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As entrepreneurs, we always strive stay ahead of the curve. Whether that's in our industry – developing new technologies, services or strategies – or venturing into emerging markets. But with all the buzz around the latest tools, gadgets and startups, it can feel like the world moves faster than we do!
Fortunately, there are several methods to identify trends and put your finger on the pulse of the show business models. We may not be able to tell the future, but we get a glimpse of where the business world is headed.
Here are three business models that are likely to shape the future of entrepreneurship in 2025 and beyond.
Related: 4 Effective Business Models That Built Billion Dollar Companies
1. AI SaaS
I won't complain that artificial intelligence (AI) is a hot topic. Technology and the applications surrounding it are growing at a rapid pace. Likewise, too, are we seeing a reshaping of the Software as a Service (SaaS) sector.
First, SaaS companies are using AI technology to improve the customer experience, often through hyper-personalization. Where the SaaS industry has historically been quite “cold” in its approach to sales and customer retention, AI provides a high level of service even without the human touch. AI can analyze customer behavior, preferences and interactions to provide personalized recommendations.
Also, existing SaaS solutions are providing additional value and features to customers through embedded AI technology. Take search engine optimization (SEO) solutions like Surfer and Ahrefs, for example; both are industry-leading SaaS tools that have recently added extensive AI-enabled features such as AI article generator and AI-driven content editing (respectively).
The AI SaaS business model is becoming increasingly popular, profitable and attractive to both entrepreneurs and investors.
2. Small-scale agency
I recently attended the SEO Conference in Chiang Mai, Thailand, where Chris Kirksey of Direction.com talked about 2025 as “the year of the small-scale agency.” of economic pressures of 2024 have forced many small and medium-sized businesses (SMBs) to prioritize cost-effective marketing solutions. They want measurable results without the high prices of big agencies.
This does not mean that the big marketing firms are out of business; Of course, the opportunity exists if you know where to look. But we're likely to see an expansion of the “middle tier” of businesses, so to speak, looking for marketing services between $500-$2000 per month.
This creates fertile ground for small scale agencies to offer focused and affordable packages. Small agencies tend to be more nimble in their approach, attracting business owners who want to stretch their budgets without sacrificing quality.
We are also likely to see more agencies taking the “hybrid model” approach. This may include equipping business owners with DIY solutions with the availability of professional guidance/advice. For example, a small-scale agency can subscribe a business to a low-cost review management solution, but bundle monthly strategy calls, done-for-you integrations, and review generation.
This division below e digital marketing packages enable more cost-effective solutions while still providing business owners with the benefits of expert advice and knowledge.
Related: How to start a successful marketing agency from scratch
3. Comprehensive trade
Remember metaverse? It's still around, though you may not notice it. Virtual or augmented experiences are becoming increasingly prominent in commerce, although their application is subtle.
Instead of grand virtual worlds (common with online games), metaverse technology is being used to improve the ways in which consumers are able to view, research, experience and purchase products.
For example, The IKEA Places app uses augmented reality technology to allow customers to visualize furniture in their homes before buying, and Sephora Virtual Artist allows people to test makeup products on their faces through an app. Unlike early metaverse technologies, these applications do not scream “virtual reality;” instead, they are simply tools to increase convenience and interactivity.
As all-in trading becomes more common, we'll likely see this show up in all-in strategies. Virtual environments allow businesses to bridge the gap between a physical store and the online experience. It is already revolutionizing the way businesses sell and how consumers buy.
Business Models 2025: Fact or Prediction?
That being said, it's impossible to know for sure which business models will emerge and flourish in 2025. But there are signs. The rapid growth of AI technology is one. Changes in the global economy are another. And the slow but steady adoption of VR and AR points to an evolution in online commerce.
The key to staying “ahead of the curve,” so to speak, is simply to pay attention. What are consumers talking about in your space? In what ways is emerging technology removing friction and barriers from the sales process? What tools and strategies are making our lives (business owners and consumers) easier?
And how can you, as an entrepreneur, play a role in changing the landscape of your industry?
Related: How your business can be ahead of the curve by looking back and thinking forward