Strategies for staying competitive in 2025

By Rob Wolfman

In 2025, small and medium-sized businesses (SMBs) can expect to navigate a landscape marked by shifting economic conditions, evolving technologies, and changing consumer behaviors. Although the challenges are significant, so are the opportunities. Adopting a proactive and forward-thinking approach is essential to setting your business up for success in the new year. As we advise our management partners for the year ahead, we’re looking toward hiring, marketing, technology and margin protection as keys to growth in 2025.

Whether you’re scaling your team, optimizing operations or expanding your online presence, there are several key areas to focus on to stay competitive in the coming year. 

Punch above your weight with key hires

Nailing strategic hires is one of the most impactful ways to ensure growth and now is an opportune time as we enter 2025 at an inflection point in the labor cycle. By most accounts, the tight labor market we experienced post-Covid has somewhat loosened and the availability of A-level talent for SMBs is high – partially driven by mass layoffs we witnessed in 2024.

Don’t limit hires based on the business you have today. Where possible, stretch to hire the best people who can get your business to where it needs to go. Talent acquisition should be seen as an investment, not just an expense. Look for people who will significantly move the needle for your business, even if you’re a smaller player in your sector. Importantly, don’t wait for your competitors to make the first move; act to secure talent that will help your company rise above the competition.

Invest in organic content marketing

According to Emarketer, digital advertising spend within the consumer packaged goods industry is expected to increase by 12% in 2025. With rising spend and costs for paid media, SEO, and social media, relying solely on traditional digital marketing channels is becoming increasingly difficult. As competition for attention grows, organic content marketing is one area where SMBs can stand out and provide ongoing value to their audience. Investing in high-quality organic content now will pay dividends in the long term, as it builds a solid foundation for brand visibility and trust.

Instead of focusing solely on paid ads, allocate some resources to developing blog posts, podcasts, videos and other content formats that resonate with your target market. Search engines continue to prioritize high-quality, relevant content; it can boost your SEO and nurture deeper connections with your audience. Building this foundation today can help you capture more organic traffic, generate leads, and build your brand authority over time.

Build your online presence with e-commerce integration

Today, an online presence is no longer optional, especially for B2B suppliers. If your business doesn’t have an e-commerce component, you risk being left behind. Customers expect to engage with businesses digitally — whether that means browsing products, placing orders or receiving customer support. This is particularly true for decision-makers in the millennial and Gen Z cohorts who are digitally native and prefer making online purchases. If you’re not meeting these expectations, competitors will.

Investing in e-commerce solutions and an intuitive online platform should be a top priority. This could mean upgrading your website, adding online ordering capabilities, or integrating an online support system. As industries increasingly shift toward digital-first models, being able to offer seamless online experiences is a vital part of staying competitive.

Protect margins amid rising costs

The post-Covid era was marked by frictionless price increases and higher margins for many companies. However, those days are starting to fade, and inflationary pressures are forcing SMBs to be more strategic in protecting their margins. Increasing prices without losing customers is becoming more challenging, so companies must find other ways to safeguard their profitability.

In 2025, leadership teams will need to develop intentional margin-protection strategies. This could involve improving operational efficiencies, cutting unnecessary costs, diversifying revenue streams, or renegotiating supplier contracts. Focus on optimizing your cost structure while still delivering high-quality products and services. By being proactive about margin protection, you can ensure long-term sustainability.

Develop a liquidity strategy and positive flywheel

Strong liquidity is more important than ever in an uncertain business environment. Whether you’re scaling your business or dealing with economic uncertainty, building a liquidity cushion can provide a buffer against unforeseen challenges. However, liquidity isn’t just about having cash on hand; it’s about using that capital strategically to fuel growth. Simultaneously, building a positive flywheel is important — a self-reinforcing cycle that drives continuous improvement in your operations and bottom line. For example, reinvesting in key equipment, expanding product offerings, or optimizing processes can generate more revenue, creating more liquidity to invest back into the business. Focus on how these elements work together to build a sustainable, thriving business in the long term.

Navigating the complexities of a changing business landscape requires bold action and thoughtful strategy. By focusing on key hires, investing in organic content marketing, enhancing your online presence, protecting margins, and developing a liquidity strategy, you can position your business for success in 2025 and beyond. Adaptability and foresight are key; the businesses that act decisively and strategically today will be the ones that thrive in the future.

Rob Wolfman is managing partner at Montage Partners, involved in all aspects of the company’s investments including sourcing and execution, valuation and structuring and portfolio management. Wolfman currently serves as a director of Advantco International, Craft Beverage Cooperative, Equity Methods, METALfx, Puroflux, RDD Associates, Solly Baby, Southwest Data Products, and United Right-of-Way. Wolfman holds bachelors’ degrees in finance and accounting from Washington University in St. Louis and an MBA from the Wharton School at the University of Pennsylvania.