AI propels 2026 growth plans for small firms in ANZ

Small businesses in Australia and New Zealand are preparing for 2026 with a tighter focus on growth quality, customer service and productivity, as owners adopt artificial intelligence tools and reassess how they run their operations.

Owners are entering the new year against a backdrop of staffing constraints, shifting marketing channels and wider use of AI in day-to-day work. Many are revising their plans with an emphasis on clearer financial targets, more structured service standards and streamlined internal systems.

Elise Balsillie, Head of Thryv Australia and New Zealand, said the end of the year marks a reset point for many operators. "As the year draws to a close, Australian and New Zealand small business owners are reviewing their marketing plans and the tools they need to succeed in 2026," said Balsillie.

Balsillie said owners now assess technology differently than they did even a year ago. "Small business owners have become very savvy and AI is now a critical part of how many businesses operate. At the same time, staffing remains a barrier to growth, which is why tools that support productivity are becoming increasingly important."

Growth, service, productivity

Thryv works with small firms across both countries and reports three recurring themes in current planning: growth, service and productivity.

"Growth remains a major focus, but business owners are approaching it more carefully," said Balsillie. "They are looking at how to optimise revenue projections for 2026, while ensuring growth is cost-effective and sustainable."

Customer service is also central to owners' plans. Many are placing more weight on reviews and repeat business in a cautious economic environment. "Small business owners know that meeting client expectations, delivering great experiences and earning strong reviews can have a direct impact on performance in the year ahead," said Balsillie.

Productivity sits alongside these goals as a separate priority. Owners are spending longer hours on administration and management, and many are reassessing which tools they keep and which they cut.

"Business owners are investing more and more time into their businesses and are actively looking for ways to remove clutter, cut through noise and work more efficiently," said Balsillie.

AI in daily operations

Rapid developments in AI and digital tools over the past year are changing how smaller firms see their competitive position. Many owners now use AI for marketing content, customer communication and response handling.

"I think 2026 will be an exciting year for small businesses," said Balsillie. "Smaller businesses now can compete more effectively with larger corporate and franchise businesses."

She said interest in new software and online platforms has continued to rise. "Small business owners are becoming increasingly tech savvy and are open to tools that support their growth," said Balsillie. "They can respond to reviews with ease and create high-quality marketing materials with very little effort, often using just a few prompts."

Optimism despite uncertainty

Economic conditions remain uncertain in both markets, with ongoing pressures around costs and wages. Many operators still expect stronger trading in the coming year and remain willing to invest in their skills and systems.

"Most of the small business owners we work with are optimistic about 2026," said Balsillie. "They are focused on growing their businesses, maximising current market conditions and continuing to invest in their business and themselves."

Owners' 2026 resolutions

Individual business owners are setting out detailed resolutions for the year ahead. Their plans point to a mix of regional expansion, process discipline and higher use of social media.

For New Zealand-based Craft Homes, which operates in Raglan and the wider Waikato region, 2026 will centre on measured growth and a sharper internal focus. "Craft Homes aims to enter the new year with a focus on sustainable growth within the Raglan and Waikato region, while strengthening what makes the business special," said co-founder Catriona Tisley.

The company wants to grow design work while keeping an emphasis on building performance and staff development. "Our goals include expanding the design and build side of the company and offering clients designs that focus on building performance and indoor air quality. As we grow, we remain committed to supporting and developing our team, ensuring they feel valued, motivated and equipped with the skills to build high-performance homes," said Tisley.

In Victoria, Australia, Precision Epoxy Flooring is planning the next phase after its first year of operation. Founder John "Woody" Wood said he entered the market with a staged plan in mind. "After extensive research, I launched Precision Epoxy Flooring in April 2025 with a clear growth plan," said Wood. "We now have one truck and two vans servicing Warrnambool and Geelong and it is an exciting time for the business with real opportunity to keep building the business to another level."

Wood now aims to refine the company structure while exploring expansion through a franchise-style approach. "My resolution is growing a hybrid franchise model while keeping the business tightly dialled in," said Wood. "The focus now is building the systems and structure that allow us to scale, while growing our reputation and presenting the business in a more personal way. Next year is about growing with purpose and setting the business up for the long term, with Instagram playing a pivotal role."

Year-end checklist

As the Christmas period slows trading for many sectors, advisors are urging owners to review their operations and clarify next steps before business ramps up again.

"Take time to assess your business during the Christmas slowdown," said Balsillie. "Look at what really worked in 2025 and be honest about where things did not go according to plan."

She said owners should start with their largest problems rather than minor inefficiencies. "As a business owner, there are always issues that keep you up at night," said Balsillie. "Start there and focus on solving your biggest problems first to set your business up with clarity and confidence for the year ahead."