to achieve, in a way that aligns with their own goals and values.

The run-up to the new year is a good time to review what is and isn’t working. You could start by making sure your company values are relatable and actionable for your employees. Then, consider developing a benchmarked engagement plan to monitor your progress.³

Above all, focus on building trust and respect. Employees with a sense of belonging can be more productive, so make sure you recognize and celebrate their accomplishments, anniversaries, and team victories.⁴

Tumultuous times call for more resilient businesses, and diversifying into a new market is one way to minimise risks – provided you carefully consider both the bigpicture and business-specific landscape you’re entering.

You could start by analysing the macroeconomic prospects for the market you’re considering (you could use the IMF’s Regional Economic Outlook service to get you started). Then, thoroughly research your chosen sector, local competitors, and the potential customers in it, to help ensure there is sufficient demand for your products.⁵ Check out this episode in our Going Global series for more insights into new market expansion.

The start of the year is a great time to review your current spending. This can help you identify any inefficiencies across your business and figure out what budget you’re able to allocate to meet your overarching objectives.

Most businesses have a good idea of the costs associated with operating, but these can change over time. Proper budget tracking and line-by-line analysis can help you see how changes will impact on your bottom line.⁶

Then, you could consider the areas you’d like to invest in for 2025. Focus on solutions that solve a genuine need, understanding how any investment will benefit your business.⁷

There is lots to suggest that AI adoption is set to have positive benefits for businesses – according to a recent Gartner survey, AI early adopters saw, on average, a rise in productivity by 22.6%, costs reduction by 15.2% and a 15.8% surge in revenue.⁸

But an even more recent prediction by Gartner serves as a warning about ill thought-out AI investments. It predicts that, by the end of 2025, 30% of generative AI projects for business will have been abandoned – most likely due to causes such as low-quality data, rising expenses, unclear business value, and deficient risk management.⁹

Make it work: Try not to get seduced by the surface-level capabilities that so many AI applications offer. Instead, carefully analyse the overarching business value and total costs of AI innovation, to determine its direct ROI and future value impact. If this presents a convincing case, still start small – and only start to scale if the business outcomes meet or exceed expectations. If results aren’t meeting those expectations, then it may be necessary to take a look at other more innovative options.¹⁰

In 2024, a landmark changing of the guard took place in the world of digital marketing, as spend on social media advertising overtook spend on search engine advertising.¹¹ While this reflects changing online behaviour across most demographics, one statistic stands out in particular: that, when searching for something online, Generation Z use Google 25% less than Gen-Xers.¹²

Make it work: As Generation Z continues to come of age, and their spending power continues to increase, you should consider how to ensure your marketing meets potential new customers at the right moments, where they’re most likely to buy. That could mean switching up your ad budget allocations, and creating ad content that can be easily consumed on social and video formats.¹³

Recommerce – the reselling of previously owned items, often through online marketplaces – is in the ascendancy. This is attributed to two prominent concerns amongst today’s consumers: the need to economise amidst what is, for many, a cost-of-living crisis; and a commitment to sustainability that increasingly drives purchase decision making. In the UK alone, the market for second-hand goods is projected to reach $25.4bn in 2025, doubling what it was in 2020.¹⁴

Make it work: Even if you’re not a dedicated recommerce business, it’s worth considering how you could tap into this burgeoning boom. For more traditional retail and e-commerce businesses, it can offer a new revenue stream and/or a way to connect with your more eco-conscious customers. For example, could you follow the lead of companies like Ikea and Patagonia, and allow customers to trade-in used items for credit?¹⁵ Or, if that’s beyond your means as a small business, consider starting by offering hints and tips on how customers can reuse or recycle your products – people are increasingly looking to brands to educate them not only on how to buy in a more sustainable way, but also on how to consciously live in a more eco-friendly way.¹⁶