Small business owners closed out 2024 wondering if their tech stack could handle not just the holiday rush, but the challenges of 2025. While 40% of SMBs admit to experiencing “AI FOMO,” according to a survey by my company Builder.ai, they’re hitting real roadblocks: budget constraints, integration headaches and that nagging question: “Is this the right time to jump in?”

Nearly a decade ago, software development was an unplanned route for my professional journey and not something that I anticipated. I was co-founding my photography company and found myself frustrated at software developers who were supporting us at that time. This sparked a slew of ideas around the question of if professional engineers are struggling, how could entrepreneurs or startups create their own apps with little to no technology experience?

I can imagine how hard it is for small businesses to cut through the noise and stand out during the busiest shopping time of the year. The pressure to promote your business effectively, while juggling sales, marketing and customer service, was overwhelming.

Think of AI like that perfect holiday gift — initially daunting to pick out, but ultimately transformative. From handling routine customer queries to streamlining inventory management, AI is like having a tireless assistant who never asks for overtime.

But here’s the thing: Choosing the right AI tool shouldn’t feel like blindly picking from a gift catalog. The key is finding a solution that plays nice with your existing tech and feels less like a disruption and more like a natural extension of your business. Think of it as adding a new team member who seamlessly fits into your existing crew.

Related: Almost Half of VC Funding Raised Last Year Went to Startups in One Category

Implementing AI during uncertain times

In today’s uncertain economic climate, having AI in your corner is like having a business stabilizer. It’s not just about automating tasks — it’s about making smarter, data-backed decisions and a reality check: resistance vs. progress. Small business owners face unique challenges like proper support, education and resources to implement AI solutions across their business. In my experience, I’ve seen one of the biggest issues in the technology industry — the overwhelming hurdles to entry for entrepreneurs, especially those operating a small business.

Let’s address the elephant in the room: AI isn’t exactly the new kid on the block, but its recent explosive growth has many small business owners feeling uneasy. The concerns are real: 29% worry about tech failures, 28% about employee pushback and 27% about costs burning a hole in their pocket, according to the Builder.ai survey. Add to that the 30% who are watching the AI regulatory landscape with raised eyebrows.

While these fears are valid, I’ve learned strategies to navigate these concerns and discovered in my journey that it is not the technology that is the barrier for users, it’s the need for understanding and deploying it to make it accessible and integrated throughout a business. It is critical for small businesses to stay competitive and not fall behind on technological advancements in their respective industries. While there are apprehensions and outside factors to consider, small businesses should embrace AI as soon as possible to improve their business model and ROI as we head into the new year.

The AI advantage: More than just a seasonal helper

But here’s an interesting twist — despite these concerns, 54% of small businesses are planning to increase their AI investment this year. Why? Because smart business owners know that staying competitive means embracing innovation, even when it feels uncomfortable.

Beyond the holiday chaos, AI brings year-round perks. Picture this: smoother app development, better time management and communication that flows effortlessly both inside and outside your business. The best part? You’re always in the driver’s seat, with transparent processes that keep you in control. AI can be the support you need near the end of the year and can work to streamline processes and make your overall workflow more efficient.

When seeking an AI tool, look for one that acts as a partner of your team and easily integrates with existing technology and infrastructure already in place. It should be straightforward, fully transparent and give small business owners complete control of the project they are working on. During uncertain times, AI and software solutions can provide the structure and support to keep small businesses on track, no matter the storm.

Related: These Days, Everything Is ‘Powered By AI.’ Here’s How to Tell Hype From Real Innovation.

The final take

The holiday season reminds us that sometimes the best gifts are the ones that seem a bit intimidating at first. In my own career, I’ve learned firsthand that technology should empower entrepreneurs and make them feel like superheroes, it shouldn’t set them back. AI might feel like that complex gadget you’re hesitant to unbox, but once you do, you’ll wonder how you managed without it. And unlike those holiday sweaters that end up in the return pile, this is one investment that keeps on delivering value.

