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As entrepreneurs, we at all times attempt to stay ahead of the competition. Whether that’s in our own industry – developing recent technologies, services or strategies – or entering emerging markets. But with all the hype surrounding the latest tools, gadgets and startups, it could possibly feel like the world is moving faster than we are!
Fortunately, there are several methods for identifying trends and keeping your finger on the pulse of emerging business models. We may not find a way to predict the future, but we have insight into where the business world is heading.
Here are three business models that will likely shape the future of entrepreneurship in 2025 and beyond.
1. SaaS AI
I won’t lament that artificial intelligence (AI) is a hot topic. Technology and related applications are developing at a rapid pace. Are we also seeing a transformation of the software as a service (SaaS) sector?
First, SaaS firms are leveraging AI technology to enhance the customer experience, often through hyper-personalization. Where historically the SaaS industry has been quite cold in its approach to sales and customer retention, AI is delivering enhanced levels of service even without human intervention. Artificial intelligence can analyze customer behavior, preferences and interactions to supply tailored recommendations.
Additionally, existing SaaS solutions provide customers with additional value and features through built-in AI technology. Take, for example, SEO (search engine optimization) solutions similar to Surfer and Ahrefs; each are industry-leading SaaS tools that have recently added extensive AI-enabled features similar to AI article generator and AI-powered content editing (respectively).
The AI SaaS business model is becoming more and more popular, profitable and attractive to each entrepreneurs and investors.
2. Small scale agency
I recently attended an search engine optimization conference in Chiang Mai, Thailand, where Chris Kirksey of Direction.com talked about 2025 being “the year of small agencies.” The economic pressures 2024 has forced many small and medium-sized businesses (SMBs) to prioritize cost-effective marketing solutions. They want tangible results without the high prices of big agencies.
This does not mean that large marketing firms have gone out of business; it’s definitely a possibility if you know where to look. However, we will likely see an expansion of “mid-tier” businesses, so to talk, looking for marketing services ranging from $500 to $2,000 per 30 days.
This creates fertile ground for small scale agencies offer targeted, reasonably priced packages. Small agencies are likely to have a more flexible approach, which is attractive to business owners who need to stretch their budgets without sacrificing quality.
More agencies are more likely to adopt a “hybrid model” approach. This may include equipping business owners with do-it-yourself solutions with the opportunity to profit from skilled advice/consultancy. For example, a small agency might purchase a low-cost review management solution for the company but mix it with monthly strategy calls, one-on-one integrations, and review generation.
This reduction in digital marketing packages allows for less expensive solutions while providing business owners with the advantages of expert advice and insight.
3. Addictive trading
Remember the metaworld? It’s still around, although you might not notice it. Virtual or augmented experiences are becoming more outstanding in commerce, although their application is subtle.
Instead of impressive virtual worlds (often found in online games), Metaverse technology is used to boost the ways in which consumers can browse, research, experience and purchase products.
For example IKEA Places app uses augmented reality technology to permit customers to visualise furniture in their homes before purchasing, and Sephora Virtual Artist lets you test makeup products on your face via the app. Unlike early Metaverse technologies, these apps don’t scream “virtual reality”; as a substitute, they are simply tools to boost convenience and interactivity.
As immersive commerce becomes more common, we will likely see this in omnichannel strategies. Virtual environments allow firms to bridge the gap between a physical store and an online experience. It is already revolutionizing the way firms sell and how consumers shop.
Business models 2025: fact or forecast?
As stated, it is inconceivable to ensure which business models will emerge and thrive in 2025. However, there are some signs. One of them is the rapid development of AI technology. Another issue is changes in the global economy. The slow but regular adoption of VR and AR technologies indicates the evolution of e-commerce.
The key to staying “ahead of the curve,” so to talk, is to easily listen. What are consumers talking about in your space? How does emerging technology remove friction and bottlenecks in the sales process? What tools and strategies make our lives (business owners and consumers) easier?
And how will you, as an entrepreneur, play a role in changing the landscape of your industry?