As we move into 2025, small and midsize businesses (SMBs) are focused on expanding their operations and increasing customer engagement.
As we move into 2025, small and midsize businesses (SMBs) are focused on expanding their operations and increasing customer engagement. According to recent surveys, nearly half of SMB owners plan to increase their investments in sales and marketing this year. However, achieving sustainable growth is far from simple. The challenges of day-to-day operations, like managing administrative tasks and optimizing procurement strategies, can quickly divert attention from the more critical growth-driving initiatives. Small business leaders who focus on enhancing operational efficiencies while also investing in growth will set themselves up for success.
Sales and marketing are at the forefront of SMB investment priorities in 2025. The drive to capture new customers and strengthen brand presence is clear, but a major hurdle for many small business owners is the amount of time spent on administrative duties. Nearly 40% of their work week is spent managing inventory, payroll, and cash flow — all essential but time-consuming tasks. This leaves little room for high-level strategic efforts that are critical for growth. Furthermore, a significant number of SMB leaders use inefficient, reactive methods to manage inventory, often relying on "out of stock" triggers instead of automated systems or structured tracking. This can lead to stock shortages or excess inventory, both of which are costly and hinder business scalability.
One effective way to free up time for growth initiatives is by embracing digital tools that automate repetitive tasks. Automation can streamline inventory management, payroll processing, and expense tracking, allowing owners to focus more on areas that directly influence revenue, like refining marketing strategies and exploring new market opportunities. A proactive approach to these tasks can ensure that the business is running efficiently, with less manual intervention. By shifting to automated solutions, small business owners can create more space to focus on critical activities such as customer acquisition, product development, and market expansion.
Another significant shift is happening in the way small businesses are approaching their procurement strategies. Many are turning to online marketplaces to simplify the purchasing process and manage their supplier relationships more effectively. In fact, 38% of SMBs plan to increase their use of online marketplaces in 2025. These platforms provide a broad selection of products, competitive prices, and the convenience of bulk purchasing, which can be particularly helpful in managing costs. The ability to scale purchases based on demand helps prevent both overstocking and understocking, enabling businesses to keep their operations smooth and their budgets in check. Trust and reliability are key when selecting a marketplace, as SMBs need assurance that they are receiving quality products at fair prices and that orders will be fulfilled on time.
Cost efficiency is a critical factor for SMBs looking to scale their operations while maintaining profitability. As businesses grow, keeping expenses under control becomes more important than ever. About 75% of SMB leaders prioritize finding discounts or rewards programs for routine purchases, knowing that every dollar saved can be reinvested into strategic growth initiatives. Bulk purchasing, leveraging vendors with competitive pricing, and joining loyalty programs are all effective ways to reduce costs. By optimizing spending and seeking out cost-effective solutions, SMBs can allocate more resources toward expanding their customer base and strengthening their market position.
Lastly, the purchasing habits of small businesses are evolving. In 2025, many owners expect the B2B purchasing process to mirror the ease and flexibility of consumer shopping. Features like mobile-friendly ordering, flexible delivery options, and seamless transactions are becoming the norm. As businesses continue to prioritize ease of use and efficiency in their procurement strategies, adopting these models will help them stay competitive and responsive to market needs.
Small business owners who focus on operational efficiency while investing in growth initiatives will be better positioned for long-term success. By reducing the time spent on administrative tasks and optimizing procurement processes, they can devote more energy to activities that drive revenue, such as sales and marketing. In a dynamic market environment, the balance between managing operations efficiently and driving growth is key to thriving in 2025 and beyond.
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