WEBVTT 00:00:00.367 --> 00:00:01.868 Hello, I'm Jonathan Flack, 00:00:01.868 --> 00:00:04.404 PwC's Global Private Leader. 00:00:04.404 --> 00:00:07.207 This is our sixth annual article on what we think 00:00:07.207 --> 00:00:10.210 private business owners should focus on this year. 00:00:10.677 --> 00:00:12.245 2025 was another 00:00:12.245 --> 00:00:15.515 challenging year and 2026 doesn't look any easier. 00:00:16.082 --> 00:00:19.085 We continue to face geopolitical instability, 00:00:19.352 --> 00:00:20.987 economic uncertainty, 00:00:20.987 --> 00:00:24.424 rapid AI disruption and ongoing climate change. 00:00:24.824 --> 00:00:28.561 With all this in mind, here's our top five recommendations on 00:00:28.561 --> 00:00:32.332 where we think private business owners should focus in 2026. 00:00:33.133 --> 00:00:34.501 The first is balancing 00:00:34.501 --> 00:00:37.504 short-term agility with long-term strategy. 00:00:37.771 --> 00:00:40.040 It is essential to balance quick decision 00:00:40.040 --> 00:00:43.743 making while keeping your long- term goal and vision in mind. 00:00:44.477 --> 00:00:46.746 Private businesses have an advantage here. 00:00:46.746 --> 00:00:49.049 They're nimble and can pivot quickly. 00:00:49.049 --> 00:00:51.151 But speed alone isn't enough. 00:00:51.151 --> 00:00:54.054 You have to stay focused on your vision and long- 00:00:54.054 --> 00:00:57.057 term goals, even while making quick decisions. 00:00:57.791 --> 00:01:01.161 Secondly, AI continues to be a major focus, 00:01:01.661 --> 00:01:05.532 so we advise making strategic, cost-effective investments. 00:01:06.199 --> 00:01:10.970 Our latest CEO survey shows that 60% of CEOs see gen 00:01:10.970 --> 00:01:13.973 AI as a growth opportunity, but 00:01:14.074 --> 00:01:16.843 they've yet to see the returns. 00:01:16.843 --> 00:01:20.113 We recommend prioritizing AI initiatives with the fastest 00:01:20.113 --> 00:01:23.283 returns, evaluating results before deciding 00:01:23.283 --> 00:01:24.484 where to invest next. 00:01:25.552 --> 00:01:28.321 Thirdly, and this is the topic I've spoken on a lot 00:01:28.321 --> 00:01:31.324 to family business owners about, and that's succession planning. 00:01:31.858 --> 00:01:32.792 The difference 00:01:32.792 --> 00:01:35.829 is that it's critical for all private business owners, 00:01:35.862 --> 00:01:37.630 not just family businesses, 00:01:37.630 --> 00:01:40.200 to think about their succession plan. 00:01:40.200 --> 00:01:43.169 For many reasons, succession plans often fail. 00:01:43.203 --> 00:01:45.038 But the crucial factor is to begin 00:01:45.038 --> 00:01:48.041 developing a plan immediately rather than postponing. 00:01:48.575 --> 00:01:52.445 May 2026 the year that you develop your succession plan. 00:01:53.513 --> 00:01:55.982 The fourth item is to embed sustainability 00:01:55.982 --> 00:01:58.084 in your business operations. 00:01:58.084 --> 00:02:00.353 Sustainability should not be an afterthought 00:02:00.353 --> 00:02:02.655 or just a regulatory exercise. 00:02:02.655 --> 00:02:03.389 It needs to be 00:02:03.389 --> 00:02:06.726 part of your regular operations, business as usual. 00:02:07.193 --> 00:02:08.761 The good news often 00:02:08.761 --> 00:02:12.565 the biggest impacts come from simple, low-cost initiatives 00:02:12.565 --> 00:02:16.169 that reduce waste, save energy or improve processes. 00:02:16.803 --> 00:02:19.739 Making sustainability part of how you run your business 00:02:19.739 --> 00:02:22.709 every day has become just good business sense. 00:02:22.976 --> 00:02:27.480 And finally, building resilient operations. To succeed in 00:02:27.480 --> 00:02:31.117 2026, you need strong, reliable supply chains, 00:02:31.317 --> 00:02:33.186 the right leadership in place, 00:02:33.186 --> 00:02:35.588 solid financial controls and confidence 00:02:35.588 --> 00:02:38.591 in both your short and long-term plans. 00:02:38.758 --> 00:02:41.261 2026 is a time of change. 00:02:41.261 --> 00:02:44.297 And with that comes opportunity for private businesses.