For small businesses leaping headfirst into 2025, the question isn’t really whether to adopt AI, but how to do it smartly. With the right approach and tools, AI can be the gift your business didn’t know it needed — no gift receipt required.

Spencer Rascoff co-founded Zillow. Austin Allison sold his company to Zillow for $125 million. Now they’ve teamed up to co-found Pacaso and transform the $1.3T vacation home market.

Pacaso’s streamlined digital marketplace is leading the co-ownership revolution, making luxury vacation homes accessible, fully utilized, and hassle-free. And the results speak for themselves: nearly $1 billion in transactions, 1,500+ happy homeowners, $100 million+ in gross profits, and impressive growth on their H1 2024 earnings, the company says.

With properties in 40 markets, Pacaso is using co-ownership to make luxury vacation homes accessible worldwide. And this is just the start. Even better – investors can join for just $2.70/share.

Next-generation co-ownership

Pacaso’s co-ownership model is powered by proprietary tech and an innovative structure that eliminates the headaches of traditional vacation home ownership. Here’s how it works:

• Seamless transactions: Clients easily buy, finance, and resell shares of luxury homes through Pacaso’s intuitive platform.
• Turnkey ownership: Pacaso handles maintenance, scheduling, and furnishing; owners simply enjoy their vacation homes.
• Maximized value: Homes that once sat empty 90% of the year now stay occupied nearly year-round, benefiting owners and local economies.

And the demand for their services and expertise is real. Co-ownership is growing 21% annually in the U.S., and Pacaso homes have appreciated nearly 10% since 2021 – roughly double the growth of the broader luxury market.

Dominating a $1.3 trillion market

Pacaso is leading the charge in the $1.3 trillion U.S. vacation home market, combining real estate innovation with tech-driven efficiency to generate multiple revenue streams. These include transaction service fees on every sale, recurring property management fees, and exclusive financing options tailored to co-owners.

The platform’s global reach is growing quickly, with recent market expansions in Paris and London. In fact, Pacaso’s first Paris property sold out so fast that they purchased a second – on the same street. Now, as they scale, Pacaso’s unique model is poised to dominate the vacation home segment.

Why investors are paying attention

There are many reasons top firms like SoftBank and Maveron have already backed Pacaso, including:

• Proven leadership: Pacaso’s founding team helped grow Zillow to a $16 billion valuation.
• Strong growth metrics: Nearly $1 billion in transactions, over $100 million in gross profits, and a 38% year-over-year increase in adjusted gross profit in H1 2024.
• Surging demand: 40% of Americans want to buy a vacation home in the next year (Coldwell Banker), and co-ownership is growing 21% annually in the United States

And here’s the kicker: Pacaso is now accepting public investment in this co-ownership boom for just $2.70 a share.

Claim your stake in Pacaso today and be part of this market’s next big disruption. Visit invest.pacaso.com to learn more.

This is a paid advertisement for Pacaso’s Regulation A offering. Please read the offering circular at invest.pacaso.com.

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As TikTok attempts to pause a fast-approaching deadline that forces it to separate from its Beijing-based parent company ByteDance or face a ban in the United States, small business owners are starting to prepare for the worst. The Supreme Court listened to arguments on Friday and is expected to rule on the case by the end of next week.

In the meantime, creators are building email lists, joining other social platforms, and starting newsletters.

Lizz Smoak, co-founder of branding and marketing agency, Maiden Media, and a mentor and chairwoman for volunteer business mentor organization SCORE said the ban is about more than the app.

Related: ‘Sent Ripples Through the Marketing World’: What Businesses Can Do Now to Prepare for a Possible TikTok Ban, According to a CEO

“It’s about the businesses and creators that rely on it,” Smoak told Entrepreneur. “I’ve seen how critical platforms like TikTok are for entrepreneurs. They’re more than marketing tools; they’re lifelines for businesses.”

