Northern Trust Releases Third Business Owner Benchmark

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[{"type":"text","content":"\n2025 promises to be a consequential year for business owners who face decisions about growth, family and legacy\n\n\n CHICAGO--(BUSINESS WIRE)--\nBusiness owners are forging ahead with big plans in 2025, according to The Northern Trust Institute’s third Business Owner Benchmark. The report, based on a survey of Northern Trust’s business owner clients, reveals that despite mixed feelings about the economy, many respondents are poised to undertake large scale changes within their business next year.\n\n\nAccording to Eric Czepyha, Northern Trust’s Director of Business Services, the economy, market conditions and industry trends will always be important factors, but based on years of working with thousands of business owners, the future of these businesses is often largely determined by family dynamics and the overlapping roles of owners, their families and management.\n\n\n“With this survey, we delve into the ambitions of startup founders to multigenerational family business owners amid a rapidly shifting landscape,” Czepyha said. “We discovered that many respondents are thinking big – for instance, evaluating new areas to grow their business or considering ways to monetize their business, all the while attempting to navigate how to best prepare their children for the wealth they will eventually inherit.”\n\n\nCautious about the state of the economy\n\n\nThe survey was conducted in third quarter of 2024 when the Federal Reserve initiated its rate cutting cycle and expectations increased for a “soft landing.” Yet only 8% of respondents said they are optimistic about next year’s economic outlook. The leading cause of respondents’ malaise was the current political environment (54%), followed by potential changes to tax policy (42%) and the impact of ongoing global conflicts (34%).\n\n\nCommitted to undertaking major changes\n\n\nWhile it remains to be seen whether the new administration will help assuage these concerns, business owners will be proactive next year, depending on where they are in their lives. Respondents younger than 65 exhibited a growth mindset with plans to expand into a new line of business (30%) or acquire a new business (28%) next year. On the other hand, respondents older than 65 were more interested in selling all or part of their business (33%).\n\n\nCultivating the next generation\n\n\nAlthough business own...

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