How business owners are preparing for 2027
Business leaders across the Midwest share optimism, practical concerns through the end of the year.
Leading a business can feel isolating. Learn from what’s on the mind of fellow business owners to hone your own plans. First Financial Bank conducted a survey of 500 business leaders throughout the Midwest to better understand how they view the current landscape.1 Comparing your own outlook to that of other business leaders can help develop your plans for the future.
Fact: There is optimism around growth in 2027, but it is guarded and grounded in execution.
88% of small business leaders expect an increase in revenue by the end of this year.1 At the same time, the operating environment is more complex than ever. Business leaders cite demand softness and inflation pressure as key considerations in planning. It can be prudent to consider these risks and map out the ways your business can respond. Targeting new customer segments or refreshing your product offerings can help combat demand softness. Going into the new year, reassess your cost structure and pricing to prepare for potential increasing inflation pressure.
Fact: Nearly one-third of business leaders see talent and retention as an economic risk to watch.1
The hiring process often puts pressure on day-to-day operations, and open roles can lead to coverage strain and additional turnover. This obstacle can be more substantial for smaller businesses. As the year comes to an end, take a holistic look at your staffing needs. Plan for potential talent-related opportunities and risks like team growth or turnover.
Fact: Expenses are a reality for all businesses, but how they fund different needs will vary.
Most business leaders do not anticipate any change to their credit needs this year, even though 62% of businesses expect an increase in capital spending.1 55% of leaders plan to use credit to smooth cash flow and cover everyday expenses during seasonal swings or tight spots.1 With these funding options in mind, determine how you will approach increased expenses or cash flow challenges in 2027.
Fact: New tech tools are changing the business landscape.
Business leaders need to stay aware of trends and developments while balancing other business priorities. 92% of small business leaders are exploring or implementing AI across their business, with a significant group (44%) still in the early stages of AI adoption.1 Technology integration must be tailored to each individual company, and you may find that the best approach to new technology is waiting to see what becomes standard in your industry. Regardless of your tech outlook for 2027, spend time looking at your current tech tools and what your competitors are using. If it aligns with your business plan, explore new options to streamline operations or simplify the client experience. At the very least, research the costs of different industry tools so that you know what kind of investment will be required if you decide to move forward.
First Financial Bank’s survey of business leaders highlights the complexity of business ownership and the economic landscape across the country. Businesses’ needs continue to be diverse and wide-ranging. Including a trusted banker in your planning process can help you chart a course toward stability and growth.
