Business Owners: Three Key Trends To Watch In 2025
As we move into 2025, business owners are facing an evolving landscape that demands adaptability, strategic foresight, and a keen eye on emerging trends. While navigating a shifting economy, technological advancements, and changing customer preferences, there are three key trends that will shape the business world in the coming year. From the shortage of accountants to private equity’s growing influence on the lower middle market, and the ever-expanding role of artificial intelligence, these trends will have lasting impacts on businesses of all sizes. We will dive into each of these topics in more detail in the weeks to come, but here is what every business owner needs to know.
1. The Shortage of Accountants: A Growing Challenge for Businesses
For years, businesses have relied on skilled accountants to handle everything from financial reporting to tax strategies and compliance. But in 2025, many companies are going to find themselves scrambling to fill these critical roles. The accounting profession is facing a significant shortage of qualified professionals due to a combination of factors, including an aging workforce, the complexity of modern financial regulations, and a lack of younger professionals entering the field.
This shortage is particularly affecting small and medium-sized businesses, which often lack the resources to hire top-tier accounting firms. As a result, many business owners will need to get creative when managing their financial needs.
2. Private Equity: The Rush to Roll Up Lower Middle-Market Businesses
Private equity firms have been increasingly active in the lower middle market, snapping up businesses with potential for consolidation, operational improvements, or strategic expansion. This trend is expected to accelerate in 2025 as these firms look to benefit from economies of scale, reduce competition, and enhance profitability across their portfolios.
The lower middle market is becoming an attractive target for private equity because of its fragmented nature. Smaller businesses in this segment often have the potential to grow significantly through consolidation. In 2025, we will see more PE firms rolling up companies in sectors like healthcare, manufacturing, technology, and services.
3. The Explosion of Artificial Intelligence: A Transformational Force
Artificial intelligence (AI) is already disrupting industries across the globe, and 2025 will be the year when businesses can no longer afford to ignore its potential. Whether it is enhancing customer service, automating routine tasks, or providing data-driven insights, AI is becoming a central component of business strategy.
Conclusion: Stay Agile and Future-Ready
As we look ahead to 2025, the three key trends—shortages in accounting talent, the rise of private equity roll-ups, and the growing power of AI—represent both challenges and opportunities for business owners. To stay competitive, you will need to adapt by embracing new technologies, reevaluating your growth strategies, and staying ahead of market shifts.
The businesses that thrive in 2025 will be those that remain agile, make strategic decisions based on these trends, and prioritize long-term growth over short-term gains.
Look out in the coming weeks for the detailed breakdown of how to tackle the three trends in 2025 starting with: the shortage of accountants.
If you are evaluating your business plan and growth options, we would love to talk with you! Please reach out to set up a free consultation and our team will help get you to where you want to be.