5 Ways to Run a Startup or Small Business Successfully in 2025

Many people dream of launching their own businesses, driven by their unique ideas, financial independence, or the desire to make an impact on the world. Are you an entrepreneur looking for tips on how to steer your business toward success? Perhaps you’re a visionary ready to set sail on the uncharted waters of launching your very own startup. Well, look no further! This guide for startups is precisely the motivation you’ve been seeking!

Despite fierce competition across various industries, small businesses remain the backbone of the U.S. economy. According to the Small Business Administration, there are over 34.8 million small businesses in the US, accounting for 99.9 % of all US businesses.

These figures can make starting your own small business seem daunting. With such a surge in new ventures, how do you make your startup stand out? The goal isn’t just to launch another small business—it’s to build something distinctive, impactful, and built to last.

This startup guide is designed to help you do exactly that (and much more). Below, you’ll find essential tips to navigate the rocky early stages of building a company, avoid common pitfalls, and position your business for long-term success in 2025 and beyond.

The Small Business Timeline

Entrepreneurship is a thrilling journey, filled with rewards and countless challenges. Nevertheless, we can find inspiration in the motivational data recently released by the Bureau of Labor Statistics for aspiring entrepreneurs looking to start their own businesses.

• 20% of small businesses fail in the first year.
• 30% fail in their second year.
• 50% succeed past five years in business.

And for those determined souls, a remarkable 70% of small business owners stand tall after a decade of entrepreneurial excellence. These statistics are also an important reminder that starting and sustaining a new small business is no easy feat. It will take countless hours of hard work, extensive planning, and a willingness to make difficult decisions under pressure.

However, with enough determination and perseverance (and a bit of luck), your business can thrive and join the ranks of the resilient and successful!

1. Get Your Small Business Started

The right time to open a business depends on various factors. Consider the market demand for your product or service, your preparedness as an entrepreneur, and available resources. Once you are done, it’s time to prepare a well-defined business plan. There is no one-size-fits-all answer, but it’s often best to launch a business when you have thoroughly researched your market, validated your business idea, and feel confident in your ability to execute your plans successfully. Don’t jump the gun.

So what are some key factors to consider when starting your business?

Market Research

• Understand your target audience and their needs.
• Analyze the competition and identify gaps in the market.
• Validate your business idea to ensure there is demand for your product or service.

Business Plan

• Create a comprehensive business plan outlining your goals, strategies, and financial projections.
• Define your business structure (sole proprietorship, partnership, LLC, etc.).
• Plan your marketing and sales strategies to attract customers.

Funding and Finances

• Determine the initial capital required to launch and operate your business.
• Explore funding options such as personal savings, small business loans, investors, or crowdfunding.
• Set up a separate business bank account and implement effective financial management practices.

Legal and Regulatory Compliance

• Register your business with the appropriate government authorities.
• Obtain necessary licenses, permits, and certifications for your industry.
• Understand your tax obligations and employment law requirements

Team and Operations

• Decide whether you need to hire one or more employees or start solo
• Hire key personnel with the right skills and expertise to support your business.
• Establish lean, efficient operational processes and workflows for product development, customer service, and operations.
• Invest in the necessary equipment, technology, and infrastructure to support your launch.

Remember that each business is unique, so these key factors may need to be adapted and tailored to your specific industry and business model. Thoroughly addressing these factors can significantly increase your chances of a successful business launch and long-term growth.

2. Master the Art of Running Your Business

Starting a business is only the first step. The real challenge begins once the doors are open and operations begin. It’s essential to recognize that there isn’t a single right way to manage such ventures; success hinges on determining the approach that best suits your business needs.

In today’s fast-changing market, what worked for businesses five years ago may no longer be effective. Innovation and creativity are now highly rewarded; standing out from the crowd is essential for success. To stay relevant, you must be open to experimenting, iterating, and finding creative solutions for problems you face.

When embarking on the path to launching a successful business, Steve Jobs, the visionary co-founder of Apple Inc., stands as an inspiring figure to look up to, emphasizing the significance of perseverance with his insightful statement: “I’m convinced that about half of what separates successful entrepreneurs from the non-successful ones is pure perseverance.” This mindset is key to overcoming the day-to-day challenges of running a successful business.