Creators who protested outside the Supreme Court Friday in Washington said the same. Andrea Celeste Olde, a TikTok content creator, told the New York Times that the platform helped her launch her business after being a stay-at-home mom for 10 years.

“TikTok is where I created my community,” she told the publication. “I have made friendships. I have business partners. That’s how we connect.”

Smoak says that TikTok’s algorithm makes it one of the only platforms where small business owners and emerging entrepreneurs can go viral without spending a fortune pushing their content, and a ban would throw “thousands of businesses off track.”

In December, TikTok warned in a court filing that if the ban goes through, creators and small businesses in the U.S. could lose $1.3 billion in revenue and earnings—in one month.

Related: Looming TikTok Ban Has Creators Questioning How Much of Their Business They Really Control

Still, a Statista survey, conducted from April to May 2023 among U.S. TikTok users found that 73% of respondents thought TikTok was addictive and 27% said they experienced negative mental health effects because of the app.

“A ban could be a wake-up call for healthier online habits,” Smoak stated.

The founder and CEO of handwritten notes service Handwrytten, David Wachs, told Entrepreneur last week that brands should strengthen the community they have grown on TikTok by hosting virtual events like webinars, live Q&A sessions, and virtual product launches that encourage real-time interaction.

“The potential ban of TikTok has sent ripples through the marketing world, urging brands to rethink their strategies,” Wachs said. “While it may seem like a setback, this shift opens up a valuable opportunity for brands to enhance direct engagement with their audience.”

Related: Is Kevin O’Leary Buying TikTok? ‘Shark Tank’ Star Teams Up With Frank McCourt for ‘People’s’ Bid

Other experts suggest reaching out to big brands with influencer marketing programs, like Walmart and Amazon, to diversify your content and options.

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Most organizations define their values during pivotal moments — at their founding, during a rebrand or when leadership changes. But too often, those values are relegated to the About Us page of a website, sitting alongside the mission and vision statements, destined to be forgotten.

Even when employees know the stated values, they often feel disconnected from them. That’s because many company values are dopaminergic ideals — concepts that trigger excitement or aspiration but lack grounding in practical application. They aren’t used to align behavior, build trust or guide decision-making — and that’s a missed opportunity.

Values are one of the most powerful tools a company has. They create alignment, empower autonomy and enable agility. Yet, for many organizations, values remain neglected and underutilized.

What does “value” really mean?

The word value comes from the Latin root meaning “to be worth” or “to be strong.” It shares its origin with valiant. Living by your values is an act of courage. It means standing firm in what matters most. For a company, this is the foundation of a loyal, connected, and vibrant culture.

Every team is made up of individuals with unique backgrounds and personal values. Shared values bring people together. They create alignment around a common purpose, removing ambiguity and reducing the need to second-guess intentions. With shared values, trust grows and teams can focus on meaningful actions, even while navigating uncertainty.

Related: 3 Steps to Establish Authentic Core Values

The competitive edge of values

Strong values don’t just shape internal culture — they also set you apart in the marketplace. As Simon Sinek famously said, “People don’t buy what you do; they buy why you do it.” Your values articulate your why. They communicate what your company stands for and how you operate in the world.

This principle is the foundation of my book, Start With Values. Refreshing your company’s values isn’t about branding or appearances. It’s a deep, introspective process. It asks two essential questions: Who are we now? and How do we want to operate in a constantly evolving world?

Co-creation brings values to life

The best values are created collaboratively. Start by asking your team, “What’s most important to you?” Collect their answers. Look for patterns. You might be surprised by what you discover.

In my work with companies, this exercise often uncovers unexpected insights. At one organization, employees ranked wisdom, integrity, and achievement as their top values. Leadership hadn’t anticipated these — they assumed the team’s priorities revolved around service and stability.

We refined these values into actionable principles:

• Integrity became Do the right thing.
• Wisdom became Evolve — a call to learn and grow.
• Achievement became Be bold — a rallying cry for confidence and innovation.

