Are you ready to take on new small business trends in 2025? Knowing what’s on the horizon can help you plan your business strategy now and keep your business growing through the new year. With this strategy, your business will be better positioned for stability, growth, and success in 2025 and beyond.
In this overview, you’ll learn about anticipated trends and challenges for 2025 and how your business can prepare for them. You’ll also find easy-to-implement suggestions to turn potential hurdles into opportunities by focusing on a few key areas of your business.
What are the key small business trends and challenges from 2024 that will impact you in 2025
As 2024 comes to a close, there’s still some unpredictability in key trends and challenges, including:
- The higher interest rates have battled inflation in 2024, with lower rates expected to come in 2025.
- Business technology advances, including artificial intelligence (AI).
- Sustainability and corporate social responsibility (CSR).
Positive small business news for 2025
If there’s a silver lining to the economic hardships your business has faced this year, it’s that you’ve become even more resilient and creative. You’ve found new and innovative ways to cut costs and become more efficient as you weather inflationary storms. As you move forward, there are more reasons to be optimistic for 2025. Here are just a few:
- Many economists and analysts predict continued economic growth moving into 2025. Although the pace of growth likely won’t be as strong as you saw in 2024, analysts expect real GDP to increase by 1.5% in 2025.
- The Federal Reserve has cut interest rates by a half point, marking the first decrease since the start of the COVID-19 pandemic. As a result, inflation continues to move towards the new set long run neutral rate of 2.9%.
- According to the U.S. Department of Treasury, entrepreneurship will continue to surge in 2025. In fact, the United States is averaging 430,000 new business applications per month in 2024, which is 50% more than it was in 2019.
How can you prepare for the 2025 small business trends?
It’s never too soon (or too late) to plan, implement and pivot your business strategy. After all, the most successful businesses turn challenges into opportunities. Here’s how your business can navigate the 2025 small business trends for a stronger start to the new year, and how to leverage them throughout this year and beyond.
1. Prepare for changing inflation and interest
After a long battle against inflation, it’s finally trending down towards the Fed’s target and as a result, the Federal Reserve lowered policy rates. While you can’t predict exactly how the market will behave, it’s fair to assume that if inflation continues to trend down, interest rates will do the same. Here’s how you can prepare:
Update your financial projections and budgets to account for this change
Take time now to review all aspects of your operations and make budget adjustments as needed. The Fed predicts that inflation will be 2.3% in 2025. You should update your business financial projections with this and as new information is released. In 2025, the Federal Open Market Committee will meet for eight scheduled dates to discuss interest rates for 2025.
Ensure that you have enough working capital on hand
Working capital is the funds that help you cover day-to-day and shorter-term operational expenses. It is especially crucial during unpredictable times. Having enough on hand will make it much easier for your business to adjust to any unforeseen challengers and help you leverage opportunities.
For example, with working capital on-hand you’ll be able to negotiate for bulk purchases of business supplies and inventory. This can help you absorb some of the price increases, rather than immediately raising prices for your customers.
2. Be digital-forward
With new advances in small business technologies, and the further development of generative AI, it’s become more important than ever for businesses to adapt. In the post-pandemic environment, businesses digital interactions have become a part of the “new normal.” As you move forward, customers will continue to expect digital options, so ensure that your business is as digital-forward as possible:
Review your website
While your social media is great for promotions and online events, your website is still the primary way that people engage with you for sales and services. Check your website for necessary updates to hours, online ordering and delivery, return and exchange policies, promotions, accessibility, search engine optimization (SEO), your Google Business Profile, and other search profiles to make sure that the information is updated and user-friendly. Research shows that customers are 50% more likely to buy from a business with a complete Google profile.
Optimize your sites for flexible transactions
Shoppers in the U.S. spent over $132.7 billion in click-and-collect purchases in 2024, and this is expected to continue to grow annually around 17% growth through 2030. You could consider implementing a “buy now, pay later” app for e-commerce, if it makes sense for your business. A payment option like this can be the deciding factor for customers who are feeling inflation’s pinch. It can also make higher-cost products and services more accessible to your customers. This type of plan is increasingly popular – in fact, there’s already been an increase in usage from 12% in 2022 to 14% in 2023.
Look at all your points of contact, for both customers and vendors, and see how you can make transactions easier and safer for them. This may mean making upgrades to your current technology or purchasing new equipment and software. Whatever the case is for your business, this is a trend that’s not likely to end any time soon. Consider it money well spent on your customers and your long-term success.
Use generative AI and process automation
Over the last 5 years we’ve watched as artificial intelligence changed from a work in progress to a game-changing technology for businesses and individuals across the globe. In 2025, many predict to see more AI use than ever before. The strategies to use these technologies vary by industry, but there are many ways it can help you automate tedious and repetitive functions. Some examples include in content creation, customer service, and operational efficiencies. Keep in mind, you should do your research before jumping into the AI world to ensure you’re using it in a safe and secure way that supports your business.
3. Become competitively sustainable
Incorporating sustainability into your everyday business practices has moved from a proactive exercise to a competitive advantage in today’s economic climate. It’s becoming more often that consumers will make their buying decisions based on the more environmentally friendly choice. More and more people are choosing to do what’s best for the planet, make sure your business is doing all it can too:
Eco-Friendly Product & Packaging
Many consumers are looking to purchase products and services that are environmentally friendly. Not only is offering eco-friendly options for your customers good for the planet, but it can attract eco conscious consumers to your brand. Look for opportunities in your processes to cut down on waste and use environmentally friendly products.
Reduce waste by going paperless
Every day, businesses across the country use and dispose of huge quantities of paper. Going paperless can help your business reduce costs, run more efficiently, boost customer satisfaction, and even have a positive impact on the environment.
Invest in your business now to reap rewards in 2025 and beyond
Knowing what’s ahead for 2025 can help you make the most of the upcoming small business trends. As you make your plans for 2025, keep these small business trends and challenges in mind. Taking the time now to prepare ensures that your business will have a strong start to the new year.
Pursuit has financing available to help your business prepare for 2025
Pursuit is a leading small business lender throughout New York, New Jersey, Pennsylvania, Connecticut, Illinois, Nevada, and Washington. We have a line of credit, business loan options, and advisory services that can help you finance your business needs to tackle challenges and leverage opportunities in the new year.
Contact us to learn more about how we can help you grow your business.
