By Guest commentary Friday, January 2nd, 2026

By Jason Bietz

The latest Bank of America Business Owner Report confirms what we see every day from entrepreneurs across our communities: cautious yet determined optimism. Nearly three in four business owners expect revenue gains in the next 12 months, and many plan to expand (59%), hire (43%) and secure financing (83%) in the new year. 

Here are four practical steps business owners can take now to position their business for growth and success in 2026.

INVEST IN THE RIGHT DIGITAL TOOLS

Innovation remains a reliable source of efficiency and growth. Nearly all (91%) business owners plan to adopt digital tools over the next five years, with 52% aiming to accept more forms of digital payments and 50% planning to implement AI. 

Many companies have already made progress: 77% integrated AI over the past five years, using it for marketing (50%), content production (38%), customer service (37%) and inventory management (28%). 

Building on that momentum, owners are modernizing payments to reduce friction at checkout and accelerate cash conversion, adding options such as Zelle, Venmo and Apple Pay to meet customer preferences. Others are testing focused AI use cases such as automating routine customer inquiries and drafting product descriptions. 

New tools can also help business owners digitize repetitive workflows, such as scheduling, invoicing, and inventory alerts, freeing staff time for higher-value contributions. This can be particularly helpful for companies impacted by labor shortages (61%). As digital capabilities expand, businesses are also planning to increase cybersecurity measures (30%), strengthening authentication and data protection to preserve trust alongside growth.

LEVERAGE LOCAL EVENTS

More than half of business owners (58%) are realizing the benefits of community engagement by modifying their marketing and sales around major events such as sports games, concerts and festivals by introducing targeted promotions, social content, themed campaigns and sponsorships. 

The approach has paid off: approximately half reported increased sales (51%), and nearly half saw growth on social media (47%). Roughly four in five plan to repeat these efforts in the future. 

The wider halo effect from live events is substantial. Events like the Santa Barbara International Film Festival, wine industry events, Ventura County Fairs, and Old Spanish Days Fiesta can create meaningful ripple effects. 

Businesses can set measurable goals for event days, aligning staffing and hours in advance and pairing in-person activations with digital calls to action to extend reach. 

MANAGE CASH FLOW WITH DISCIPLINE

Disciplined cash flow management is critical for business owners, especially heading into 2026, when inflation (70%) and interest rates (58%) are top concerns. 

Most entrepreneurs (88%) report inflation impacting their businesses, prompting many to raise prices (64%) and scrutinize cash flow and spending plans (39%). Concurrently, 75% are facing supply chain pressures, leading to price adjustments (52%) and sourcing challenges (32%).

In response, business owners are proactively adjusting their financial strategies. This includes reevaluating cash flow projections, optimizing spending and exploring local sourcing options to build more resilient supply chains. 

Beyond these operational adjustments, a disciplined focus on liquidity is key. Owners should also engage with their bankers to review existing loan structures, ensuring they align with current cash flow profiles and the interest rate environment.

PLAN FOR FINANCING AND SUCCESSION 

Demand for capital continues to underpin long-term operational health. In 2025, Bank of America saw a double-digit surge in demand for capital from our Central Coast business clients of all sizes, currently with $633 million in credit extended locally.

For business owners surveyed, 83% indicated that they intend to obtain financing within the next 12 months from such things as business credit cards (53%) alongside personal savings (41%) and traditional bank loans (32%).

Financing plans are informed by factors including expected growth, hiring and retaining staff and ongoing investments in digital tools.

Succession planning also remains a critical component of long-term planning, yet 40% of business owners have yet to prepare one. 

They can begin by identifying potential successors, outlining governance and core processes and tracking value drivers, such as margins and recurring revenue. Advisory teams, including bankers, CPAs and attorneys, can help, especially when engaged early in the process.

TURNING OPTIMISM INTO ACTION 

Trends from the latest report signal that business owners are entering 2026 focused on steady growth, practical decision making, and a readiness to invest where it matters. Central Coast businesses of all sizes are well poised to have a strong and steady start to the new business year ahead.

• Jason Bietz is a senior vice president, Central Coast Banking, at Bank of America.