3 Tips for Fueling Small Business Growth in the Second Half of the Year

Bank of America Institute’s Small Business Checkpoint reported that small business profitability in February improved despite cost pressures. It rose 1.2% year-over-year to the strongest reading since March 2025, demonstrating small businesses’ resilience amid lingering inflationary pressures.

Hiring, on the other hand, remains a sticking point. In March, 32% of small business owners surveyed by the National Federation of Independent Business reported job openings they could not fill. Unable to efficiently grow their workforce, many owners are leveraging technology — including artificial intelligence — to do more with less.

Now, with the second quarter in full swing, there’s no better time for entrepreneurs to pause, assess and recalibrate before the summer months.

Here are three tips they can follow to set their businesses up for a strong second half of the year.

1. Freshen up financials

Despite the profitability rebound in the first quarter, economic uncertainty lingers, and prices continue to climb. According to a March report from Small Business Majority, 64% of business owners reported their expenses had risen over the prior three months. Luckily, with tax season behind them, owners now have a clear picture of their 2025 financial performance — a natural starting point for revisiting budgets, cash flow and spending habits.

Owners should take note of recurring costs or underperforming investments that are eroding margins. For example, imagine a small restaurant discovers its food supplier’s prices increased 2.5% between 2025 and 2026. Until now, the restaurant has absorbed the cost increase, but that approach has its limits. The owner should attempt to renegotiate terms or shop around for competing quotes to reduce one of the business’s largest recurring expenses.

Owners should also evaluate their current revenue streams and consider introducing new products, services, delivery mechanisms or promotions. For example, perhaps a mid-year review reveals that a local fitness studio’s attendance dips every summer as regulars travel. Rather than white-knuckling the seasonal slowdown, the owner could introduce a digital membership that helps generate income regardless of who is physically present.

2. Tighten operations

A mid-year check-in is also an opportunity to assess operational readiness. First, owners should take time to reflect on the first half of the year. What went well? Where were the bottlenecks? The answers to these questions are some of the most valuable inputs a business owner can have, and acting on them now leaves ample time to adjust before Q3.

Next, owners should scrutinize their current workflows and technology platforms to identify redundancies and opportunities for automation. For example, in the startup phase, a retailer may have taken a piecemeal approach to tech adoption, implementing one platform for inventory, another for vendor invoices and a third for online orders. But now, the owner is paying for three separate platforms that do not sync, creating information silos that necessitate time-consuming manual data entry.

A mid-year operational review may prompt the owner to switch to a single integrated platform, resulting in fewer errors, less time spent by staff and a more seamless customer experience. This kind of investment is already gaining traction. According to Bank of America Institute’s March Small Business Checkpoint, small business spending on tech services (including AI) surged more than 14% year-over-year in February, with small retailers leading and manufacturers following close behind.

Finally, staffing, inventory and supply chain readiness also require attention. With hiring challenges and tariffs creating hurdles, owners should take a proactive approach: planning workforce needs in advance, diversifying supplier relationships and stress-testing inventory levels against various tariff scenarios.

3. Maximize the summer season

Whether summer brings a surge or a slowdown, opportunities are plentiful. For small businesses that experience spikes in activity, summer offers a major window for revenue generation. The FIFA World Cup 2026, for instance, will bring an influx of tourists, benefiting small businesses in hospitality, transportation and retail in particular. One study by FIFA and the World Trade Organization projected the tournament would contribute $17 billion to the U.S. economy and create up to 185,000 jobs.

While World Cup opportunities are specific to certain locations, the summer sprint provides opportunities for all small businesses to engage customers at community events, such as festivals and seasonal gatherings. Deploying timely promotions and collaborating with complementary organizations are cost-effective ways to expand reach and drive traffic.

If summer is a slow period, entrepreneurs can use the coming months to lay the groundwork for a strong fourth quarter, investing in areas that are harder to prioritize during their busy season, such as staff training and technology upgrades.

In either case, capturing customer data and feedback throughout the summer sets the stage for future marketing and product decisions. Consistent customer touchpoints during this period cultivate loyalty that carries real value into Q4 and beyond.

The second half of the year promises a dynamic, opportunity-filled landscape, despite persistent challenges. By strategically assessing operations and implementing key insights, small business owners can leverage the momentum of these adaptations, ensuring they are truly positioned for growth through the rest of the year.