4 Ways Small Businesses Can Pull Ahead of Competitors

“Change is the only constant in business,” said Ruchi Gupta, a certified SCORE mentor and an adviser with the Small Business Development Center of the Texas Gulf Coast Network. “Market trends are always changing. People are always adapting and evolving. New technologies become available. It’s an ongoing process. You have to keep up.” According to Gupta, 2025 is the year to lean in to these changes, not shy away from them. Whether it’s adopting digital tools, strengthening cybersecurity or building a sustainable business model, these trends aren’t just opportunities; they’re necessities for staying competitive.

She shared strategies for small business to embrace artificial intelligence, e-commerce platforms, local resources and sustainability.

Digital Technology

As technology continues to blur the lines between physical and digital spaces, small businesses must bridge that gap seamlessly. “Digital technology is rapidly engulfing us,” Gupta said. “Not long ago, we worked on laptops and desktops. Now, people make a lot of their purchasing decisions on their mobile phones. They don’t have time, they have limited memory, and their scope of concentration has narrowed.” To thrive, small businesses must embrace digital technology. “That’s my No. 1, go-to advice for 2025,” she said.

The more confident consumers get with their mobile devices, the more they will reach for their phones for online shopping, Gupta said. “Your potential customers are scrolling through social media, browsing websites and shopping online during their lunch breaks or while waiting in line.” Their buying decisions often happen in seconds. “If you’re not in that digital space, you’re missing out on an opportunity to engage with them,” she said.

Embracing this transformation isn’t just a competitive advantage; it’s now essential for survival. She asked of small brick-and-mortar businesses: “Can you have a website? Can you add a parallel e-commerce business? If not, what can you do to integrate digital tools into your market strategy or business model?”

She encouraged entrepreneurs to start with the basics:

e-commerce website: Make it user-friendly, include up-to-date product or service information and offer a way for customers to order or buy from you directly. Offering convenience for busy customers through online ordering significantly enhances the customer experience and drives repeat business, Gupta said.
social media: “Identify where your audience spends their time,” she said. “Are they on Instagram, Facebook or LinkedIn?” Then create a strategy to connect with them there. For example, a local bakery or cafe can keep showcasing handcrafted drinks in a cozy setting on Instagram to reach both locals and tourists, she said.
optimization for mobile: Your website and communications should be mobile-friendly. A poor mobile experience drives people away.

While digital tools can seem overwhelming at first, they’re becoming increasingly accessible. Setting up an online store is straightforward on platforms like Shopify, Squarespace and Wix make. “There’s so much available out there,” Gupta said. “All that you need to do is to look at what tools are available and what makes sense for your business model.”

Artificial Intelligence

AI offers capabilities once thought out of reach for small businesses. While some entrepreneurs still feel daunted by it, Gupta encourages a shift in perspective. “AI is right now a scary demon, but every new technology starts that way,” she said. “It’s on us to see how we can leverage it to the best of what it can do for us.”

It doesn’t have to be complex. It can be a practical and accessible tool to streamline operations, improve decisionmaking and even foster creativity. “The goal for 2025 should be: How do you take your mind off the daily dillydally of your business, the daily work operations?” she said. “You should be coming at it from a standpoint of: ‘I don’t want to work in my business; I want to work on my business.’” She argued that automation of your processes will create time to do so.

She suggested areas where small businesses can use AI effectively:

workflow automation: AI tools like chatbots or scheduling assistants can handle repetitive tasks like scheduling, responding to customer inquiries and managing inventory.
market strategies: “By analyzing customer data, AI can help you understand who your audience is, where they reside, what they care about and how best to reach them,” Gupta said. AI tools can segment your customer base and track how many leads you’ve engaged with and how many you’ve converted. They also can recommend personalized marketing strategies based on customer preferences.
financial analysis: AI can simplify accounting tasks, generate cash-flow projections and highlight opportunities to lower costs or increase profits.

