8 ways small-business owners can prep for the new year

As we head into the new year, here are eight ways you can position your Philly-based business for success.

The people who best understand the challenges you face as a business owner are the ones who are also running small businesses in the area. Meeting them will give you the opportunity to share your problems with others who can help solve them, or at least give you a shoulder to cry on.

Some of my clients enjoy groups like Vistage and the Entrepreneurs’ Organization. Others get involved in local business organizations like Philly Business Connect, the Union League, or any number of other groups listing their events on Meetup.com. LGBTQ+ business owners can consider the LGBTQ+ Chamber of Commerce and other groups. Black business owners can choose from a number of local groups.

If you’re looking for foreign customers, have a meeting with someone from the World Trade Center of Greater Philadelphia. They help their members connect to overseas customers (and suppliers), make introductions, and create new opportunities. If you want to sell more to the government — which spends more than $7 trillion per year! — reach out to a local chapter of APEX Accelerators. They’ll connect you to government projects particular for your industry and guide you through the process of getting approved so that you can respond to bids.

There were big changes in the 2025 federal tax and spending bill that can benefit your business. These include significant new deductions for capital expenditures (particularly if you’re a manufacturer), more incentives to offer your employees paid time off, the ability to go back to 2022 and deduct research and development costs, and additional options for investing in other small businesses. And, because “pass-through” rules and corporate rates have been made permanent, maybe now is the time to reconsider your entire business structure.

“Maybe [pass-throughs] such as S corporations or partnerships are perfect for you and minimizes your ultimate tax liability,” says Rich Petillo, a partner at Centri Business Consulting in Philadelphia. “But perhaps converting to a C corporation is more attractive to potential future investors.”

Before things get really busy for your accountant, meet and make a plan for leveraging these benefits.

Your employees have a lot of complicated financial choices to make. How can they make sure they’re taking advantage of all the tax incentives that are available to help them with their dependents? What health insurance plan is right for them? How much should they be saving for retirement? When should they buy life insurance? Which are the best investments for the short and long term? What’s the difference between “after-tax” and “before-tax” savings plans?

It’s important to make sure your employees are making the best financial decisions possible. This year ask your CPA firm, financial adviser, and benefits consultants for help. They can provide advice to your staff as an added employee benefit. It may cost a little extra, but it’s good for everyone in the long term.

Health Savings Accounts have been exploding in popularity and there’s no mystery why: having one for your employees allows them to put away $4,400 per year ($8,750 for families) pretax (it lowers their taxable income) and can then be withdrawn, without penalty, as long as the funds are used for unreimbursed medical expenses. That includes periodic health evaluations, such as tests and diagnostic procedures ordered in connection with routine examinations, routine prenatal and well-child care services, child and adult immunizations, and even certain weight-loss programs. Unused amounts are rolled over to the next year and continue to grow with investment choices you can offer.

“The longer the funds stay in the account and grow, the bigger the tax benefit,” Meg McGinn, founder of Osprey Health, a health insurance brokerage firm based in Berwyn said. “It’s one of the only accounts out on the market right now that offer these benefits.”

U.S. Immigration and Customs Enforcement ”is likely looking at companies right now that they think and/or know are hiring undocumented immigrants,” Lindsay Eury, an attorney at the Philadelphia-area immigration law firm Solow, Hartnett & Galvan, told me earlier this year. “We do expect to see an increase in on-site inspections and audits for other employers.”

Make sure you have updated I-9 Employment Eligibility Verification forms for each of your workers. Also check with E-Verify to make sure they’re legal to work.

AI assistants like ChatGPT, Copilot, Gemini, Claude, and Grok — though far from perfect — have become more reliable and accurate and 2026 is the year where you should be leaning into their offerings. Encourage your employees to do the same.

You could make a rule that no contract, quote, bid, purchase order, estimate, or other outside communication leaves your company without first uploading to your AI assistant for review. Or require all new policies, internal memos, and agreements be first created by your AI assistant and then reviewed by your experts. Use your assistant for research, analysis, and advice. AI can now play a very important role in your business if you accept that it’s no more than another smart adviser.

Running a small business is very demanding, stressful, and can put pressure on your family relationships. In 2026, regularly commit to doing something for yourself. Join a birdwatching group. Ride your bike in the middle of the day. Go to a gym every morning. Coach or get involved in your child’s after-school activity. Volunteer. Take an art class.

Do something that’s completely unrelated to your business. You’ll find that it takes your mind off your daily problems and clears your head for better thinking. Your customers, employees, and family will notice the difference.