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A quarter of a century has passed since we rang in the start of the new millennium. Small 91�㽶��ɫ��Ƶowners trading then and still operating now know the importance of adapting and staying ahead of trends. Adapting keeps your business fresh, relevant, and appealing to customers while remaining compliant with new government regulations - so let’s explore the top seven trends to watch in 2025, so you can move into the new year with confidence.

1. The integration of artificial intelligence

Most people are now familiar with artificial intelligence (AI), and many have experimented with freely available apps. But by 2025, businesses are expected to integrate AI at a rapid pace.

Many UK businesses already use AI in some form. The previous government’s AI cyber security , published in May 2024, found that 68% of businesses had adopted at least one type of AI. The survey also highlighted the most popular AI applications:

• Natural language processing and generation - (38% of businesses surveyed)

• Machine learning - (27%)

• Computer vision, image processing and generation - (25%)

• Robotic process automation - (8%)

The range of apps already being used demonstrates how businesses are increasingly turning to AI to improve productivity, enhance customer service, and even adapt core business models, as seen with large enterprises like and . In 2025, AI will continue to drive entirely new ways of working and boost business growth for small UK businesses.��

And there’s no time to waste. PricewaterhouseCoopers’ (PwC) 2024 found that businesses embedding AI into their operations are twice as likely to see value compared to those that haven’t. That means delaying AI adoption could leave your business struggling to ever catch up with competitors already using it, so there’s never been a better time to integrate this new technology into your business.��

2. A sustainable way of working

Running a sustainable business is quickly shifting from a desired approach to an essential one. A found that 73% of customers consider the environmental impact of a product “very important” or “rather important” when making purchasing decisions. Additionally, 60% said they specifically buy products because of their lower environmental impact.��

Sustainability isn’t just about ticking the green box either. Beyond its global importance, it is becoming a regulatory obligation in the UK, with the Labour government pledging to make Britain a .��

Building sustainable practices into your business can unlock incentives too. The UK government various environmental tax relief schemes for sustainable businesses to use, while businesses that use more energy and resources have to pay more through things like the .

Together, these incentives and growing customer demand for eco-conscious businesses create a fruitful environment for sustainable trade.

3. Making Tax Digital (MTD)

The UK government set out a in July 2020, and MTD is a key part of it. This new way of managing tax requires businesses and sole traders to:

• keep digital records

• use software that works with

• submit updates every quarter, bringing the tax system closer to real-time

This new development is coming into effect soon, so it’s essential for businesses to understand what’s required in 2025 in order to meet fast approaching deadlines. By 6 April 2026, small businesses with annual business or property income exceeding £50,000 must comply with the new MTD requirements. By April 2027, this will apply to those with annual  business or property income exceeding £30,000.

4. The ultimate customer experience

A recent Harris Poll/Redpoint found that 63% of consumers view personalisation as a standard service. While digital technology and marketing enable businesses to reach more customers, those customers still expect to feel valued and treated as individuals.

You can stand out in this space by getting to know your customers. If you use AI for customer service, providing more data will improve its responses, so it pays to learn as much about your customers as you can. Communicate directly with your customers where possible, using their name if given, and remember to tailor your communications to specific accessibility needs.

Whenever possible, go above and beyond to add that human touch. Consider:

• Handwritten notes or personally signed correspondence

• Goodies like branded stickers and prints

• Personal messages on birthdays or anniversaries

• Branded merch 

• Discounts for loyal customers

You might consider subscription-based models too, which offer stability and build customer loyalty. Whether it's curated product bundles, exclusive access to services, or digital content, the subscription economy is , growing some 435% in the past decade.��

There’s also a push from the UK government to encourage customers to shop local, with initiatives like seen in December. If your business trades on the high street, be sure to support your local community to encourage customers to visit you over the competition.

5. A creators economy

Platforms like YouTube, TikTok and Instagram have paved the way for a thriving creator community. Many people now make money through online sales, advertising and brand deals. The creator economy currently totals around $250bn, but it is by 2027. It’s no wonder so many are leaving full-time jobs to pursue a new life as an online entrepreneur.��

While not every business owner needs to become an online influencer, it’s wise to integrate this world into your business. You can hire influencers to promote your small business for example, or go further by developing your own social media strategy.

It’s important not to rely on just one platform - recent developments in the USA may lead to TikTok being entirely, for example. Be sure to research what each platform offers and tailor your content accordingly. You may need to hire additional employees to manage this work - it takes time and progress can be slow. However, with the expected growth of the creator economy in both the UK and beyond, you don’t want to miss the opportunity this trend offers your business.

6. Permanent business rates

In the 2024 budget, Labour announced that the current 75% discount on business rates, set to expire in April 2025, will be replaced by a permanent 40% discount, capped at £110k per business. You can use the to calculate your future rates.

If your business pays business rates, now is the time to re-evaluate your financial plans ahead of April 2025. Adjust your budgets and consider price increases if needed to offset the reduced discount. As always, be sure to communicate any adjustments to your customers to help them understand the reasons behind any price changes.

7. Security and resilience 

Research by shows that nearly six in 10 customers worry about being hacked or tracked through their online activity. Therefore, it’s crucial to not only build and maintain trust with your customers, but there’s also a real opportunity to offer reassurance to your customers too.

You can put several strategies in place to help ensure any customer data you hold is stored safely. A good starting place is to: 

• Train employees to store data securely

• Stay updated on GDPR regulations and adjust security procedures as needed

• Provide regular training and refreshers for staff

• Change passwords regularly and use two-factor authentication when possible

Taking these simple steps and communicating your approach to customers can help give peace of mind, which may also encourage customers to not only provide more of their data to help your business strategy but also increase their trust in your brand.��

As technology advances and customer concerns and expectations evolve too, staying ahead of the curve has never been more important. Whether it’s introducing new AI tools to your business or securely storing customer data you need for marketing and product development, resilience to this ever-changing landscape can keep your business on track for the next quarter-century and beyond.