Can ‘26 be the time to start a new business? | Finance

With reports showing 2025 had the weakest job growth since 2003, political unrest in the U.S. and abroad, layoffs and inflation, the market is likely confusing to many. So, is 2026 a good or bad time to start a business?

The short answer is this year is as good a time as any to launch a new venture. The long answer is that it depends.

The product or service the business will sell to the marketplace, demand and where the business is located should all be considered before starting a new business, Mark Baran, managing director of the CBIZ national tax office in Washington, D.C., said.

“Look at what’s happening to existing or similar businesses,” he said. “Are you going to add value?”

Some of the most successful businesses got started in what others consider the worst of times, so don’t let the headlines scare you, Kenneth B. Liffman, attorney, president and chairman of the board of McCarthy Lebit Crystal Liffman Co., LPA in Cleveland, said.

“I wouldn’t let it stop me if I had a good idea and I knew it, and I had the right people,” he said.

There are many good reasons to start a business in 2026, among them being favorable tax laws that went into effect last year under the Big Beautiful Bill.

There is less red tape to cut through and lower interest rates are making borrowing more affordable, making overhead lower and demand higher, Baran said.

Technology companies are in a particularly good position due to a law that permanently will enable them to write off research and development, according to Liffman.

The bill also made it more attractive for small, pass-through entities, also known as an LLC, to get off the ground, he said.

Likewise, for those considering launching a manufacturing business, there is a new type of depreciation called Qualified Protection Property, Baran said. The rules have yet to come out, but if you purchase a plant to start a new business, you can depreciate 100% of it, he added.

However, the tax environment is just one tool at the business owner’s disposal, and it should not drive the deal, Liffman added.

“You do a deal because you think you have the right talent,” Liffman said. “You have to be good at what you’re doing, otherwise, it won’t make a difference.”

A proper business plan is essential, Baran said. That should include factors such as the company structure, purchasing insurance and having your vendors in place. Online research is helpful, but it can steer you in the wrong direction or not provide enough information. Talk to your lawyer, accountant and banker as they are part of your toolkit, he said.

“For small businesses, if you’re doing everything you should be doing, you should be fine,” Baran said, adding that it is important to consider where you can grow and scale your business.

Liffman offered another piece of advice to help would-be business owners “rise above the mist.”

“Having self-respect and believing in yourself and in your product” is key, he said. “You have to have others who believe in you.”

Shannon Mortland is a freelance journalist.