Stay Disciplined with Your Business’ Finances

Naturally, one of the most common pitfalls for startups is running out of money. Even the most exciting and promising business ideas can fail without effective cash flow management. However, being too cautious and risk-averse can also land your business in hot water. Striking the right financial balance is absolutely essential. You want to invest enough to grow while keeping an iron grip on unnecessary spending.

The most effective financial hack to adopt is maintaining a delicate balance across all focus areas. Strive for equilibrium in managing your startup or small business to maximize efficiency and profitability.

Invest wisely in:

• Product development and improvement
• Market research and customer feedback
• Targeted marketing and branding
• A functional, user-friendly website
• Hiring and training key team members
• Legal, accounting, and compliance
• Customer service infrastructure
• Scalable tools and technology

Avoid overspending on:

• Flashy office spaces or décor
• Large ad campaigns with unproven ROI
• Stockpiling excessive inventory
• Hiring too many employees too soon
• Expensive software or tools you don’t fully use
• Unnecessary business travel
• Trendy but ineffective marketing gimmicks

Learn From the Mistakes of Others

Learning from mistakes is one of the most crucial aspects of running a successful business. Always be on the look out for ways to iterate and improve your business by learning from other companies’ failures. Take, for instance, VO2 Sportswear, a UK startup that, despite generating £250K in its third year, failed due to a lack of consistent cash inflow.

Legal mistakes can be even more devastating for even the most promising businesses. Theranos, a once-prominent startup valued at around $9 billion, aimed to revolutionize blood testing but it collapsed due to fraudulent claims and inaccurate technology, leading to legal repercussions and loss of credibility. Theranos’ founder, Elizabeth Holmes, was also sentenced to over 11 years in prison for defrauding investors.

Learn from the lessons of such failed ventures and use them as inspiration to educate yourself, vowing never to repeat their mistakes in your own entrepreneurial journey.

3. Using Technology in Your Small Business

Technology isn’t just a nice-to-have—it’s a competitive advantage. For startups and small businesses with limited time, staff, and budgets, smart use of technology can significantly increase efficiency, streamline operations, enhance customer experiences, and ultimately drive growth.

Whether you’re just getting started or looking to scale, embracing the right tools can help you run your business smarter, not harder.

Start With Everyday Efficiency

Integrating new tech into your business can seem daunting but it’s easier than you might think Small businesses can begin by leveraging tech in simple yet powerful ways. For example:

• Invoicing and billing software can automate payments and reduce errors
• Project management tools like Trello or Asana can improve team productivity
• Time-tracking apps help freelancers and remote teams stay accountable
• POS systems like Square or Clover simplify sales tracking for retail or food businesses

Remember that even small changes, like switching from basic spreadsheets to a dedicated accounting platform, can save multiple hours of administrative work every week. These hours can add up overtime, generating major cost savings to keep your business healthy for longer.

Embracing technology is especially crucial for managing consumers and marketing strategies. With limited resources and personnel, technology becomes a valuable ally, alleviating the burden on entrepreneurs who can’t do it all, even if they work tirelessly.

The Potential of Digital for Small Businesses

Adopting a robust digital presence, such as a user-friendly website and active social media profiles, can expand your reach and attract a wider audience. The potential rewards for these relatively trivial tasks are staggering.

Data from 2022 shows that a whopping 92% of US businesses are now active on social media, which is a remarkable jump from 86% in 2020. It’s incredible to see how these platforms have become integral to their strategies, helping them connect with customers and expand their online presence.

Key digital assets every small business should have:

• A fast, mobile-friendly website with clear CTAs and contact info
• A Google Business Profile for local visibility
• Social media profiles on platforms your audience actually uses
• Email signup forms to build a customer list over time

Approximately 71% of small businesses have established an online presence through a website, but surprisingly, around one in four small businesses still lack a website. This absence deprives them of the opportunity to leave a lasting impression on potential customers, possibly hindering their growth and visibility in the digital marketplace.

During the pandemic, 71% of growing SMBs survived through digitization. Embracing technology became a lifeline, and in the past year, 42% of SMBs recognized its power, accelerating their tech investments to navigate the ever-changing business landscape.

