Running a Business in 2025

Newsletter #6: Business Development Tips & Tricks

"Hey Reader,
What will 2025 look like for your business?"

Before I peer into my crystal ball, I would suggest you answer that question for yourself. Of course, I can't answer that for everyone! But I can tell you that 2025 is NOT going to be business as usual.

I've been devouring macro-economic data from leading institutions. My take is:

Barring World War III, 2025 could be a great year for most of us. But you have to be in a position to capitalize on your plans.

Here are 5 suggestions for improving your business in 2025

Write and Execute Your Business Plan

Create or update your business plan. Then you will need to execute it through then end of 2025 and 2026. Whether you are a startup or if your already in business, the AI revolution, availability of capital, lowering inflation, and changes in monetary policy means your business needs to transform... and quickly!

Now that prices are high and companies have spent some time taking profits, barriers to entry, access to capital, high unemployment (in the tech sector) means you could get outplayed this year. My advice is to Execute, Execute, Execute on that business plan!

Be Prepared

Stocks and bonds typically have an inverse relationship. But bonds had a year of mixed signals while stocks continue to defy the odds. Without expending too much energy on this, there is a healthy amount of investment capital available, housing prices will remain high, while housing sales will further stagnate. Extending Tax cuts, reducing government spending, and public workforce reductions are on the table. It's too early to see how all of that shakes out.

Be Prepared: Hope for the best and prepare for the worst by getting aggressive on sales and eliminate debt. Streamline the number of vendors and sharpen your pencil.

Government spending makes up 23% of the total US GDP, but a whopping 70% (circa 2016) is not contributing to productive output of the nation. DOGE wants to drastically cut spending. Can they do it without affecting GDP?

Tip: Hope for a streamlined bureaucracy, prepare for a recession.

AI is Your Friend NOT Your Foe

If you are in a professional services industry: You are in trouble. Not in 2025, but in the next 3-10 years AI will be able to replace virtually all service industry jobs. Natural Language Processing (NLP) and Large Language Models (LLM's) are redefining human-technology interaction. But last year, AI gained the ability to apply math and algorithms to story problems to 90% accuracy.

Tip: Service industries such as: Accounting, engineering, law, medicine, real estate, and software, to name a few will be severely disrupted by AI.

Find Alternatives to Chinese Goods

Geopolitical forces are unpredictable, especially now that regional conflicts are spreading to global uncertainty. Sourcing from China is no longer safe. That includes everything from iPhones to Rubber Duckies. Enacting Tariffs is an Executive Action that does not require congress's approval if items threaten our national security. Trump and much of the US believe anything coming from China poses that risk.

Source substitute goods from home, Mexico, South America, India. I know it's harder said than done and more expensive, but a 60% tariff is going to kill yours margins anyway.

Rethink Subscription Models

Are you paying for subscriptions that you do not need? On average, businesses pay PMPM (Per User Per Month) on 14 different subscriptions. Many businesses are purchasing subscriptions that are being underutilized. Manage them closely so they don't get out of hand.

Many people don't know Microsoft 365 business subscriptions come with 40 different services and tools that replace on-off subscriptions. Consolidate to Office, then look for specialty services not covered.
Make sure your cloud and on-premises system are backed up regularly. Ask yourself, If you stopped paying a monthly fee, would your assets disappear? If yes, then you probably don't own your content, web site, blog or business data.
Find IT support that is competitively priced and predictable.
Cyberthreats are real and they are debilitating, costing thousands in remediation and lost productivity. Plan ahead for business continuity, security, and compliance. Businesses need to redefine security and approach relationships with a zero-trust mindset. Parking your whole company in the cloud and forgetting about it is risky.