As a small business owner, staying ahead of the curve is not just a challenge but a necessity. With the business landscape evolving rapidly, it's crucial to understand the emerging trends that will shape the way we operate in the future. From advancements in technology to shifts in consumer behavior, there will always be tension around a new trend that business leaders need to manage. So, we’ll take a look at some of the top trends in business sectors and business models in the coming year but also practically help direct your thought process so that your operational systems thrive in any new year in the future.
Before we get started I want to mention that just because there is a new business trend doesn’t necessarily mean you should follow it. However, if it fits your mission and will help you reach your vision for the future then it’s worth pursuing and pivoting. This is why you need an operational system that is executed well so that everyone is on the same page and has the ability to pivot to scale the business to a new level of sustainability.
Now that you have some context around my approach to the topic of managing business trends, let’s dive into some of the new trends for next year.
Here are five business models for 2025 that are trending, according to Google, along with my considerations that I suggest you seriously consider before investing in them or not.
Consumers are increasingly prioritizing sustainability and ethical business practices. Whether it's reducing carbon footprints, implementing fair labor practices, or supporting social causes, businesses that embrace sustainability and ESG initiatives are gaining a competitive edge.
Consideration(s): Integrate sustainability practices into your supply chain, product offerings, and corporate culture. Or possibly consider acquiring or entering into a strategic alliance or partnership with a company that could create a win-win situation for both companies.
2. Digital Transformation and E-commerce
The digital revolution is reshaping industries across the board, with e-commerce leading the charge. From traditional retail to service-based businesses, having a strong online presence is essential for reaching customers in 2025. For years now, the internet has become the new phone book and it’s only increasing faster and faster every year with the rise of A.I. that produces easy to digest search summaries and constantly trying to put the best fit solutions in front of everyone who searches a topic online.
Consideration(s): Not every digital solution is right for every business, however there are typically a couple of solutions that fit every business. So, consider investing in either a robust e-commerce platform, digital marketing strategies, and/or a customer relationship management system to stay competitive in the digital marketplace.
The COVID-19 pandemic has accelerated the shift towards remote work, and I believe it’s here to stay but not for all companies and not across the board. However, hybrid and flexible work arrangements could attract top talent, increase productivity, and reduce overhead costs. This is particularly good news for service based start-ups because you don’t need a physical office, at least in the beginning.
However, here is a word of caution for you in a flexible or remote work environment. If you don’t have a strong operational system that will keep everyone accountable to reach their goals, great people that understand the mission, and are hard workers then this option will not work for you.
Consideration(s): If it makes sense for your business model then consider investing in remote collaboration tools, cybersecurity measures, and employee wellness programs to support a remote workforce effectively.
The pandemic also sparked a renewed focus on health and wellness, both in the workplace and the marketplace. Especially in the mental health space. This is also due to the increase in technology that has the tendency to occupy every minute of our day and is proven to cause mental fatigue and depression. We have to learn how to manage our busy lifestyles and technology consumption so it doesn’t ruin our physical or mental health and our workforce.
Consideration(s): This is a trend that every business must invest in because if your people aren’t healthy then your business will not be healthy. Prioritize employee well-being by offering flexible work arrangements, mental health support, and wellness programs. Consider incorporating health-focused products or services into your offerings to meet the growing demand for holistic wellness solutions.
If you own a product based business you are fully aware of the global supply chain disruptions that have occurred over the past several years. They have dramatically highlighted the importance of building creative and resilient supply chains.
Consideration(s): Consider diversifying your supplier base, investing in local sourcing and manufacturing, and leveraging technology to improve supply chain visibility and agility. By prioritizing supply chain resilience, you can mitigate risks and ensure continuity of operations in the face of future disruptions. The expense is far less than having little to no product!
Now, in addition to business trends for next year I also want to highlight business models for those business owners that are considering a new way to package, market and sell their products or services. This could be a great opportunity to take your business to the next level either by creating sustainability or maybe even “10x’ing” it!
Now, here are four business models for 2025 that are trending, also according to Google. These trends may be more attainable than starting a whole new business or adding another line of revenue. However, pay close attention to my considerations to ensure that you make the best decision for you and your business instead of just trying them because they are trending.
