10 Steps for Small Business Success in 2026

Running a small business has never been for the faint-hearted, but the past couple of years have tested even the most resilient owners. NerdWallet UK’s latest survey of 500 business owners paints a rather sobering picture: 71% of UK businesses have considered closing down in the past year.

We know all too well about rising costs, energy bills, and shrinking margins—these pressures are indeed real. But surprisingly, 34% of business owners said family or health issues were the main reason they nearly threw in the towel. Dwindling customer demand followed closely at 31%.

Every business has felt the strain in these challenging years, but there are practical steps you can take to strengthen your foundations, protect your mental bandwidth, and give your business a fighting chance in 2026. Here are 10 key areas worth focusing on to keep your business buoyant. We’ve made them simple, actionable, and achievable even when time and resources are tight.

Keep on top of the books (even when it's stressful)

Nothing drains your energy faster than financial uncertainty. If your bank balance keeps dipping lower than you’d like, that’s a sign to get proactive rather than merely hopeful.

Work closely with your accountant or bookkeeper—think of them less as number-crunchers and more as strategic partners. Ask them to help you:

Review your cash flow patterns
Identify new revenue opportunities
Highlight unnecessary spending
Prioritise debts and understand your liabilities.

One particularly useful exercise is creating a 12-month cash flow projection. It doesn’t take long, and the benefits significantly outweigh the time and effort. This should map out:

Expected monthly sales
Incoming payments
Regular outgoings such as rent, wages and stock
Loan repayments or other debt obligations

If any of the numbers make you wince, don’t ignore them. Facing the hard truths now can prevent far worse scenarios later—like insolvency or unexpected personal liability. In other words, the future you will be grateful. If you’re self-employed or a freelancer, you can – and should – do this, too, as it will allow you to predict when quieter periods might occur, and help you plan for the inevitable fluctuations that come with the territory.

Reassess your market fit

Many entrepreneurs launch businesses fuelled by passion—and that’s brilliant. But passion can sometimes cloud whether the market truly wants what you’re offering.

If sales are slow or customers don't behave the way you predicted, it might be time to step back and revisit your market assumptions. Ask questions like:

Who really needs what I’m selling?
Are there groups I haven’t tapped into yet?
How are customer needs shifting in 2026?
Can I reposition or adapt my offer to meet demand?

A change in direction doesn’t mean failure. It means you’re adaptable—and adaptability is one of the biggest strengths a small business can have.

Solve team problems by understanding skills better

Whether in the form of conflict or burnout, team issues can quietly sabotage growth. And in many cases, problems come from unclear roles or misaligned skills.

A 2024 Achievers Workforce Institute survey found that 50% of HR leaders struggle to identify high-priority skills within their teams, and 60% can’t easily recognise transferable skills that could solve pressing business needs.

If you run a small team, try:

Mapping out every team member’s skills—including the hidden ones
Being clear about expectations and responsibilities
Offering training or development where possible
Considering whether the structure still suits the business.

You might be surprised by the talents already sitting right under your nose.

Build your marketing without a big spend

Marketing isn’t something to get around to—it’s how people discover, remember and choose you. In challenging times, marketing is often the first function to be cut back - but the savvy business owner maintains their marketing efforts. You don't need a big budget to market your business well.

Here are a few cost-effective places to start:

Social media: Pick one or two platforms and manage them well. Choose the platform where your audience is, whether that's TikTok, Instagram, Facebook or Pinterest. Focus on creating quality posts that are engaging or provide value (over and above quantity).
Google Business Profile: One of the key places people find a local business is through the local businesses that pop up in search results. What lies behind this is a strong Google Business Profile.
SEO: A clear site structure and natural keyword use go a long way.
Blog content: Helps customers and boosts visibility.
Backlinks: Partner with other relevant businesses, get featured, or write guest content.
Email marketing: Still one of the highest ROI channels around.

And make sure your website works well on mobile. If it doesn’t, you’re turning away customers without realising.

