As 2025 begins to wind down, many businesses are shifting their focus from short-term adjustments to long-term resilience. Preparing for 2026 requires not only navigating current market challenges but also positioning your business to thrive in the year ahead.
Middle-market companies, with their inherent flexibility, are especially well-positioned to do this. Their ability to act quickly, refine hiring strategies, and adapt to changing customer needs allows them to prepare more effectively than larger, slower-moving competitors.
Here are six strategies small-to-mid-sized businesses can use to strengthen performance in late 2025 — and set themselves up for a strong start to 2026.
1. Better Cost Management
A forward-looking cost strategy is key to sustainable growth. Rather than only cutting expenses, smart businesses are refining spending by eliminating waste (like unused software or inefficient processes). It is important tostill protect essential investments in marketing, customer retention, and technology upgrades.
As you begin planning, take a strategic approach to managing working capital. Professional guidance around financial and tax considerations can uncover opportunities to free up resources and support long-term growth. Our team specializes in financial and tax considerations that can help your business grow.
2. Cash Flow Optimization
Heading into 2026, cash flow remains one of the most important planning levers. Strong cash management means actively monitoring inflows and outflows, tightening receivables, and negotiating favorable supplier terms. For instance, monitoring your cash conversion cycle to assist with creating a form of internal financing.
Many small-to-mid-sized businesses are also evaluating alternative financing options (like asset-based or invoice financing) to preserve liquidity while still investing in growth. Integrating forecasting and modeling into your plan will help you anticipate future needs and stay ahead of potential disruptions.
3. Doubling Down on Revenue Stream Diversification
Diversification isn’t just about surviving a downturn — it’s about creating a foundation for growth. As you map out 2026 growth opportunities, consider ways to expand offerings, reach new customer segments, or enter untapped markets. Look for natural offshoots around core products and services that you already have expertise in providing.
Digital channels, as well as industries that remain resilient during economic shifts (like essential goods and services), can serve as a springboard for long-term success. Building diversified revenue streams now makes your 2026 plan more resilient and adaptable.
We just talked about this topic in an article published earlier this year. Read more about the benefits of diversification for strategic growth.
4. Embracing Digital Transformation
Technology investments today can dramatically shape your competitive edge in 2026. Automating manual processes, enhancing client experiences through digital platforms, and leveraging data for decision-making all drive efficiency and growth potential.
Streamlining internal control processes and leveraging data analytics for better decision-making can contribute to cost savings. Additionally, using the right accounting tools to manage your business can enhance your financial management.
With the right digital and accounting tools in place, your business can better manage performance, reduce costs, and create scalable systems that will serve you well long term.
5. Adopt a Culture of Continuous Improvement
Businesses can not rely solely on one-time fixes in 2026 — they instead need to embrace a culture of steady improvement. This approach focuses on incremental, consistent upgrades across all areas of the business, supported by leadership that is willing to embrace change and eager to learn from failures.
Leadership should champion innovation, support employee-driven problem-solving, and build feedback loops that encourage adaptation. By embedding this mindset into your new year planning process, you set the stage for consistent productivity gains, higher customer satisfaction, and stronger employee engagement.
6. Execute Small Changes, Measure, and Learn
Big-picture strategies matter, but the execution of small, incremental improvements is what drives sustainable progress. Focus on testing and scaling changes gradually, supported by clear KPIs and ongoing measurement to track progress.
Leadership buy-in is critical here: when teams see executives championing improvement, they’re more likely to stay engaged and committed. This approach reduces risk while accelerating innovation — key ingredients for a successful 2026 growth strategy.
Small-to-Mid-Sized Business Growth Strategies with Kreischer Miller
The end of 2025 is the perfect time to look ahead. By prioritizing cost control, cash flow, diversification, digital tools, and a culture of improvement, you can enter 2026 with confidence and scale your business this upcoming year.
Let us help get you there faster. Explore how our advisory services for Small to Mid-Sized Businesses can move the needle and contact us today.