1. Franchising's Adaptability
Franchising remains a reliable business model, offering entrepreneurs the opportunity to start their own businesses with the support of established brands. This strategy is a great way to grow your business without having to be involved with the day-to-day responsibilities of other locations.
Consideration(s): Exploring franchising opportunities in emerging markets and innovative concepts to capitalize on shifting consumer preferences is a great way to scale. However, the risk here is that your brand gets watered down and customer loyalty suffers, ultimately leading to a lot of messy financial and possible legal situations. So, if you are serious about this model then you have to have a great franchise selection process and amazing systems and support in place.
Network marketing, or multi-level marketing (MLM), and Affiliate Marketing is experiencing a resurgence as people seek flexible income opportunities due to inflation or the desire to break free from the traditional workforce. This model is also gaining momentum fast because of the rise of so many social influencers. It reveals how important the fact is that people like to do business with, or take recommendations from, people they know, like and trust.
Here are the differences between the two models although they are related:
Consideration(s): However, you need to understand that you will have to implement new software that can be pretty expensive or build it yourself as well as work with a consultant/coach to truly understand the do’s and don’ts of the industry. Years ago MLM companies got a really bad reputation for being pushy, annoying and an undesirable thing for a lot of people to be involved in. However, if you invest and equip your Independent Distributors properly the investment has a great chance of “10x’ing” your business, fast!
Consideration(s): Because there are no other commission combinations that referral partners get like the MLM model you will have to most likely “go big or go home” to attract people to keep your company top of mind. Meaning, you will most likely need to offer substantial commissions and if you have a monthly product then allow for monthly residual commissions if their initial referral becomes a repeat customer. Many companies will even pay up to 30-50%, and even up to 90%, to make a “big splash” in the market quickly. However, you can certainly attract people with 10-20% residual commission as well, especially if the product or service is expensive. In these cases, people will set up an affiliate marketing business and do the marketing for you in exchange for the commissions. Again, another great win-win situation.
Both strategies have amazing potential but be sure to research which one would fit your business best. Then, create a great system that will start communicating to your current customers of the new opportunity.
3. Outsourcing Opportunities and Agile Operations:
Business process outsourcing (BPO) and knowledge process outsourcing (KPO) offer opportunities to streamline operations and access specialized expertise. For example, consultants and consulting companies, fractional leadership, strategic alliance companies, and partner companies, just to name a few.
Consideration(s): To get started, consider outsourcing non-core functions to focus on core competencies and adapt to changing market dynamics quickly. This can be very powerful but just all these other trends proceed with caution. The last thing you want to do is outsource something to someone or a company that will not do the right things for your business. However, outsourcing will take up-front time and resources to set up but it will help your operations become much more efficient and help you scale while saving you money. So, work with reputable companies with strong recommendations and agree on the contract and expectations up-front to avoid any potential pitfalls.
Fourth and last, embrace technology-driven innovation to stay ahead of the competition. Explore emerging technologies such as artificial intelligence, blockchain, and the Internet of Things (IoT) to enhance operational efficiency, improve customer experiences, and drive growth.
Consideration(s): Technology is evolving at a rapid pace and it seems like there are tech solutions for every problem you could ever have and help you save time and money in the process. However, just like outsourcing, you will want to ensure you work with reputable companies. In addition, be sure that you fully understand the problem completely before you try to fit a tech solution to it. If you don’t, you will end up wasting resources and frustrating your team in the process.
The business landscape is evolving rapidly, and small businesses must adapt to thrive in 2025 and beyond. By understanding and embracing emerging trends in both business sectors and business models, you can create an operational system that is agile, resilient, and future-proof. However, don’t be afraid of the change and risk which can be very scary. Afterall, one thing is certain, you will not grow if you don’t embrace some level of change and risk.
So, how do you move forward? Stay informed, stay innovative, and stay ahead of the curve by creating an operational system that will allow for constant review and improvement. Then, go for it and always remember that the future belongs to those who are willing to embrace change and seize calculated opportunities.
Enjoy the Process!
*Disclosure: I am an Affiliate partner but only because I believe in the product/service. Please let me know if you have questions or concerns about any of my affiliate partners.