Chicago-area small and mid-sized businesses are growing this year. Here’s how.

Bank of America’s latest Business Owner Report confirmed what we see every day from entrepreneurs across the Chicago region: cautious yet determined optimism.

According to the report, nearly three in four business owners expect revenue gains in the next 12 months, and many plan to expand, hire, and secure new financing. Given these strong growth signals, here are four practical steps Chicago-area business owners can take now to position their business for growth in the year ahead.

Invest in the right digital tools

Innovation remains a reliable path for efficiency and growth. Nearly all business owners plan to adopt digital tools over the next five years, with more than half aiming to accept more forms of digital payments and 50% planning to implement AI.

The best investments will be those that help business owners digitize repetitive workflows, such as scheduling, invoicing, customer service, and inventory management, which frees staff time for higher-value contributions. This can be particularly helpful for the more than 60% of companies impacted by labor shortages.

As digital capabilities expand, businesses must also plan to increase cybersecurity measures, strengthening authentication and data protection to preserve trust alongside growth.

Leverage community engagement around local events

Community engagement can help businesses grow and attract new customers. That’s why more than half of business owners have modified their operations around major events such as sports games, concerts, and festivals by introducing targeted promotions, social content, themed campaigns and sponsorships.

Consider the Bank of America Chicago Marathon, which generated nearly $756 million in economic impact in 2025, with attendee spending flowing to hotels, restaurants, retail, and transportation. Likewise, smaller-scale events like street fairs, concerts, and regional festivals can create meaningful ripple effects.

Aligning business activities to local events is a smart play. Approximately half of businesses surveyed reported increased sales, and nearly half saw growth on social media. It’s no surprise, then, that roughly four in five plan to repeat these efforts in the future. Businesses that proactively align staffing and hours of operation with in-person and digital activations are best positioned to benefit from local events — large and small.

Manage cash flow with discipline

Disciplined cash flow management is critical for local business owners, especially as inflation and interest rates remain top concerns. Nearly 90% of entrepreneurs report that inflation is impacting their business, prompting many to raise prices and scrutinize cash flow. Similarly, 75% are facing supply chain pressures, leading to price adjustments and sourcing challenges.

In response, business owners are 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 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 fact, 83% of business owners plan to secure financing within the next 12 months. Financing plans should be informed by factors including expected growth, hiring and retention plans, and ongoing investments. Knowing the options available to you — from business credit cards to personal loans — is the first step.

Succession planning also remains a critical component of long-term planning, yet 40% of business owners have yet to formalize a plan. They can start by identifying successors, documenting governance and key processes, and tracking value drivers like margins and recurring revenue, seeking early guidance from bankers, CPAs, and attorneys.

By and large, business owners this year are focused on steady growth, practical decision making, and a readiness to invest where it matters. More are embracing digital tools and AI to remove friction for customers and streamline operations, engaging strategically with local events, tightening cash flow amid persistent cost and supply pressures, and taking a longer view on capital and succession to protect hard-won value.

• Hamed Hashmy is a market executive for Bank of America. He oversees a team of commercial bankers that provides guidance to privately held companies across the Chicago area, advising on matters ranging from working capital, capital expenditure, and equipment financing to treasury solutions that optimize business controls, cash flow, and liquidity.