As an entrepreneur or small business owner, you may not have time to stay on top of business trends. So we’re bringing them to you. Your business should evolve with changes in the world around you, both to make your strategy more effective and to make your life easier.

Learn 7 top business trends in 2025, and which ones your business may want to focus on in the coming year.

What Should Companies Focus on in 2025?

There are several trending business ideas that are worth your attention as a small business owner. 

New technologies, like voice-assisted technology, can save your business time and money—or leave your business behind your competitors. Keep an eye out for ways to get a competitive edge and make your customers’ experience more streamlined. And think about attention to how these may affect your finances and budget. 

Here are the top 7 key trends worth watching this year, according to economic research institutes and trends forecasters.

1. Data and Digital Transformation

Creating a strong online presence in 2025 goes beyond just having a website or Facebook page. It means ensuring your business is accessible through multiple digital channels, honoring customer preferences for a wider range of payment options beyond personal or business credit cards, and engaging with customers where they are, whether that’s through social media marketing, or SMS or email marketing. 

Mobile optimization is particularly crucial, as more consumers are shopping and conducting business through their smartphones.

Data is driving a significant amount of this growth.

Business leaders are using data more than ever to make decisions about the best digital marketing or customer acquisition strategies. This is called data-driven decision making and helps to improve results and focus adjustments you need to make. 

The ability to collect and analyze data relatively easily and inexpensively has become a game-changer for many small businesses. With user-friendly analytics tools now widely available, businesses of all sizes can make informed decisions based on consumer behavior and market trends rather than expensive market surveys or just intuition. 

You don’t have to be a data analytics expert to gather insights to power your business strategy. Small business owners can use business intelligence tools like Google Analytics and Microsoft’s Power BI, or AI tools (see below) to analyze data for them. 

Then apply these insights to grow your business. Even service-based businesses will often benefit from digital marketing campaigns.

At a minimum, your business should have an online presence to drive customer engagement, whether that’s Yelp or TripAdvisor for hospitality businesses; Amazon, Google, or Etsy for product-based businesses; or social media platforms like Facebook, Tiktok or Instagram for different types of businesses. 

You don’t have to be everywhere: find out where your ideal customers hang out online and focus your efforts there. 

2. Artificial Intelligence Transforms Small Business Operations

Research by Bredin shows that “SMB adoption of AI is growing fast.” Its November 2024 survey found that 21% of very small businesses (fewer than 20 employees) were actively using AI, up from just 8% of those surveyed in November 2023.  

You can use AI automation to improve sales with email campaigns or demand forecasting, to complete market research, or to support customer service. AI tools can also make client lead processes easier and smoother. 

AI and machine learning can even help your business manage its finances better. Businesses need to understand exactly where they stand so they know what to do next, and data can help.

Rather than tracking all your data yourself, for example, Nav offers your small business a real-time look into small business loans and financing options based on where you are today. Nav’s Cash Flow Health also helps you track your business’s cash flow for real-time insights. 

Read: Top AI Tools for Small Business

3. Remote Workforce Offers Opportunity

Remote work has come to the forefront post-pandemic. For employers, being able to hire from all over the country (or the world) can help draw in top talent and give small businesses access to a pool of applicants they couldn’t find locally. Many workers prefer working remotely, or in a hybrid situation, so consider how you might make this work for your business. 

Remote work has its hurdles, including lack of connection and digital burnout. Keeping high levels of connectivity with remote employees requires focused team-building initiatives. 

Companies that can embrace remote or hybrid work will have a competitive advantage. “Organizations that take flexible hybrid work approaches will get better access to more talent,” writes Brian Elliott for MIT Sloan Management Review.

4. AI and Chatbots for Customer Experience

Your business may be able to use AI automation to improve sales with email campaigns or demand forecasting, to complete market research, or to support your customer service team. AI can also make your client lead process easier and smoother. 

An example: No matter what business you operate in, responding quickly to questions and inquiries from customers and prospects is often key to making the sale. Automation with artificial intelligence (AI) tools may be able to help you grow your business without hiring a lot of new employees. 

Using chatbots to answer basic customer questions can decrease your business’s dependence on hiring customer service representatives. As long as the chatbot functions well, customers may not know the difference — and if need be, you can allow them to transfer to a live person when needed. 

Want to post on social media or build a website, but don’t know what to say? AI content creation and generative AI tools make it easier than ever to ramp up your small business marketing strategy.

5. Mobile Payments Can Increase Sales

The shift in digital strategies is accompanied by changing payment preferences, with only 9% of Americans now preferring cash. Customers expect more and more to be able to pay in multiple ways, and the payment processing industry is expected to expand to $160 billion by 2028. 

Today, more and more customers want to be able to use their phone as their wallet. Working with a payment gateway is important, but you may want to consider adding mobile payment options like Apple Pay, Google Pay, or Stripe to your offerings.

Learn how to find the best payment processing services here.

6. Sustainability Drives Customer Loyalty 

Environmental consciousness has moved from a nice-to-have to a business necessity for many businesses. Customers increasingly prefer to support businesses that demonstrate environmental responsibility, and climate change is affecting supply chains across industries. Smart small business owners are finding ways to incorporate sustainable practices that both benefit the environment and improve their bottom line.

This can include simple steps like reducing packaging waste, implementing energy-efficient practices, or sourcing from local suppliers. The key is to make sustainable choices that align with your business model and communicate these efforts effectively to your customers. Planning for potential climate-related disruptions to your supply chain is also becoming increasingly important.

