Setting Your Business Strategy for 2026: New Challenges, More Opportunities

As we start the 2026 year off, I met with a couple that outlined how there is a backdrop of challenges that business owners are facing. As a business owner myself, I could appreciate the hurdles they brought up and shared much of the same frustrations but we were able to talk about some opportunities. Here are some things that have come up in the conversations I had.

The elephant in the room is that for the first time in a while, we’re seeing interest rates move lower, even though it has been at slow pace. Inflation has cooled from its peak. The fears of a recession are a lot less than it was a year ago.

And yet… the overall sentiment seems cautiously optimistic. Just take a look at the Consumer sentiment levels which are as low as during covid, 2008 financial crisis and 1980 stagflation eras.

Consumer Sentiment Index by Yardeni research

Both consumers and business owners remain cautious. Spending decisions take longer. Hiring feels riskier. Capital is still expensive compared to what we got used to in the 2010s.

So the real question for Connecticut business owners isn’t “Is the economy good or bad? ”It’s this:

How do you plan for another year where the business cycle isn’t fully on the upswing—but isn’t falling apart either?

The answer starts with shifting how you think about challenges.

Start by Breaking Down the Challenges

What challenges are you facing? Let's break this year's challenges into parts you can work with:

• Inflation is lower, but costs are still elevated

• Revenue may be inconsistent or “lumpy”

• Hiring and retention are harder than they used to be

• Financing isn’t cheap, but it is available

Once challenges are defined clearly, they stop being paralyzing—and start becoming solvable.

Think About Solutions, Not Just Problems

Focusing only on uncertainty can be defeating. Productive planning starts when you ask:

“What’s within my control right now?”

Pricing, Positioning, and Marketing

If margins are tight, do you need to:

• Raise prices selectively?

• Adjust your product or service mix?

• Refocus on your most profitable customers?

A strong marketing strategy can soften the impact of economic headwinds. In today’s digital world, that means aligning:

• Your website

• Social media

• Email communication

Lean into what makes you different. Are you a long-standing local business? Family-owned? Known for quality or reliability? Those stories matter—especially when buyers are cautious.

Managing Costs with Intention

If expenses are the issue, ask:

• Can technology remove friction or automate parts of your workflow?

• Are leasing or equipment costs still aligned with how you operate today?

• Are there fixed costs that made sense five years ago but don’t anymore?

Cost control doesn’t mean cutting blindly—it means simplifying intelligently.

Employees: The Real Growth Bottleneck

For many Connecticut businesses, the biggest obstacle to growth isn’t demand—it’s attracting and retaining talent.

Today’s employees care about more than salary. Benefits matter. Culture matters. Flexibility matters. Long-term security matters.

Depending on your business structure and size, there may be retirement plans that:

• Improve employee retention

• Create loyalty

• Provide you, the owner, with meaningful tax deductions and long-term savings

The right plan can turn benefits into a competitive advantage—not just an expense.

If you are a solopreneur you may have 1099 contractors working with you that you could see becoming employees down the road. Keep this in mind as it may impact the retirement savings plans available to you.

Do You Need to Raise Capital?

In an inflationary and uncertain environment, capital can be a bridge—if used strategically.

Common sources include:

• SBA or government-backed loans

• Banks and credit unions

• Private lenders or partners

• Equity buy-ins tied to long-term succession planning

  
  

But all of these require the same foundation.

Before seeking capital, ask yourself:

• Are your financial statements clean and credible?

• Are your tax filings done with due diligence?

• Can you show predictable or repeatable income?

If your revenue is commission-based or project-driven, can you demonstrate historical patterns or identifiable cycles? Lenders and investors don’t expect perfection—but they do expect clarity.

Have You Thought Through Your Taxes—Beyond This Year?

Changes in the business environment often create tax planning opportunities, not just tax pain.

business owners that are strong at planning ahead, think in multi-year terms:

• New marketing spend may be deductible

• Equipment purchases may qualify for accelerated depreciation

• Professional fees can often be written off

• Starting a retirement plan may generate tax deductions.

Tax planning isn’t about reacting in April. It’s about designing decisions throughout the year that support both cash flow and long-term wealth.

Do You Have the Right Resources Around You?

You can’t do everything yourself—and trying to usually costs more in the long run.

Start by being honest about your time:

• What truly requires you?

• What could be delegated?

• What should be outsourced entirely?

Then consider:

• Can someone on staff take on leadership or project ownership?

• What functions would benefit from outside expertise?

Marketing teams, CPAs, attorneys, and consultants all solve specific problems—but coordinating them is a job in itself.

That’s where having a financial advisor who specializes in working with business owners can make a difference. The right advisor acts as a quarterback—helping align business decisions with personal financial goals, while bringing in the right professionals at the right time.

The Bottom Line

Growing a successful business is never easy—regardless of the economic cycle.

But business owners who:

• Stay realistic

• Focus on solutions

• Plan across multiple years

• And surround themselves with the right resources are far more likely to come out stronger on the other side.

The economy doesn’t have to be perfect for progress to happen. It just has to be planned for.

About the Author

Marc Lowe, CFP® is a fee-only fiduciary advisor based in Waterford, CT, helping retirees & business owners make smarter financial decisions.

CEO & Founder of In The Money Retirement Planning

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