Insights to Craft a New Path Forward in 2025
By: Raj Tulshan – Founder and Managing Partner at Loanmantra
As we look back at 2024, beverage businesses reflect on the past year that tested their adaptability, resilience and creativity. Navigating economic uncertainties and leveraging new forms of technology, business owners demonstrated remarkable ingenuity in a post-Covid business world. Here’s a look at the top ten small business lessons. What we’ve learned—and real-world examples of how to put these insights into action.
1. Adaptability and Flexibility can lead to Economic Sustainability.
Small businesses in 2024 faced fluctuating interest rates and inflation. Their sound financial management and steady operations kept them afloat.
Navigating Economic Volatility: One bakery in Chicago got creative with the changes in the market. Sweet Spot Bakery adjusted its pricing model to account for rising ingredient costs. By introducing dynamic pricing based on their real-time expenses, they maintained profitability without alienating customers. Puesto, an Italian restaurant chain from La Jolla, California raised prices 8% during busy periods and reduced them 20% during slower periods. A case study shows they boosted sales by 12% while retaining their employees.
Strategic Cost Management: A small retail store in Atlanta reduced their costs by renegotiating contracts with suppliers. By switching to energy-efficient lighting they saved 15% on monthly operational expenses. Green upgrades to a business may not only offer cost savings but can help businesses qualify for tax breaks and incentives in some cases.
2. Embraced Technology like AI, Automation and Augmented Reality.
Businesses that found a way to incorporate technology and embrace digital tools and AI flourished. They improved their efficiency, reached new audiences and gave customers a more ways to interact with products, services and brands.
Adopting AI and Automation: Many business owners turned to AI to reduce manual and repetitive tasks. AI-driven software automates bookkeeping, scheduling, customer interactions, and even some marketing jobs. For example, a small law firm in Denver implemented AI-driven document review software and cut their case preparation time by a staggering 30%.
Augmented Reality: Lush Looks Boutique in New York integrated an augmented reality (AR) feature for virtual try-ons on their Shopify store, which increased online sales by 40%. Industries including tourism, real estate and even education are using AR to help consumers visualize themselves in various settings. This is especially important as a new generation of consumers place more value on having authentic experiences and will spend money for higher levels of quality of drinks, foods and experiences.
3. Focused on Customer – Centric Approaches.
Better understanding and catering to customer needs proved vital for growth this year. And that means establishing a two-way dialogue between beverage companies and their patrons and taking that feedback to put a plan into action. People want to feel acknowledged, taken care of and treated well.
Personalization Matters: FlexFit Studio in Los Angeles used CRM software to send personalized workout tips and promotions, boosting membership renewals by 20%.
Customer Feedback as a Guide: Green Bean Café in Portland added vegan options to their menu after analyzing online reviews and feedback from their clients. Understanding this new consumer segment brought in a 25% increase in local visits.
4. Adopted Shifting Workforce Trends.
Retaining top talent required flexibility and a greater focus on the employee’s well-being.
Flexibility Retains Talent: Numerous small businesses juggled the balance of remote and hybrid work models, aiming to strike the right balance for their business. In one example, CreativeHive Agency in Austin retained their top performers by offering remote work options and subsidizing their employee’s coworking memberships. This resulted in a 10% productivity boost.
Employee Well-Being is Non-Negotiable: A small landscaping business in Miami introduced mental health days for their staff and even partnered with local mental health experts for their people. This initiative is estimated to have reduced turnover by 30%.
5. Boosted Online Security.
Protecting sensitive information has become critical in a digital-first world. This is one of the business lessons that will be essential for the future.
Protecting Against Cyber Threats: Many businesses implemented multi-factor authentication and regular employee trainings to reduce cyber-attacks. These proactive approaches helped stave potential data breaches and strengthen client trust. The U .S. Chamber of Commerce has taken a more active role in educating companies on how to ensure their businesses are secure in a digital, online world.
Steps to Boost Cybersecurity: The Chamber advises taking these steps boost security. Use antivirus software and keep all software updated, enable Multi-Factor Authentication, manage Cloud Service Provider (CSP) accounts, secure, protect, and back up sensitive data, secure payment processing, control physical access, back up your data and control access to company data.
6. Made Sustainability and Community Affairs top Priorities.
Customers increasingly value purpose-driven businesses that prioritize sustainability.
Consumers Value Purpose-Driven Brands: Younger customers put their money where their values are. Many small businesses, like EcoBrewery Co. in Asheville, stood behind their mission and values to attract new customers by introducing recyclable packaging.
Social Responsibility Focus: According to Nielseniq, Gen Z prioritizes brands that align with their ethical and social principles: environmental sustainability, social justice and corporate transparency. Supporting brands that demonstrate sustainable sourcing, eco-friendly packaging and corporate social responsibility initiatives. For this generation, buying a product is not just a transaction but a statement of their personal values and beliefs.
Investing in Sustainable Changes: Businesses turned to local grants and funding to help them create greater value. BrightTech Manufacturing in Dallas installed solar panels on their physical space, reducing energy costs by 20% and earning a sustainability award from a local business association.
7. Adapted to Capitalize on New Opportunities.
If the past several years has taught business owners anything, it’s that being able to pivot quickly is what can enable them to thrive sometimes.
Pivoting Pays Off: Finding the white space in the market isn’t always about the product or cost. Sometimes innovation comes by way of constraint. A photographer offered virtual photo shoots. unlocking new revenue streams and client base.
Global Opportunities: A startup with large amounts of overhead sourced parts throughout the world reducing their production costs by 25%.
8. Leveraged Support Network Partners.
Strong partnerships and mentorship provided essential support this year.
Collaboration Over Competition: In St. Louis, several small boutiques banded together for a holiday market, increasing foot traffic and boosting sales for their collective audience.
Seeking Expert Advice: SmartStart Co. in Atlanta was one of many SMEs to join their local chamber of commerce mentorship program. Through their participation, they gained insights that grew their revenue up to 15%.
9. Secured Needed Access to Capital.
One of the top concerns for small business owners is securing capital. Access to capital is a prime barrier that keeps business owners from starting or expanding their business. This will continue to be a top concern heading into the new year. How important is access to capital for small businesses?
A study by US Bank found that 82% of businesses fail due to cash flow mismanagement. Almost half (43%) of small businesses applied for a loan last year according to Fed Small Business.
Ready Paperwork for Steady Financing: Business owners plan ahead by gathering documents that are required for financing before funds are needed. For example, many business owners set up a free, secure account at loanmantra.com so that everything needed to secure funding is ready.
Building Relationships with Lenders: Sometimes a line of credit through a local community bank or credit union can enable a business to grow and expand.
Government Programs Are Valuable: Small Business Administration loans grow communities, particularly underserved communities, through small businesses.
10. Small Business Lessons Continue
These lessons from 2024 highlight the resilience and creativity of small business owners. Applying strategies–from dynamic pricing to customer loyalty programs–businesses are surviving and growing. Carrying these insights forward into 2025 can help craft a roadmap to navigate the new challenges and opportunities ahead.
Raj Tulshan is founder and managing partner at www.loanmantra.com. Reach him via Linked-in at https://www.linkedin.com/in/tulshan/.