Gupta noted that many AI tools are designed with small businesses in mind. “It’s important to look into some of the free AI tools out there,” she said, adding to start small. Maybe automate a single task or use AI to create a social media post, for instance. “Test what works for your business, and adapt as you learn,” she said.

MORE FROM THE ICSC SMALL BUSINESS CENTER: How Small Companies Can Use AI, Plus 6 Specific Tool Recommendations

Cybersecurity

Safeguarding customer data and business operations is critical, Gupta said. Cyberthreats make headlines when they target large corporations, but “hackers know that small businesses might not have [protections like] firewalls or data encryption,” she said. “That makes them an easy target.”

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Phishing scams, malware, ransomware and other threats can cripple a business. Gupta suggested foundational yet effective security measures:

strong passwords and multi-factor authentication: Multi-factor authentication adds a layer of verification.
regular software updates: Outdated software creates opportunities for hackers. Set systems to update automatically to minimize delays and vulnerabilities.
employee training: Employees are the first line of defense. Training them to recognize phishing emails and suspicious activity should be a routine part of your business operations.

Handling customer data responsibly is as important. Gupta advised asking yourself: “Do I have the right terms and conditions and privacy policies in place?” Customers have a right to know how their data will be stored, used or shared. Moreover, failing to protect customer data can lead to legal and financial consequences.

Target, for example, faced a class action lawsuit after hackers accessed the personal and credit card information of approximately 40 million customers. The breach caused the retailer significant financial losses but also irreparable reputational damage. Cybersecurity is not something small businesses can afford to overlook. “This is one of the biggest pitfalls for small businesses,” Gupta warns. “Cases of data breaches are increasing by the day,” she says and staying unprotected isn’t an option anymore.

If managing cybersecurity feels overwhelming, seek external support. Many cybersecurity companies offer consultations or audits to help you understand and address your risks.

Local Resources

In today’s world, everything is local, including resources and support systems available to small businesses. Libraries, for instance, are transforming into hubs for small business development, offering workshops, co-working spaces and free business resources.

MORE FROM THE ICSC SMALL BUSINESS CENTER: Public Libraries Emerge as Hubs for Entrepreneurs

Similarly, Small Business Development Centers, funded by the U.S. Small Business Administration, provide customized support like consulting, workshops and networking events.

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Community colleges are also stepping up to create innovative support systems for small businesses, such as certification programs that provide essential skills outside of a degree program. Houston Community College’s Eastside Small Business Development and Entrepreneurship Center, for instance, provides education, training and resources for local small businesses. Other community colleges help entrepreneurs develop business plans and pitch ideas to investors. “Academia today is trying to develop an ecosystem for small businesses like never before,” Gupta said.

“Local resources support businesses at every stage of their journey. Whether you’re in the ideation phase, launching your first product, scaling your operations or overcoming stagnation in a mature business, local programs offer guidance and strategies to help you move forward.” The long-term value of fostering talent, encouraging innovation and building networks is a win for the local interests, too, Gupta said.

Sustainability

Sustainability offerings and practices are “quickly becoming must-haves rather than nice-to-haves” for customers, Gupta said. “Sustainability is a business advantage. More and more people are wanting to buy from businesses that have a sustainable model and are helping the environment.” That’s a huge trend for 2025, she said.

Gupta offered ways small businesses can make their operations eco-friendly:

waste reduction: Evaluate your processes for opportunities to minimize waste, such as switching to digital receipts or reusable packaging.
energy efficiency: Upgrade to energy-efficient lighting and appliances. Even small changes like LED bulbs can reduce costs and your carbon footprint.
sustainable sourcing: Choose suppliers that prioritize environmentally responsible practices. “If you sell products, ask yourself: Are they made from sustainable materials?” she suggested.
It’s no longer as hard to implement these practices, Gupta said. “Government incentives and tax breaks for green initiatives make these changes more accessible.” Plus, she said, “brands that prioritize sustainability stand to gain a competitive edge.”