Additionally, 72% of SMBs expanded their online presence, indicating a shift in consumer behavior. Taking on digital tools enabled businesses to adapt, thrive, and reach a broader customer base. It’s never been clearer that prioritizing digital transformation remains crucial for small businesses to increase efficiency, competitiveness, and long-term sustainability.

CRM Software for Small Businesses

Before CRM (Customer Relationship Management) systems, managing customer relationships for small businesses involved sticky notes plastered all over the office, chaotic spreadsheets, and an endless phone tag game. Keeping track of customer details felt more like a wild scavenger hunt than organized business management. Thankfully, with CRM, it’s like having a superpower – everything is neatly organized, and customer data is at your fingertips, leaving you with more time to focus on growing your business.

According to Salesforce research, CRM software has the potential to boost sales by around 29%, enhance sales forecasting accuracy by up to 32%, and improve sales productivity by an impressive 39%.

Implementing CRM software can help manage client interactions efficiently, fostering better communication and personalized service. It is vital for small businesses as it enhances customer insights, improves customer service, streamlines sales processes, automates tasks, and fosters collaboration. Additionally, CRM software facilitates business growth, ensures data security, and enables performance tracking and analytics.

Companies are continually investing more and more in CRM to harness the many benefits it provides. A thorough analysis of Nucleus ROI case studies on CRM revealed that the average returns have surged from $5.60 to $8.71 for every dollar spent since 2011, making it a truly rewarding investment.

Among the leading CRM companies are Salesforce, HubSpot CRM, Microsoft Dynamics 365, Zoho CRM, and Pipedrive.

How are SMBs Harnessing the Cloud?

E-Commerce and Social Commerce for Start-Up Success

E-commerce has quickly become one of the most powerful tools for small businesses. Powerful platforms like Shopify, WooCommerce, and BigCommerce make it incredibly easy to build and launch an online store in just a few days.

And the digital shopping revolution shows no signs of slowing down! The Census Bureau of the Department of Commerce reported that US retail e-commerce sales for the fourth quarter of 2024 reached an estimated $308.9 billion. Ecommerce is no longer optional. It’s the new norm.

Even better, social media platforms now allow you to sell directly to your audience through social commerce. These tools include:

• Facebook Shop
• Instagram Shopping
• TikTok Shop
• Pinterest Shopping

Countless small businesses have been built entirely around social commerce, directly advertising to their target audience through social media. For example, Barbour, a well-established outerwear manufacturer, embraced Instagram Shopping and saw a 42% increase in sales and a 98% surge in website traffic from the platform.

The Importance of Email Marketing Technology

For SMBs with limited marketing budgets, email marketing provides an efficient way to reach their audience and engage with customers directly. You can establish stronger connections, nurture relationships, and build brand loyalty with personalized and tailored content.

Email marketing is the ultimate sales-driving powerhouse. According to recent surveys:

• 55% of U.S. consumers have made a purchase after receiving a promotional email
• 89% remain loyal to brands that “get them” and communicate effectively
• Email marketing delivers one of the highest ROIs of any marketing channel

Businesses can stay top-of-mind with their customers, reminding them of new products, promotions, or upcoming events. Tracking and analyzing email campaign performance allows SMBs to gain valuable insights into customer behavior, preferences, and engagement, facilitating data-driven decision-making for more effective marketing strategies.

As a versatile and scalable tool, email marketing empowers SMBs to compete with larger businesses, maximize their return on investment, and achieve significant growth in the digital age.

Several prominent email marketing software options are available, including big names like Mailchimp, Zoho Campaigns, Drip, Omnisend, ActiveCampaign, and Moosend.

The Adoption of Project Management Software by Small Businesses

Managing projects effectively is critical for small businesses, especially with remote or hybrid teams. Project management software like Monday.com, Trello, Asana, ClickUp, or Basecamp helps you stay organized, reduce miscommunication, and complete tasks on time.

According to research from GoRemotely and Monday.com:

• 54% of workers believe automation would improve productivity
• 70% want automation tools for repetitive tasks
• Teams using PM software saw a 52% improvement in communication

Small businesses often require a ton of tedious, repetitive work and these tools can be a godsend for efficiency and employee motivation.

