As 2026 kicks off, many SME owners are dealing with tough trading conditions and ongoing economic uncertainty. While the broader picture may feel unsettled, the most resilient businesses are taking action early.
Success will depend on smart financial planning and a focus on long term goals. Here, Rich Olsen, UK Business Advisors, shares how you can navigate the unique challenges the new year will bring.
Keep cash management at the centre of your plans
Cashflow discipline is essential for business stability. Review your debtor list and improve how quickly you collect outstanding payments. Knowing who your slow payers are allows you to reset expectations and shorten payment cycles. This also helps you stay on track with your suppliers’ payment terms and reduces unnecessary pressure.
Improve Working Capital: Invoice Finance and Better Supplier Terms
Financial forward planning will be a major advantage in 2026. Consider tools such as invoice finance to strengthen cashflow and support day to day operations. When you have faster access to working capital, you can pay suppliers promptly and this puts you in a strong position to negotiate better terms.
Long-Term Business Planning: Keep Investing Through Uncertainty
Difficult conditions can cause businesses to cut back on important activities such as staff development, recruitment or marketing. However, the organisations that maintain their investment are often the ones that take market share during downturns. Clarify your long-term business goals and continue to invest in people, systems and capability. When economic stability returns, you’ll be in a strong position to grow faster than your competitors.
Focus on What You Control: Efficiency, Automation and AI
Speculation can be distracting and often pessimistic. Instead of reacting to negative noise, focus on the actions that will protect and grow your business. Improving efficiency should be a priority. Automation and artificial intelligence can streamline processes, strengthen productivity and support sustainable growth.
Review Business Debt: Refinancing Options to Ease Cashflow
Debt costs are lower than they have been for some time. Now is a good time for SMEs to review finance arrangements. Refinancing can reduce pressure on cashflow and provide a more stable platform for the year ahead. There are almost always options available: exploring solutions early will help you secure favourable terms and plan with more confidence.
SME Resilience in 2026: Build a Plan and Get Expert Support
Although conditions are challenging, SMEs can take steps now to build resilience and put your business in a strong position for 2026. UK Business Advisors can help you shape a clear plan and identify the right financial and strategic options for your business.
If you’re concerned about your company’s financial position, speak to a UKBA-accredited advisor today for confidential guidance.