Top 7 Challenges For SMBs and How to Solve Them

It’s said that every challenge you face is just an opportunity in disguise. So, what are your challenges (or opportunities) as a small business owner and how are you handling them?

We wanted to see if we could help. So we asked the experts, dug into our own research from the latest Small and Medium Business Trends Report and tapped into insights from real stories from small businesses like yours, and got some answers.

What we found were some of the most common — and pressing — challenges small and medium businesses (SMBs) face today. This guide brings them to life with practical strategies, real solutions, and smart uses of tools like customer relationship management (CRM). From building loyalty to scaling across channels, here are some powerful insights to help you grow with more clarity and connection.

What we’ll cover:

Challenge 1: Building resilience during economic shifts

Economic cycles are nothing new — every few years, market conditions shift. Sometimes growth accelerates, while other times, spending slows. For small businesses like yours, these changes can affect everything from inventory planning to staffing decisions. Navigating these cycles requires flexibility and foresight, especially when budgets tighten or customer demand fluctuates. Understanding these patterns can help you build a business that adapts, even when the market changes.

Solution: Prioritize operational efficiency and long-term planning

Instead of cutting corners, many growing businesses like yours are taking a more strategic path — simplifying where it matters and planning for stability over time. The goal isn’t just to save money. It’s to reduce complexity, boost focus, plan effective strategies, and create a stronger foundation.

From the latest Small and Medium Business Trends Report, here’s what that shift looks like:

• Teams are retiring tools that create silos and switching to platforms that work together in a collaborative space
• Businesses are using artificial intelligence (AI) to reduce busywork, and understand their customers better
• CRM systems are helping unify data, automating workflows, and giving leaders better insight and control into their business and customers

Challenge 2: Meeting rising customer expectations

Your customers want more than just a great product — they want to feel seen, understood, supported, and remembered. Whether they’re placing an order or scrolling through your latest marketing campaign, they expect every interaction to feel thoughtful and consistent.

Today’s customers don’t just compare you to other small businesses — they compare you to the best experience they’ve had anywhere else. That could mean a one-click checkout or simply not having to repeat themselves when switching from chat to email. Keeping up with that standard is time-consuming, especially when your team is stretched thin.

As a business owner, that means you’re being asked to deliver hyperpersonalized, 24/7 support — with answers ready across every channel, all the time. Meeting these rising expectations is the real challenge.

Solution: Personalize every interaction through a deeply unified CRM 

83% of SMBs believe customer experience is their key differentiator in a competitive market. Satisfy every customer with one tool. When you bring all your customer data into one place, you create the foundation for personalized service that scales. A strong CRM — especially one powered by artificial intelligence (AI) — helps you build loyalty that lasts.

Here’s how growing businesses are closing the gap, according to our research:

• 92% of SMB marketing teams use CRM tools to centralize customer data
• 65% of customers expect personalized, consistent experiences across every touchpoint and that’s where your tools come in
• Businesses are using AI to tailor product recommendations and automate follow-ups, saving time and resources across the business

Challenge 3: Adopting AI without losing the human touch

AI is everywhere — in your inbox, your social feed, your customer data. And while it promises faster workflows and easier decision-making, it also brings real concerns. You might be asking yourself: Will my brand still feel personal? Will my customers know when they’re talking to a human — or a bot? Is my data safe with AI?

That’s the balancing act many growing businesses like yours are navigating right now. You want the speed and scale of AI, but not at the expense of the trust and connection you’ve worked so hard to build. And as your customers become more aware of how businesses use AI, transparency matters more than ever.

Solution: Use trusted AI to support your team — not replace it

The best use of AI is the kind that helps you do what you already do best — only faster and with less stress. Instead of replacing real conversations or thoughtful decisions, AI can help you respond quicker and tailor experiences in a way that still feels human. 

With tools like Agentforce — AI-powered intelligence built into your CRM that helps you run your business — you can enlist AI to assist you in caring for your customers, and your team at the same time. 

Here’s how small businesses are doing it right, according to our latest research:

Challenge 4: Maintaining customer trust and data security

Trust doesn’t come easy — and once it’s lost, it’s almost impossible to get back. In a world where customer data flows across every platform and tool you use, one misstep can shake the confidence your business has worked so hard to earn. Whether it’s unclear data practices or a lack of transparency, customers are paying attention — and they’re not afraid to walk away.

78% of customers say they won’t engage with a brand they don’t trust. And trust today isn’t just about great service or ethical values — it includes how you collect, use, protect, and communicate ‌customer data.