Concluding Tech Tip: While recognizing the significant impact of technology on your startup or small business, exercise caution when allocating your budget. Invest in technology that genuinely contributes to the sustainability and growth of your business without overspending on unnecessary expenses.

4. How to Approach Staffing for Your Startup

Hiring the right people is one of the most critical, not to mention challenging, aspects of building a successful startup or small business. With limited resources and high expectations, early-stage companies need a team that is not just skilled, but adaptable, motivated, and aligned with the company’s vision.

According to the Small Business Administration, small businesses employ nearly half of the entire U.S. workforce. However, in a highly competitive job market, attracting and retaining the best talent can be a difficult task, especially when you have to compete with massive corporations with better perks and bigger budgets.

It’s important to consider the perspective of the worker. Let’s face it: working at a startup isn’t for everyone. According to the SBA, 5 out of every 10 new businesses don’t last past 5 years.

Stats like these sound pretty scary to a potential employee. Qualified candidates have become more open about working with startups over the years, but attracting them hasn’t gotten much easier.

A candidate with 5-10 years of experience with job offers from a world-renowned company, like Amazon, and your startup or small business will probably choose Amazon for obvious reasons. You often can’t win over top candidates with pure compensation. However, you can promise more purpose, growth opportunities, autonomy, and culture.

Who Should You Hire First?

Before you dive headfirst into recruiting, carefully evaluate what your business truly needs right now. Consider:

• Do you have the necessary resources to start hiring?
• What roles are essential to your day-to-day operations?
• Which responsibilities are draining your time as a founder?
• Where can new hires make the most immediate impact?

In many cases, early small business hires fall into general roles such as:

• Operations managers or generalists
• Marketing and sales specialists
• Product developers or engineers
• Customer support reps
• Bookkeepers or administrative assistants

However, it’s more important to think in terms of functions than job titles. Ask yourself what work must get done, and who is the best suited to do it?

Exploring Remote Hiring and Flexible Staffing

Full-fledged in-house teams may not be viable when seeking a quality workforce for your business. Instead, many small businesses are turning to remote employees, freelancers, or staff augmentation models to fill skill gaps cost-effectively.

Staff augmentation allows you to hire dedicated remote workers who work as part of your team but without the overhead of traditional employment. It’s a popular model because it’s flexible, affordable, and ideal for tasks like development, design, marketing, and customer service.

Freelancers may still be best for short-term tasks, staff augmentation is often superior in terms of consistency and alignment for your long-term business goals.

Employees are important for your business. But you have to make smart choices when it comes to hiring them. Choose the option that allows you to do more and cost less!

Best Practices for Hiring Smart

To build a reliable, cost-effective team from day one, follow these key hiring tips:

• Define role requirements clearly. Know what you’re hiring for before posting a job.
• Write compelling job descriptions. Highlight your mission, culture, growth opportunities, and the impact candidates can make.
• Use multiple hiring channels. Post on job boards like LinkedIn, tap into your network, and leverage social media or niche platforms like AngelList or We Work Remotely.
• Emphasize your vision and values. Culture fit and belief in your mission can be as important as skills.
• Promote growth opportunities. Startups often offer learning, leadership, and advancement potential faster than large companies.
• Streamline onboarding. First impressions matter. Make sure new hires feel welcome, informed, and supported.
• Offer recognition and appreciation. Feeling unappreciated is the top reason employees leave. A simple thank-you can go a long way.

5. Marketing and Branding Your Small Business

No matter how great your product or service is, your business won’t succeed unless people know it exists. Marketing is what connects your business with your customers, and branding is what makes them remember it. Together, they form the foundation for your entire startup’s visibility, credibility, and growth.

With the endless number of marketing guides and walkthroughs on the internet, it can be overwhelming to choose the rich marketing approach for your business, especially when you’re on a tight budget.

The challenging reality is that every business requires a personalized marketing strategy. Crafting a custom marketing approach often involves a “hit and trial” process, where you test various strategies to identify the one that yields the best return on investment (ROI). Don’t be too concerned if your first campaign falls flat. Much of marketing success comes through trial and error. Just learn from your mistakes and iterate until you succeed.

