2025 Small Business Predictions: What To Expect And How To Prepare

2025 Small Business Predictions: What to Expect and How to Prepare

Contributed by SBOC Member:

Pat Miller

Founder of the Small Business Owners Community

Key Trends and Strategies to Help Small Businesses Thrive in a Transformative Year

As we approach 2025, the world of small business is poised for significant shifts. Whether you’re a seasoned entrepreneur or navigating your first years in business, understanding the forces at play will be critical to your success. During my segment on Newsradio 620 WTMJ, I shared insights and predictions for Small Business in the coming year—covering politics, business trends, AI, social media, and content creation. Here’s a recap of what’s ahead and what small business owners should do to thrive.

Politics: What to Expect in 2025

The political landscape in 2025 will be loud and fast-paced, particularly during the first 100 days of the new administration. With limited time before the midterms, expect quick actions on:

Immigration: Immediate changes are likely, though major reforms will require Congress.
Energy Policies: Adjustments to energy strategies and regulations could impact operating costs.
Tariffs and Trade: Expect tariffs to be used as leverage for “better deals,” but the actual impact remains unclear.
Government Downsizing: Attempts to reduce bureaucracy could face resistance, but the ripple effects may still be felt.

What this means for small businesses

Ignore the noise. While 2025 will bring headlines and debates, material changes impacting small businesses won’t likely be felt until 2026. Instead, focus on your business goals and sell, sell, sell. Avoid getting distracted by speculation and keep your head down.

Business Trends: Survive and Thrive

The road ahead for small businesses will be challenging. The Small Business Administration estimates that 52% of businesses won’t make it past year five—and many pandemic-era startups are hitting that milestone in 2025. Why? Rising costs of debt, supply chain issues, and a tough economic climate are the culprits.

Interest Rates: Credit card rates hover around 25%, and business loans range from 6–12%.
Supply Chain Woes: Ongoing delays and tariffs add stress to meeting timelines and budgets.
Corporate Culture Shift: The “back to office” push continues, driven by CEOs citing productivity concerns. Expect resistance from employees, leading to potential brain drain.

What small business owners should do

2025 will be a make-or-break year. Stop overthinking and focus on daily, actionable sales activity. Now is not the time for endless planning—it’s time to execute. Build relationships, close deals, and make sales your top priority.

AI: The Biggest Game-Changer in 2025

Artificial intelligence will dominate the business landscape in 2025, with advancements that every entrepreneur must embrace. Key developments to watch include:

Generative AI Improvements: OpenAI’s next model promises leaps in text, art, and music generation.
AI Agents: Independent AI “assistants” will revolutionize workflows, taking initiative to improve your productivity.
Universal AI Integration: AI will become embedded in nearly every tool, from customer service to logistics.

How to prepare

Adopt a mindset of rapid experimentation. Identify inefficiencies in your business and test AI tools to solve them. Be relentless in seeking solutions but quick to discard tools that don’t deliver. The faster you adapt, the more you’ll gain a competitive edge.

Social Media: TikTok and the Rise of Owned Audiences

The social media landscape will continue to evolve in 2025. Despite political debates, TikTok isn’t going anywhere. The platform remains a powerful tool for small business owners, offering unmatched organic reach and opportunities for live shopping.

Video First: Written content is losing value as AI-generated spam floods comment sections. Platforms like TikTok, Instagram, and even X (formerly Twitter) are prioritizing video.
Own Your Audience: Social media algorithms can change overnight. Collect your followers’ contact information—email addresses, phone numbers—so you can control your connection with them.

What to do

Create video content and double down on engagement. Whether it’s short-form clips or live streams, showing your face and building authentic connections will be key. Use lead magnets, contests, and events to grow your email list and build direct relationships with your audience.

Live and Longform Content: Building Real Connections

As AI automates much of our communication, the hunger for real, human connection will grow. Live and longform content—whether through podcasts, livestreams, or webinars—offers a way to stand out.

Visual Shopping: TikTok and Google are leading the charge in making visual, live shopping a norm.
Authenticity Wins: People crave unscripted, genuine moments. Conversations, not overly polished interviews, will build trust and engagement.

How to adapt

If you’re not comfortable on camera, now is the time to get started. Consistent, live engagement will help you build trust with your customers and position you as a thought leader. Repurpose longform content into short clips, blog posts, and other materials to maximize your reach.

Key Takeaways

Politics: Charge ahead—significant impacts won’t hit until 2026.
Business: Focus on sales. If you’re not selling, you’re stalling.
AI: Embrace tools that save time and eliminate inefficiencies.
Social Media: Collect audience data and prioritize video content.
Content Creation: Go live, be real, and build deep connections.

In 2025, small businesses that prioritize focused action and authentic relationships will thrive. If you’re not already part of a supportive community, find one—or join ours at the Small Business Owners Community. Together, we can navigate these changes and grow stronger.

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Contributed by

Pat Miller

Founder of the Small Business Owners Community

Pat spent two decades in broadcasting management and hosting. After leaving the radio industry, he spent time consulting small businesses and realized the support system for entrepreneurs was broken. Where could you find help for improving small businesses and building real connections with other like-minded people. In June of 2020, the Idea Collective Small Business Community was born.