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As we look ahead, here are some challenges we see for 2025:‘Uncertainty’ has been the defining phrase for the first half of the 2020s. The markets are unstable, supply chains have been wobbly and finding talent has been difficult.But as we head into 2025, and the second half of the decade, what are the major threats, opportunities and challenges that your business should focus on?However well-organised you are, there are elements in the external environment that you just can’t control. These external factors can have a serious impact on your ability to trade, grow and turn a profit. So, are you on the ball and ready to tackle them in 2025?Let’s look at some of the external factors you should be focused on:AI and technological disruptionArtificial intelligence (AI) and automation have changed the game in a fantastically short timeframe. Finding the value in this tech is crucial, as well as understanding its limitations. Getting your digital transformation underway will be vitally important in 2025, as will exploring how AI and automation can kickstart your productivity, boost your customer service processes and create a real competitive advantage for the company as a whole.Skills shortage and transforming your workforceThe ongoing skills shortage, combined with the reality of an aging workforce and changing employment expectations, is a major issue. To overcome the talent challenge, you’re going to need to rethink your recruitment policy, your training and what you do to retain your key people. Things like flexible working arrangements, continuous professional development (CPD) and a great company culture are all ways to attract and maintain your top talent.Inflation and an unstable economyThe global and local economies are not out of the woods yet. Forecasts may be looking more positive but there’s still the ever-present threat of recession, rising inflation and high interest rates. Getting granular with your financial forecasting will help, as will exploring your options for additional revenue streams, better cashflow management and ready access to business finance.Regulatory compliance and reportingRegulatory environments are getting increasingly complex, as governments wrestle with the need for tighter structures.  Regulations around your environmental reporting, workplace relations and digital privacy are all likely to get tighter over the coming years. This means allocating time and resources to understanding and implementing the relevant compliance requirements.1. Create a Comprehensive Budget and Stick to It Start the year with a detailed budget that aligns with your financial goals. Track income and expenses, identify unnecessary spending, and allocate funds for savings, investments, and emergencies. 2. Optimize Tax Planning Throughout the Year Avoid last-minute tax stress by planning ahead. Review your tax obligations, adjust provisional tax payments, and consult with an accountant to ensure you're taking advantage of all eligible deductions and credits. 3. Build or Strengthen Your Emergency Fund Aim to save at least 3-6 months’ worth of living or operating expenses. Having a robust emergency fund can provide financial security during unexpected challenges, such as economic downturns or personal emergencies. 4. Invest in Professional Development or Technology Allocate resources to improve your skills or business tools. This could include training for staff, upgrading accounting software, or adopting new technology to streamline operations and improve efficiency. 5. Review and Adjust Financial Goals Quarterly Set realistic, measurable goals at the beginning of the year and revisit them every quarter. Regularly reviewing your progress allows you to make adjustments as needed and stay on track to meet your financial objectives.