Treat customer feedback as your roadmap

Nobody likes negative reviews, but they are valuable. They reveal what isn’t working before it becomes a larger problem. Furthermore, how you respond directly influences customer trust. BrightLocal research shows that 41% of people are more inclined to use a business that responds to all of its reviews compared to one that ignores them.

A few good habits that you can adopt immediately:

Reply to reviews promptly and politely
Thank customers for their honesty
Fix recurring issues
Celebrate the positive feedback (that matters too!)

Your reputation is one of your strongest assets—it pays to protect it.

customer leaving a review on their mobile

Prepare now for Making Tax Digital in 2o26

The move to Making Tax Digital (MTD) is getting closer. From April 2026, self-employed people and landlords earning over £50,000 must:

Keep digital financial records
Submit quarterly tax updates using approved accounting software

Those earning £30k–£50k join the scheme in April 2027.

If you’re not already using digital accounting software, now is the time to get set up. Benefits include:

Fewer mistakes
Faster invoicing
Automated expense tracking
Easier tax preparation
Clearer visibility of your cash flow

HMRC has a helpful guide on how to choose the right software for you. They also provide a list of all approved software platforms. Many digital business bank accounts now include MTD-ready tools.

Use AI to lighten the load

If you're in the camp that feels AI is the enemy, it's time to start shifting your thinking. When used well, itt can be an incredibly valuable tool for time-poor small business owners. If you often feel like you’re wearing 20 different hats, AI can give you a breather. Think of it as an assistant that never sleeps.

Useful tools include:

Mailchimp / Klaviyo for automated email marketing
Canva for quick, professional graphics
ChatGPT for idea generation, content drafting, research
Zapier for automation between your apps
Notion or ClickUp for project and task management

These tools save hours each week, which you can reinvest in the areas only you can handle. Read our article about how to use AI responsibly.

Create a plan for life's unexpected curveballs

Most owners don’t have time to think about risk frameworks—and let’s face it, it does sound a little dull. But basic risk planning doesn’t need to be time-consuming. Thinking through various scenarios will prepare you for any problems that arise, and put you one step ahead.

Map out scenarios and potential solutions for questions such as:

What happens if my biggest supplier goes under?
What if I’m ill and unable to work for a month?
Which customers represent too much of my income?
Do I have backups for essential tools and systems?

Creating a short, practical contingency plan can protect your business—and your peace of mind—when life surprises you.

Improve your conversion rates, not just your traffic

If people are visiting your website but not buying, enquiring, or booking, the issue isn’t your audience—it’s your conversion rate. It’s likely there’s a problem with your web page, either in its speed or functionality, confusing or poorly written information, visual appearance, or lack of engaging content that delivers the right message.

The average global ecommerce conversion rate sits at 2.5%–3%. If yours is lower, look at:

Whether your product descriptions answer customer questions
How easy the checkout or enquiry process is
Whether your pricing feels competitive
Page loading speeds
Friction points (pop-ups, confusing layouts, missing delivery info, etc.)

Your analytics, especially in tools such as Shopify, can show you where shoppers drop off your website. Fixing even one or two issues can make an immediate difference.

Look after yourself as much as you look after the business

With over a third of business owners citing family or health pressures as their biggest challenge, the message is loud and clear: a business can only be healthy if its owner is, too.

Adopt some small yet powerful habits, such as:

Setting boundaries around work hours
Taking breaks without feeling guilty
Delegating when possible
Connecting with fellow business owners
Seeking advice early when things feel overwhelming

No business is worth burning out over. Take good care of yourself, and your business will feel the benefit.

2026 will bring its own challenges, but also genuine opportunities for businesses willing to adapt, simplify, and plan ahead. You don’t need to overhaul your entire operation—just focus on strengthening the foundations.

Small, steady improvements build momentum. And momentum is often the difference between simply surviving and truly succeeding.

Are you a business owner in Devon or Somerset? Would you like some free advice on any of the areas covered in this article, or on any other business challenges you’re facing? We’re here to help. Take a look at our current business support programmes here to see what’s available right now and to check your eligibility.

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