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Small and midsize business (SMB) owners are prioritizing growth as they look ahead to 2025, with nearly 50% planning to increase their investments in sales and marketing, as indicated by a recent survey conducted by Walmart Business and Morning Consult. This trend underscores a clear focus on expanding customer reach and enhancing competitive positions in the market.
However, achieving these ambitious growth targets can be challenging. Many SMBs grapple with operational hurdles that divert crucial time and resources from growth-centric activities. To overcome these obstacles, streamlining administrative functions and refining procurement strategies are essential for enabling business owners to concentrate on their growth agendas.
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Prioritizing Growth Investments
Sales and marketing are identified as the most critical investment areas for small businesses in 2025. The survey, which included nearly 500 participants, revealed that close to half of SMBs intend to increase spending to attract new customers and fortify their brand presence. Simultaneously, those surveyed indicated they expect to allocate nearly 40% of their workweek to handling administrative responsibilities, with spending, inventory, and payroll management consuming the most time.
A significant 79% of respondents reported spending and cash flow management as their biggest time-consuming tasks. Inventory management and payroll processing followed, cited by 65% and 51% of participants, respectively. These operational demands often hinder business leaders from focusing on strategic initiatives that could drive growth.
The survey also highlighted a reactive approach to inventory management, with nearly one-third of respondents relying on “out of stock” alerts rather than proactive, structured tracking methods. This lack of foresight can lead to inefficiencies and lost revenue. Implementing robust inventory solutions and proactive management tools can alleviate these issues and enhance growth potential.
Related: Why Business Owners Should Streamline Their Operations Now for Success in 2025
Enhancing Operational Efficiency
Small business leaders looking to free up time from administrative tasks can do so by integrating digital tools that automate routine processes like inventory control, payroll management, and expense tracking.
Moreover, many businesses are now leveraging buying platforms that provide both essential products and procurement tools to simplify purchasing and inventory oversight. These solutions help streamline procurement processes, enhance supplier relationship management, and automate reordering of critical supplies. By minimizing manual processes, owners can redirect their focus towards strategic initiatives, such as refining sales tactics or exploring new market avenues.
Utilizing Online Marketplaces
As SMBs aim for heightened efficiency, many are reconsidering their product sourcing methods. The survey indicates that 38% of respondents intend to increase their purchases from online marketplaces in 2025, with only 3% planning to cut back on their marketplace reliance. This shift highlights the growing attractiveness of online platforms for their convenience, cost-effectiveness, and expansive product selections.
For small business owners, trust plays a pivotal role in selecting an online marketplace. It’s crucial to ensure that products are fairly priced, meet quality standards, and are delivered reliably. Reputable marketplaces not only offer a diverse array of products but also provide the assurance of dependable fulfillment and straightforward purchasing processes.
Additionally, these platforms grant SMBs the ability to adjust their purchasing scale according to demand, thus mitigating the risks associated with overstocking and understocking. With access to a wide range of suppliers and bulk purchasing opportunities, small businesses can better manage their budgets and consistently meet customer needs.
Seeking Cost-Effective Solutions
As small business ambitions for growth rise, so do the associated cost challenges. The survey revealed that 75% of participants prioritize membership rewards and discounts when making routine purchases. Implementing cost-saving strategies is vital for maximizing budgets and ensuring profitability in an increasingly competitive environment.
Practices such as bulk buying, selecting vendors known for their affordability, and engaging in rewards programs can significantly positively affect financial outcomes. Small business owners who focus on leveraging cost-effective solutions will find themselves better equipped to reinvest those savings into growth efforts.
Adapting to a New Purchasing Landscape
The purchasing behaviors of small businesses are changing. There is a growing expectation that B2B buying experiences should mirror the convenience and flexibility of consumer shopping. Features such as mobile ordering, adaptable delivery options, and frictionless transactions are becoming standard requirements.
As SMBs prepare for growth in 2025, uncovering new operational efficiencies is crucial. By adopting innovative procurement strategies and minimizing time spent on administrative tasks, business leaders can allocate more energy towards expanding their customer bases and strengthening their competitive stance.
The overarching message for small business leaders is that investing in initiatives that drive growth while enhancing operational efficiency can pave the way for sustained success. Balancing these two priorities will help create a robust foundation for thriving in today’s rapidly evolving market landscape.
Source
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