Last year, we spent time talking to business owners across the North to get a sense of how they’re feeling about 2026. The picture that emerged is interesting, cautious, considered, and full of opportunity for those who prepare well.
Here’s the highlights…
Over half expect 2026 to be more stressful
Conversations highlighted recurring themes such as rising employment costs due to National Insurance contribution increases, ongoing tax and regulatory changes, cashflow sensitivity, and market uncertainty.
This is not pessimism, it is realism. Businesses that anticipate pressure early are often the ones best placed to build resilience and navigate it successfully. Understanding the challenges ahead allows owners to take proactive steps rather than reacting under pressure.
Growth is planned, but not everywhere
Many businesses are actively planning for growth and diversification in 2026, but it is not universal. For some, uncertainty comes down to a lack of financial clarity or strategic direction.
When business owners have accurate numbers, visibility on cashflow, and clear insight into margins, decisions about growth and diversification become far more confident. Growth that is calculated rather than reactive is usually the most sustainable and rewarding.
Exit planning remains a blind spot
Exit planning remains a significant area where many businesses could benefit from earlier preparation. A large proportion of business owners have not yet formalised their exit strategy, which can have implications for profit structure, business valuation, tax efficiency, leadership development, and succession readiness.
For guidance on starting this process, our Managing Director, Phil recently sat down with Yorkshire Business Insider to discuss the six questions every business owner should asks themselves when it comes to exit planning. It is never too early to think about the future, and planning now strengthens outcomes for later.
Can we track who clicks on the link? Presume not?
Confidence in the North remains strong
Despite anticipated pressures, confidence in the North remains high. Many business owners describe the region as vibrant and full of opportunity, with resilience built into the way they operate.
This optimism is encouraging, particularly when paired with proactive financial planning. Businesses that combine regional opportunity with clear visibility and preparation are more likely to thrive in the year ahead.
Preparing for 2026
The overall picture is not wholly negative, just cautious and considered. Business owners are expecting pressure, selectively pursuing growth, and recognising opportunities, but preparation is the key differentiator.
Businesses that will thrive in 2026 are not necessarily the boldest, they are the ones who take steps to be ready. That means:
- Having accurate financial visibility
- Forecasting cashflow
- Undertaking strategic tax planning
- Building long-term value
- Thinking early about exit planning
If you would like to explore how prepared your business is for the year ahead, our team at Northern Accountants can help assess your position and identify opportunities to make 2026 a success. Contact us for more information.
For a deeper dive, check out our ultimate guide to preparing your business for growth.