This process matters. When employees feel heard and see their input reflected, they’re far more likely to embrace and live those values. Ownership transforms abstract ideas into shared commitments.

The rule of three

Three is the magic number for company values. Why? Because it’s easy to remember. Think of the three little pigs, the three wise men or the “ABC” simplicity we learned as children. Limiting yourself to three values ensures clarity and focus.

These values should become lenses for decision-making. For instance, a customer service agent handling a complaint might ask:

• Can I be bold in solving this issue?
• Can we evolve our process to prevent similar problems?
• Am I doing the right thing for the customer and the company?

These questions provide clarity and empower employees to act with confidence. Decisions become faster and alignment improves.

Related: Unlock the Secret to Crafting Compelling Core Values With This Step-by-Step Guide

Turning values into action

Values shouldn’t be static words on a page. They should guide how your company operates — how you act, react and make decisions.

Elite teams, like Navy SEALs or championship sports teams, demonstrate this in practice. For them, values aren’t theoretical concepts. They’re embedded in every action and decision. Over time, these values become second nature — not because they’re forgotten, but because they’ve been fully integrated.

In the corporate world, companies with strong values consistently outperform their peers. They foster trust, encourage innovation and navigate challenges with resilience. Teams that know what they stand for move faster, collaborate better and deliver more consistently. Research by Gallup suggests that connection to company culture creates a fourfold increase in engagement and a 62% reduction in burnout.

Why now?

If your values feel outdated or disconnected, now is the time to revisit them. Values should reflect who you are today, not who you were five or 10 years ago. They must be relevant, actionable and aligned with your organization’s goals.

Start by listening to your team. Identify shared personal values. Then, refine those insights into three clear, actionable organizational values. These values should inspire, guide and energize — not overwhelm. When done well, values are more than statements. They’re your identity. They build trust. They drive performance. They create cultures that people want to be part of.

It’s time to rethink your company’s values. The secret to a thriving, connected team might be closer than you realize.

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This week, Macy’s announced which of the 66 stores they were closing this year as part of their “Bold New Chapter” strategy.

The company announced in February 2024 that a total of 150 underproductive stores are set to close over the next three years. Macy’s said it will “continue investing” in 50 “go-forward” Macy’s locations through fiscal 2026.

Related: Macy’s CEO Confirms Employee Made Accounting Errors Worth $151 Million, Though Not for ‘Personal Gain’

“Closing any store is never easy, but as part of our Bold New Chapter strategy, we are closing underproductive Macy’s stores to allow us to focus our resources and prioritize investments in our go-forward stores, where customers are already responding positively to better product offerings and elevated service,” said Tony Spring, chairman and chief executive officer of Macy’s, in a statement.

Stores in Florida, Texas, Michigan, Georgia, California, Colorado, New York, and more are set to close. The list also includes most of the furniture specialty stores and the recently revamped historic location in Downtown Brooklyn.

A full list of all 66 stores can be found here.

As intelligent machines evolve from novelties to necessities, entrepreneurs face a stark choice: Leverage these powerful tools or be eclipsed by them.

In this video, I recommend the top five AI books that every entrepreneur needs to read in 2025. These are not just books about AI — they are also strategic guides to leveraging artificial intelligence for a competitive advantage, with a particular focus on helping your business to thrive in the next phase of AI.

From demystifying complex concepts for beginners to revealing the playbook used by the top 1%, these artificial intelligence books provide the essential knowledge to transform your business. Discover how Phase 3 AI will change your business forever. I’ll also share insights from my own book, “The Wolf is at the Door,” your survival guide for the age of AI, and show you where to access two free chapters.

Download the free “AI Success Kit” (limited time only). And you’ll also get a free chapter from Ben’s brand new book, “The Wolf is at The Door – How to Survive and Thrive in an AI-Driven World.”