Marketing Budget (And Stick to It)

Before you dive into marketing tactics, you should establish a reasonable marketing budget. A common rule of thumb for startups is to allocate 2% to 5% of your gross revenue to marketing, although the exact amount will depend on your goals, industry, and current stage of growth.

Start small by allocating an amount that you can afford to risk and invest it in a well-established marketing strategy. If one of your initial strategies starts working, then you can decide to invest more in it. If it flops, iterate with a new strategy and try again. Irrespective of the marketing strategy you choose, don’t forget to track its performance.

For instance, if your current focus is to drive organic traffic on your website, make sure that you mend the exit pages, optimize conversion rates, reduce bounce rates, and modify your sales funnel as per the behavior of users on your website. Your marketing budget will disappear before you know it without the use of proper analytics.

Build a Strong Online Presence

A noteworthy statistic reveals that a significant 76% of consumers actively seek a company’s online presence before considering an in-person visit. That being said, the initial step in marketing your startup should revolve around establishing online visibility. Creating a robust digital footprint has become essential for every business.

Your online assets should include:

• A fast, mobile-responsive website with clear value messaging
• A verified Google Business Profile for local search visibility
• Active social media accounts on platforms your audience actually uses
• Basic SEO so that you appear in relevant search results
• A lead capture strategy (such as email opt-ins or contact forms)

Don’t try to be everywhere at once. It’s often better to choose platforms that match your audience and laser in on them. A B2B SaaS startup may find LinkedIn more useful than Instagram, while a handmade jewelry brand may thrive on TikTok or Pinterest.

Combine Organic and Paid Marketing Tactics

In the early days of your business, organic marketing such as blogging, SEO, email newsletters, and community engagement, is your best asset. It’s incredibly cheap and it can be vital in building long-term momentum. But don’t ignore paid marketing either. Even a relatively small budget on platforms like Google Ads or Meta Ads can help:

• Drive targeted traffic
• Retarget site visitors
• Test offers or messages quickly
• Build initial brand awareness

If you decide to go for the paid marketing route, just make sure that you closely monitor your return on ad spend (ROAS) and tweak your campaigns based on your analytics.

Competitor Research and Carving a Unique Path

Competitor research is an important tool for just about every single kind of small business, but it’s not about copying your rivals. It’s about locating gaps, recognizing successful strategies, and positioning your brand more effectively.

Ask yourself:

• What do they do well?
• Where do they fall short?
• What do customers say in their reviews?
• How can I differentiate my messaging, visuals, or customer experience?

You can use the insights gained from these answers to sharpen your brand positioning and stand out, rather than blend in.

Build Customer Loyalty from the Start

Smart marketing never ends after the first sale. In fact, repeat customers are typically much more profitable than new ones. That’s why it is so important to focus on maximizing customer retention from day one.

Building customer loyalty for your startup or small business will be tough. Stay clear of the click baits that promise to offer you the “golden mantra.” There is no easy hack or shortcut to this.

According to research from Wunderman, 88% of US consumers actively seek to interact with brands that surpass their expectations. About 74% of consumers believe that brands can achieve this by delivering exceptional customer service. Furthermore, 56% of respondents express stronger loyalty towards brands that truly understand their needs and priorities. Additionally, 89% of consumers will remain loyal to brands that “get me.”

Some simple ways to build and retain customer loyalty include:

• Offer exceptional customer service
• Personalize your messaging and promotions
• Use loyalty or referral programs
• Ask for feedback and actually use it
• Surprise customers with added value or small rewards

As a startup, you have a unique advantage: you can provide a personal touch that big corporations can’t. Respond to comments. Answer questions quickly. Remember names. These small interactions can have a lasting impact.

The Path to Success for Your Startup or Small Business

Building a successful startup or small business is one of the hardest but also most rewarding challenges an entrepreneur can undertake. It demands your undivided attention, your energy, and your ability to adapt to a constant stream of change. From refining your initial product idea to managing day-to-day operations, every minor decision you make today will shape the future of your startup.

Success won’t just happen by chance. It comes from taking calculated risks, responding to real customer needs, and continually improving your product, service, and strategy. As a founder, you have many roles to fill from visionary to problem-solver to strategist. To succeed, you have to be ready to learn from your mistakes, stay flexible, and regularly adjust course as new challenges emerge.