4 Ways Leaders Can Harness Confidence and Rise to the Challenge in 2022 To survive and thrive in these challenging times, business leaders need the right mix of confidence and strategy to plot a new path to success.

The proverbial playbook for business leaders has been tested over the last couple of years. Issues related to Covid-19, stresses in the supply chain, and labor shortages, just to name a few, have forced leaders to completely reimagine the ways they do business.

The good news: Business leaders are allowing themselves to feel good about the areas where they can exert control and are letting go of the areas where they can't, according to findings from JPMorgan Chase's 2022 Business Leaders Outlook Survey of more than 2,600 business leaders in various industries across the U.S.

"Despite ongoing disruptions, 70 percent of small business owners are confident about their companies' prospects," says Ben Walter, CEO of Chase Business Banking. "More owners expect to see their revenue, profits, and capital spending increase in 2022. About 40 percent of owners anticipate their credit needs to rise, which is higher than we've seen in the last five years."

Same goes for midsize businesses. Those owners and managers have figured out how to plan for and navigate pandemic-related disruptions and, in many cases, have returned to operating at or above pre-pandemic levels. This gives them a blueprint for navigating future challenges.

"It's essential for business leaders to maintain confidence in their decision-making because it sets the tone for their organization and employees to follow suit in times when there isn't a clear path or solution," says John Simmons, Head of Middle Market Banking and Specialized Industries at JPMorgan Chase Commercial Banking. "Throughout the Covid-19 pandemic, business leaders have demonstrated that they are resilient by continuing to make critical business decisions that have allowed them to survive and even thrive."

Here, Simmons and Walter share four ways small and midsize business owners and leaders can harness confidence and rise to the challenge in the coming year.

1. Adopt a digital mindset.

One thing the public health crisis has made clear: Consumers are increasingly shifting to digital. To survive in these times, business leaders can't always rely on in-person, brick-and-mortar tactics to get the job done. A digital mindset is a must.

"Small businesses understand that Covid-19 has accelerated changes in consumer behavior, and they are increasingly taking action to reach their customers through digital channels," Walter explains.

The shift to online sales and services will likely continue this year. According to the survey, about 19 percent of small businesses expect to move to a nearly 100 percent e-commerce model, up from 12 percent one year ago. In addition, nearly one-quarter (24 percent) of small businesses have implemented more contactless payment options and 22 percent have increased sales on social media platforms.

2. Expect and plan for change.

While embracing change can be daunting, business models that do not evolve with time expose themselves to greater risks. This includes the inability to attract new customers, a loss of revenue, employee turnover, and business inefficiencies.

"It has never been more important to crisply define your short- and long-term business goals, find out what's working and what is not, and move swiftly," Walter advises.

Since the outset of Covid-19, for instance, many medical professionals expanded telehealth services to meet their patients' needs virtually anywhere and anytime. Walter says he expects to see restaurants invest more in curbside pickup and delivery, and retailers to move more products online as companies continue to adapt to changing consumer needs and meet consumers where they are. "Some businesses have fully adopted these changes into their core business model for the foreseeable future," he says.

3. Invest in your employees.

At midsize and small businesses alike, the tight labor market is influencing their current workforces, as 68 percent of midsize businesses are saying their employees are now working more as a result. Simmons says this and other impacts, such as reduced revenue and delayed product launches caused by the tight labor market, make it all the more important for leaders to focus attention on employee well-being and retention this year.

"In the past, midsize companies may have leaned on their culture and smaller size to retain employees; now, they should consider taking more deliberate actions to keep their employees engaged and on board," Simmons says. According to the survey, incentives being offered by midsize companies to attract and retain workers include raising wages (81 percent), providing flexible work locations (45 percent), increasing benefits (40 percent), offering flexible hours (37 percent), adding training opportunities (35 percent) and paying retention bonuses (25 percent).

4. Keep an eye on costs.

Companies are paying more money to attract and retain employees, and sourcing goods has also become more expensive. "In the year ahead, companies should closely monitor their costs to keep expenses in line with revenue," Simmons says. Fortunately, the survey notes most business leaders (81 percent) expect to see an increase in revenues for 2022—which should help offset rising costs.

"I'm inspired every day by the grit and ingenuity of America's business leaders, who have continued to shine throughout the pressures of the past two years," Simmons says. "If businesses continue to focus on their growth plans and remain adaptable, they will find themselves making progress towards their goals."

For more information on JPMorgan Chase's 2022 Business Leaders Outlook, please view the small and midsize business reports.