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The first quarter of a new year is a beneficial time for entrepreneurs to evaluate the state of their business and adjust their strategies to prepare for success. Bank of America Global Research economists expect it to be a good one with strong economic growth, higher productivity and reductions in interest rates.

Utah is no exception as the state has experienced a significant increase in new business startups while mirroring a national trend with a surge in small business applications. The Beehive State’s reputation as a business-friendly state remained intact, accompanied by a low unemployment rate, tax incentives and a thriving entrepreneurial community attracting new businesses and encouraging the expansion of existing ones.

According to the U.S. Small Business Administration, the rate of Utah small business employment growth between 1997 and 2021 was the highest of any state, with an increase of 56.5%.

Most records show small business applications continuing to thrive in Utah. There were 71,262 new business applications in Utah in 2023, which marked an estimated 9% increase from filings in 2022. Of Utah’s 29 counties, small business applications increased in all but six.

Salt Lake County registered the highest increase of applications, growing from 23,263 to 26,690 in 2023. Utah County placed second with 17,810 new petitions.

Small business owners’ concerns remain elevated around key economic factors such as inflation, higher interest rates and commodities prices, but they are slightly down since last spring. Concerns around a recession and supply chain issues are down significantly this year.

With an ever-evolving landscape, it’s more important than ever for business owners to establish a plan while staying flexible to adapt as needed. Here are a few steps business leaders can take to start the new year strong.

Conduct a SWOT analysis

Regularly reviewing your business’ strengths, weaknesses, opportunities and threats, or SWOT, is important no matter what time of year but especially as you’re realigning on goals at the start of the year. Identifying what works well, what needs improvement and any possible external challenges will allow you to adjust your business plan to ensure you can capitalize on advantages and address pain points.

For example, if you notice customer retention is a struggle for your business, consider adjusting your budget to allocate funds to marketing and customer investment strategies. Or, if inflation is a concern for your business in the year ahead, you may need to adjust your pricing accordingly. You wouldn’t be alone, as 57% of business owners say they are raising prices due to impacts of inflation, according to Bank of America’s 2024 Women & Minority Business Owner Spotlight.

Consider expansion strategies

After conducting your SWOT analysis and updating your business plan accordingly, you may be looking to expand. Our report found that 63% of business owners are planning to do just that in the year ahead.

When looking at how best to grow your business, make sure to consider what expansion strategies make the most sense. Should you grow your online presence or open a new storefront? Narrowing down and investing in the strategies that will best serve your business will help you see the biggest return on investment, rather than stretching yourself — and your budget — too thin.

Attract and retain talent

A business cannot run without its employees, so it’s crucial to evaluate your hiring processes and investments for retention. Bank of America’s recent report found that many business owners are investing in educational resources for employees such as on-site training programs to further their career growth.

Forging stronger relationships with employees will not only help increase retention but offer you more support to avoid working longer hours.

Supplement with technology

The entrepreneurial spirit can often encourage you to manage all tasks and workflows yourself, but utilizing technology that can simplify your day-to-day is only going to help increase efficiency and productivity. In fact, 71% of small business owners said they digitally optimized their business over the past 12 months, according to the 2024 Business Owner Spotlight.

Technology can help with a variety of challenges — AI and automation tools can source and screen potential candidates, project management tools can strengthen team collaboration, and customer relationship management systems can provide useful information about customer behaviors to ensure your strategies are efficient.

Small businesses must embrace and invest in the right technology to optimize operations and stay competitive.

Source the capital you need

To make any of this happen, you need the proper capital. In Utah, Bank of America business lending is up year-over-year, with $122 million extended locally in 2024, reflecting confidence and growth among Utah small businesses.

Despite the need, many entrepreneurs do face challenges accessing capital. Consider all options to determine the choice best for your business. Traditional bank loans are useful and are likely the default option, but there are many other resources such as business grants that do not need to be paid back and may make more sense for your needs.

If you’re looking for somewhere to start, ask your banker or visit Bank of America’s Access to Capital Directory, which offers a variety of free and low-cost capital resources to consider.

As the nation’s top small business lender, Bank of America knows small businesses create jobs and anchor our communities. As we enter a new year, these steps will help put your business on the path to a strong and successful 2025.

Ronald Call is a Bank of America Utah Business Banking Senior Relationship Manager.