In 2015, our company faced a brutal decision. We had built our business around providing low-cost consumer technology, but political changes introduced regulations that threatened our key revenue streams.

We did Tough call on the pivotmoving from the consumer market to the enterprise. It was risky, and many of my smarter friends and colleagues advised us against it, but in the end and thankfully, the transition paid off. This taught us a life lesson: the businesses that thrive are the ones that see big changes coming and adapt before they hit.

with The Trump administration Coming to power in 2025, we can expect changes to flow in every sector. New fees, taxes or compliance mandates can reshape markets overnight. Meanwhile, advances in generative AI and evolving global supply chains are pushing companies to rethink operations.

Leaders who recalibrate now will have a strong edge and be ready to seize new opportunities. Here are some key lessons we learned in adapting to changing markets:

1. Political changes require different revenue streams and strategic planning

At that time, we transitioned from consumer technology to enterprise and were focused only on hardware, with no recurring revenue or service. To stay resilient, we needed diverse revenue streams – a strategy that is especially important during geopolitical shifts.

like The Trump administration comes to power next year, expect changes in economic policy to impact businesses of all sizes. Trade restrictions, new taxes or even a stronger push TAA (Trade Agreements Act) compliance can reshape how companies approach operations, resources and growth plans.

If the new administration revises tariffs on foreign imports, for example, “Made in America” ​​will be more than just a slogan; it could be a requirement for all government contracts, squeezing companies dependent on cheap overseas manufacturing.

It could even move to “Designed in America,” spurring domestic innovation, fostering new technologies and creating a more resilient downstream supply chain—something critically needed across the U.S., as noted in the Times the last one Discussions of the law of chips.

Prepare by diversifying sources and production locations. A “dual supply chain” model that sources both domestic suppliers and US-friendly countries can minimize risk while opening doors to new opportunities.

If you are sourcing from a single region, you risk your business. Think of TAA compliance as a way to future-proof your company: as the government increases incentives and penalties, you'll want to be on the right side of these policies.

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2. AI is driving business results: Use it or leave it behind

Artificial intelligence is enabling businesses to predict consumer behavior, manage inventory efficiently, and offer better products. From predictive healthcare to food delivery, AI is improving the customer experience.

Take health care, where companies once avoided investing in hardware innovation are now deploying custom-built devices to capture and analyze patient data in real-time because it gives them an immediate competitive advantage. These devices generate insights that were once unimaginable, lower costs and open up new revenue streams.

We're also seeing large consulting groups and Fortune 500 companies that have historically been risk averse when it comes to hardware, seeing investing in more equipment engineering and design, because of its potential to generate original data – a hot commodity in today's market. Look no further than the Apple or Android ecosystems to clearly understand why it's vital to control hardware.

Every company should actively integrate AI into its operations or partner with firms that specialize in it. Many AI tools are available at low cost, and at the pace of AI advancement, those remaining will struggle to catch up with the early adopters.

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3. Supply chain resilience: “Just in time” is dead

The Trump administration's favoring of Made in America means it's likely to be important tax subsidies and incentives for design and engineering on home soil. However, taxes on foreign products are likely to rise, adding strain to an already volatile global supply chain.

For companies that rely solely on imports or exports, building supply chain resilience is essential. In 2020, global supply chain disruptions exposed disadvantages of “just-in-time” inventory models.leaving much effort to fulfill the orders. In 2025, if your supply chain isn't resilient, your business isn't either. “Just in Time” isn't just dangerous—it's history.

Today, keeping stock of critical components—like semiconductors, which can take months to obtain—is essential. Our company moved to a model with multi-supplier agreements and strategic inventory planning to prevent disruptions.

Additionally, building strong partnerships with suppliers is also essential. A true partner will take your call on their day off because they know your success is tied to theirs. Establish those relationships now, or risk paying a high price when supply chain shocks hit.

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As we enter 2025, don't assume that any component of your business is guaranteed. Smart leaders will adopt one zero trust mindset and take a look at their weaknesses before the storms hit.

ABOUT small and medium businessesit is especially important that perform a self-assessment: are your income streams diversified and, if possible, recurring? Do you have enough flexibility in your supply chain? Are you prepared to respond to the new regulations? What would happen to your business if sales stopped completely and how long would you be able to survive?

Look ahead, make changes now and use 2025 as a starting point for growth and strategic diversification. Companies that stay agile won't just survive—they'll lead the way.