Every so often in business, something comes along that changes the rules so completely that the old skills, the old assumptions and the old playbook become almost worthless overnight.

Joel Barker spent much of his career studying these moments. His film The Business of Paradigms should be mandatory viewing for anyone running a small business in the UK.

Barker poses a deceptively simple question:

“What is currently impossible in your business today—and if it were possible, it would fundamentally change the way you do business?”

I like this question because it forces you to challenge assumptions you didn’t even realise you were making. It invites you to step outside the “normal” you’ve built around your business. And it’s exactly the mindset small business owners need today—because we’re living through one of the biggest paradigm shifts in decades.

Let’s take a step back.

What a Paradigm Shift Actually Means

A paradigm is simply the set of rules and beliefs that tell you how the world works. Every industry has one. So does every market. And so does every business owner.

You get used to these rules. You get good at them. You learn how to win.

Then the paradigm shifts.

A new technology, customer expectation, business model or behavioural change sweeps in—and suddenly everything that made sense last year no longer helps you.

That’s what Barker meant when he said “when the paradigm shifts, everyone goes back to zero.” The skills that made you successful may no longer matter. The habits that built your business may now hold you back. Even the definition of “value” can change.

The Swiss watch industry discovered this the hard way. They owned the global market, dominated the craft, and had zero reason to think the world would move on from mechanical watches. Then quartz arrived. Within a few years, the giants were humbled. Newcomers thrived because they weren’t locked into the old assumptions.

Those who “won” the last game often struggle most in the new one.

Another classic example is Kodak.They actually invented the first digital camera in 1975. One of their own engineers built it. Kodak had the future in their hands. But leadership rejected it because it didn’t fit the existing paradigm—the world of film, chemicals and processing. They feared it would cannibalise their most profitable business line. So they buried it.

Someone else made it viable.

Someone else championed the new model.

And Kodak went from market leader to bankruptcy while the world shifted around them.

That’s what happens when you cling to the old rules while the new rules are forming.

Sound familiar?

Why This Matters for UK Small Businesses Right Now

Your business will not be immune to the next shift. In many sectors, it’s already here.

The question isn’t whether the rules are changing. They are.

The question is whether you’re paying attention.

Small businesses have one big advantage: fewer legacy systems, fewer committees, fewer sacred cows. You can move faster than your larger competitors—if you’re willing to challenge how you operate.

A practical question to explore:

“What is it that your business will be doing differently in five years’ time—and how could you make that change happen now?”

This isn’t about predicting the future with perfect accuracy. It’s about staying curious, spotting early signals, and refusing to assume that tomorrow will look like today.

Which brings us to the biggest paradigm shift of them all right now: AI.

AI: The New Paradigm That Resets Everyone to Zero

Generative and agentic AI are not incremental tools. They are not simply “efficiency boosters.” They are a new foundation for how businesses operate.

If Barker were alive today, I’m certain he’d be pointing to AI as a classic paradigm-shifting moment. Why? Because the rules of business are being rewritten faster than organisations can keep up.

Let’s be direct:

Past experience gives you no advantage in the AI era.
The early movers have the advantage.
And everyone else is starting again from zero.

Generative AI creates content, insights, prototypes and marketing assets in seconds—work that used to take hours or money that many small firms simply couldn’t spare.

Agentic AI goes further. These systems don’t just automate tasks—they take action. They make decisions. They respond to customer behaviour. They change how you plan, how you sell, and how you operate.

The productivity impact isn’t incremental. It’s transformational.

I’ve seen small businesses save 25% of admin time almost overnight. I’ve seen one-person operations deliver the customer experience of a multi-person team. And I’ve seen businesses completely redesign their service model because AI made the “old way” irrelevant.

This is what a paradigm shift looks like: everything changes—quietly at first, then all at once.

How AI Is Already Shaping Small Business Models

Here’s what I’m seeing across UK clients:

1. Marketing turned into a daily habit
High-quality images, ads, posts and scripts generated instantly. No agencies. No delays.

2. Customer service transformed
24/7 AI assistants handling FAQs, bookings, troubleshooting and follow-ups. Even microbusinesses now look “big”.

3. Operations streamlined
Scheduling, inventory, reporting and admin run automatically. Humans move to higher-value work.

4. Faster innovation
New product ideas, new service lines, new designs—tested in hours, not weeks.

5. Better decisions
AI analyses customer behaviour, pricing patterns and competitor moves that most small firms never had the resources to examine.

This is the democratisation of capability. Anyone can adopt these tools. Which means your traditional advantages—experience, reputation, history—matter a little less than they used to.

That may feel uncomfortable. But it’s also a huge opportunity.

So What Should You Do Next?

Let me offer a respectful nudge here. Instead of asking “How does AI fit into my business?” Try asking: “What could AI make possible that I’ve always assumed was impossible?”

Then work backwards.

Start small. Experiment. Challenge your assumptions. Get your team involved. And ask the Barker question regularly:

“If this thing became possible, how would it fundamentally change the way we operate?”

Because when the paradigm shifts, the winners aren’t the strongest or the most experienced. They’re the ones who notice the shift, step forward early, and build the skills for the new game while everyone else is still defending the old one.

Are you ready to begin again?

I’m curious—what’s the “impossible” thing in your business right now? And what would change if it suddenly became possible?