Solution: Invest in secure, transparent data practices

We could talk about trust all day, it’s our number one value here at Salesforce. The most trusted businesses are the ones that make data security a core part of the customer experience. That means being clear about what you collect, why you collect it, and how it benefits the people you serve. It also means choosing the right systems — like a CRM that supports first-party data, minimizes risks, and helps you build relationships based on transparency, not tracking.

Here’s how small businesses are building trust through data according to our data:

• CRM is helping unify and secure customer data across teams and channels
• Ethical AI practices — including visibility and consent — are top priorities for growing brands, showcasing trust as the top priority
• Growing businesses like yours are giving customers more control over their data, building long-term loyalty in the process

Challenge 5: Managing growth with lean teams

Growth is exciting — until it starts to outpace your capacity. When new customers, new opportunities, new markets, and new channels come your way, it can stretch your team in every direction. And when your headcount stays small, the pressure doesn’t just add up — it spills over into missed follow-ups and burnout.

If you’re feeling like your team is doing the work of five with the hours of one, you’re not imagining it. Many small businesses are facing the same challenge: scaling without overextending. It’s not about working harder — it’s about working differently.

Solution: Automate the busywork so your team can focus on what matters

The smartest teams aren’t just hiring — they’re building smarter systems. From sales to service, automation and AI tools are helping small businesses like yours handle repetitive tasks and stay focused on customer relationships instead of admin overload.

According to our latest research, here’s how small businesses are managing growth more effectively:

• Teams are automating lead routing, email follow-ups, scheduling, and data entry saving time and resources monthly
• AI is helping prioritize hot leads, flag urgent issues, and surface insights without manual digging, saving hours every day for teams of all sizes
• CRMs are replacing spreadsheets and sticky notes with real-time visibility for the whole team, allowing more global collaboration across multiple industries

Challenge 6: Standing out in a crowded digital market

There’s no shortage of competition online — and for small businesses, being seen is only half the battle. The real challenge? Grabbing attention and keeping it. Whether you’re running an ecommerce shop, managing a retail store with an online presence, or offering professional services, you’re up against businesses with bigger budgets, more staff, stronger tools, and louder voices.

And with the digital space being more crowded than ever — from social feeds to inboxes — it’s harder to break through the noise, let alone stand out. Even if your product is great and your service is better, it won’t matter if the right people never hear your story.

Solution: Use AI-backed marketing to personalize, scale, and compete

The good news? You don’t need a massive team or ad budget to show up powerfully online. With the right AI marketing tools, small businesses are reaching the right people at the right time — and doing it with the kind of personal touch that big brands often miss.

Here’s what’s working, according to the 3500+ leaders we surveyed:

Challenge 7: Scaling customer engagement across channels

Your customers aren’t just reaching out in one place — they’re everywhere. One might browse your website, message you on social media, follow up by email, and expect a personalized reply via SMS — all within a few hours. That’s the new reality of customer communication. But when your tools don’t talk to each other, and your team is switching between platforms, that experience quickly becomes disconnected.

According to our research, small businesses use an average of at least 10 sales and service channels. That’s a lot of opportunity — and a lot of room for friction if your data systems aren’t connected.

Solution: Create a seamless omni-channel experience

The businesses that are keeping customers engaged and loyal are doing one big thing differently — they’re connecting every touchpoint with an AI-powered communication platform. Instead of switching between systems or re-entering data, you can view customer journeys in one place and tailor outreach with confidence.

Here’s how small businesses are scaling their engagement, without losing quality:

• Consolidating sales, service, and marketing tools into a single AI CRM
• Using automation to handle personalized responses, appointment reminders and real-time notifications
• Turning siloed channels into a connected experience that builds loyalty and trust

Solving the top challenges for small businesses, every day

The road ahead will always have bumps — but now, you’ve got a clearer map. From navigating economic shifts to building trust through smart data practices, you can overcome any challenge with the right strategy and toolkit. For deeper insights on how small and midsize businesses are adapting and thriving, check out the latest Small and Medium Business Trends Report.

The most successful teams aren’t doing it all — they’re doing what works. They’re simplifying their tech stack, unifying data through CRM, automating tasks with trusted AI, and building customer experiences that feel more human, not less. Whether you’re in marketing, sales, or customer service — or wearing all three hats — the right tools and long-term mindset can help you move with more confidence and less stress.

Start your journey with the Starter Suite today. Looking for more customization? Explore Pro Suite. Already a Salesforce customer? Activate Foundations and try out Agentforce today.

AI supported the writers and editors who created this article.