(CNN) -- Liverpool manager Kenny Dalglish said he is looking to conduct "good business" in what will be a "very important" off-season as the Anfield club prepare to challenge for the English Premier League title in 2011-12.
Dalglish, 60, has led the Reds to sixth in the table after replacing Roy Hodgson in the Liverpool dugout in January, and also oversaw the $58 million outlay on strikers Andy Carroll and Uruguay's Luis Suarez.
"Every football club after May knows where they stand," Dalglish, who also had a six-year spell as Liverpool manager between 1985 and 1991, told the Merseysiders' official web site on Friday.
"You know what you need and there's always going to be business done. If you do good business, you've more chance of being successful."
Dalglish, while acknowledging there will be transfers in and out of Liverpool, also warned against hampering the development of the team's young talents.
"That doesn't just mean buying players and letting players go, it's about developing what else you have. This (off-season) is going to be very important," he said.
In recent weeks the Scot has blooded players from the side's youth academy, with young defenders John Flanagan, 18, and Jack Robinson, 17, both featuring in Sunday's 1-1 draw with Arsenal.
In addition to Flanagan and Robinson, 22-year-old Jay Spearing has also been involved in domestic and European action for Liverpool along with 19-year-old former Charlton midfielder Jonjo Shelvey.
Dalglish has assured his young starlets they will continue to be part of first-team affairs next season if they can prove themselves up to the task.
"If we're convinced we have young players who are maybe better than what's available, then we'll keep our younger players. But that's not to say we don't want to improve as a football club in any way.
"We do need to leave some path open if we think there are players who can come in. If they develop then fine, if they don't, we've got a problem. But if you buy a player in and he doesn't produce, you've got a bigger problem."
There could also soon be changes for the five-time European champions off the pitch, with reports the club are close to agreeing an EPL-record kit sponsorship deal with Boston-based company Warrior Sports.
British newspaper The Telegraph reported the 18-time English champions will be paid $41m by Warrior in a deal for the 2012-13 season.
The figure would more than double the current agreement Liverpool have with German sports manufacturer Adidas, which is thought to be worth $20m per year.