What challenges do businesses face in 2025?
As the fifth anniversary of the coronavirus pandemic rolls round, we can all reflect on the curve ball it threw us, forcing us to adapt quickly to stay in business. Five years on, the world continues to change and we have to ask, “what challenges do businesses face in 2025?”
There are certainly many challenges on the horizon. However, we believe that open-minded businesses can continue to thrive in this changing world. In this blog, we look at the five biggest issues and how UK businesses can withstand them.
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Climate change
It’s easy to think that climate change is all about protecting rainforests and polar bears, neither of which we have in the UK. But climate change is affecting UK businesses. We really felt for businesses in Glasgow who lost days of trade to Storm Eowyn in January this year, when shops and services were told not to open because the extreme weather posed a risk to human life. And what about the dilemmas faced by businesses that sell plastic products, for example, or cars or fast fashion?
What you can do
If your business is directly impacted by climate change and new consumer trends, you need to find a way to make your business future-proof. Whether you keep a bigger financial reserve to cover you when storms prevent you from opening, or find new products that appeal to a more environmentally-conscious market, an open-mind will provide a solution. What we cannot do is pretend that climate change isn’t happening.
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Price fluctuations
Everything is expensive at the moment. Labour, raw materials, rent, energy…the list goes on. Impressively, however, many businesses are finding ways to do more with less, making their income go further while maintaining the great service they’re known for.
What you can do
Reviewing your financial position can often help you find savings. From unpaid invoices to obsolete subscriptions, chasing what you’re owed and clearing out what you don’t use can add more money to the pot.
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High interest rates
One of the reasons that prices are rising is that interest rates are high. This can be a big problem if you’re repaying a business loan or you have a mortgage on your premises.
What you can do
Again, reviewing your finances might reveal areas where you can make savings or reduce the size of your loans. And if you’re lucky enough to be saving or you’re keeping funds back for a big project, you can take advantage of higher interest rates and make your money work harder.
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Employment rights
The Employment Rights Bill that came into force last summer was created to protect workers. However, it has created problems for employers, particularly in the retail, hospitality and care sectors. You can read our blog on it here.
Similarly, the increase in employers’ national insurance contributions has made some businesses think twice before taking on new staff.
What you can do
Outsourcing gives you a way to work with a team without having to become an employer. And if outsourcing isn’t an option, you could work with an HR expert and review your processes. Checking your processes for compliancy might reveal areas for savings too.
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AI
AI is a somewhat mixed blessing. In the plus column, it is speeding up business processes for many of us and creating new opportunities and ways of working. In the minus column, it is undermining jobs in the creative industries and driving down the quality of internet content.
What you can do
Forward-looking businesses in 2025 need to be open to the benefits of AI but also aware of its pitfalls. Find out more about AI here.
Get Ahead supports agile businesses
If our blog has made you feel ready to take on 2025’s challenges, we’re here to help. Our finance experts can help you review your accounts and find savings, while our HR outsourcing managers can talk you through new employee rights and keep you up to date. Our business development experts can compile risk assessments for your business. And our virtual assistants can work with you on business continuity planning, so you’re ready for any eventuality. We can also help you access the right AI for your business, making the most of new technology and saving time and money into the bargain.
All our support is fully flexible – choose from fixed hours every month or ad hoc support.
Explore our site to find out more, follow us on social media, or talk to your local regional director. We’re ready for whatever 2025 wants to throw at us!