7. Digital Security and Data Protection Is Mandatory

Small businesses face an evolving regulatory environment in 2025, particularly around data privacy, AI governance, and beneficial ownership reporting (BOI reporting). 

With more business operations moving online and the rise of digital payments, small businesses are finding themselves prime targets for cybercriminals. Small business identity theft is also on the rise. 

Small businesses face unique challenges in data security. While they handle sensitive customer data just like larger corporations, most don’t have extensive IT resources and security infrastructure of bigger companies. 

But they need to be vigilant too. New privacy regulations in states like California and Illinois require stricter data handling procedures, including requirements for explicit customer consent for data collection and enhanced cybersecurity measures.

The good news is that advancements in security tools mean they may be more accessible and user-friendly for small businesses. Cloud-based security solutions now offer enterprise-level protection at small business prices. Multi-factor authentication, encrypted payment processing, and automated security updates are becoming standard features in many business software packages. 

Pay attention to how you are collecting and sharing sensitive customer data. Create a customer data retention policy and make sure you communicate it within your business. 

What Businesses Are Trending in 2025?

There are several emerging business trends that will probably gain steam this year. Business models that will most likely be trending in 2025 include those focusing on:

Healthcare and wellness

Hospitals are the biggest industry in the US by revenue, according to Ibisworld. While hospitals are not small businesses, think of all the products and services hospitals require. 

Or look into other areas of healthcare that are booming, including businesses that focus on well-being, weight loss centers, and more. Also on the IBISWorld top ten list of industries by revenue, for example: health and medical insurance, and drug, cosmetic and toiletry wholesaling. 

Even manufacturing kombucha—considered a health food—is among the top ten fastest-growing industries by revenue, according to IbisWorld. 

E-commerce and online shopping

E-commerce sales are projected to reach 22.6% of all retail sales globally by 2027, according to Statista. Many of your potential customers are looking for a seamless online shopping experience, according to Global Payments research, and often want to shop directly from social media sites or online searches. 

Home services businesses

If you’re looking to open a new business, you may find it helpful to know that home services businesses are opening at a faster rate than any other type of business, according to Yelp research data. 

Whether it’s a handyman service, window washing and pressure washing business, or furniture assembly, you may be able to create a successful business by helping renters and homeowners improve their living spaces. 

Pet related businesses

If you love animals, a startup focused on the pet care industry could offer tremendous opportunity in 2025. 

Many people see their pets as family members and are willing to spend money on their care, comfort, and wellness. The trend has expanded beyond traditional services like grooming and pet sitting to include luxury pet hotels, gourmet pet food preparation, pet fashion, specialized veterinary services, and tech-enabled pet monitoring solutions.

The rise of pet-focused e-commerce and subscription-based services presents particularly strong opportunities for small business owners. Mobile grooming services, pet wellness apps, and personalized pet food delivery services are seeing substantial growth. 

Additionally, the integration of technology in pet care – from AI-powered pet health monitoring to automated feeding systems – is creating new niches for innovative small businesses.

What Are the Key Challenges for Business in 2025?

The biggest challenge for many businesses going into 2025 may figuring out how to adapt and plan a rapidly changing business landscape.

As Deloitte points out in its most recent United States Economic Forecast:

“The US economy remains strong with robust consumer spending and high business investment, but its future trajectory largely hinges on the policies of the incoming administration.” It goes on to say “This forecast is among the most uncertain in recent times, so we include two alternate scenarios to capture a full range of possible outcomes for the coming years.”

Hiring will likely continue to be a challenge. There have been more job openings than people looking for work since mid-2021. These numbers create a challenge for small businesses who may not have the resources to provide perks that larger companies can offer to draw potential employees. (Again, remote work or hybrid work may be a way to cope if your business can make it work.)

Immigration reform may result in fewer workers for jobs that already face labor shortages, and may make it difficult for small businesses to navigate an already tight labor market. 

“While labor markets have cooled off since the peak in 2023, there is still significant demand for immigrant labor,” notes Marco Tabellini, an assistant professor in the Business, Government, and International Economy Unit of Harvard Business School. “Restricting documented immigration will put upward pressure on wages,” he warns. 

Consumer prices have been dropping since the start of 2023, which started with the largest price increase since the early 1980s. That means business owners should have an easier time with supply for the products and supplies they need for business operations. 

But tariffs may change that, and many businesses are stocking up on supplies in anticipation. Small business owners who may not have the financial resources to do the same could be at a disadvantage if the costs of supplies rise, or if customers pull back on spending. 

Moving Forward

Success in 2025 will come from finding the right balance between embracing new technologies and maintaining solid business fundamentals. Start by assessing your current digital capabilities, evaluating where new technologies could benefit your operations, and planning for sustainable growth. 

Remember to stay flexible and keep customer needs at the forefront of your decisions.

The key is not to try to hop on every new trend, but to select and adapt the changes that make the most sense for your specific business and market. By staying informed and making strategic choices, small businesses can thrive in the evolving business landscape of 2025.

How Nav Can Help You Stay Ahead

Nav is here to use your business’s data to find the right solutions to make running your business smoother and easier. 

Nav is the only place to check, monitor and manage personal and business credit scores and reports  in one place. 

Nav Prime gives you up to two actively reporting tradelines reported to all major business credit bureaus to build business credit history this coming year.Cash Flow Health tool will help you stay on top of your business’s cash flow to help you make better financial decisions.