More than half of small business owners are anticipating revenue growth and 22% plan to hire staff in 2018, according to a survey from TD Bank. Last year, 46% of business owners expected to increase revenue and just 9% had plans to hire.

To help fuel this growth, credit needs also significantly increased nationwide. Forty-six percent of the 578 business owners surveyed said that they either have or will apply for credit in the next 12 months, compared with 21% in 2017. Federal Reserve interest rate hikes may be affecting business owner’s credit plans, however, with 27% stating rate changes are spurring them to seek credit sooner or to refinance current debt.

“It is encouraging that a large portion of small business owners plan to seek credit this year and expand,” said Jay DesMarteau, head of Commercial Specialty Segments at TD Bank. “Banks can work with business owners on solutions that make sense for their needs and provide insights into how business and personal credit and income can impact their financial future.”

Tax reform, while capturing headlines, may not be a major boon to small businesses, with nearly half of respondents stating that the Tax Cuts and Jobs Act provisions will not benefit their businesses. Among those who do plan changes in business investments due to tax reform:

• 15% expect higher earnings
• 14% will use extra capital to pay down debt
• 13% plan to integrate new technology
• 13% will purchase new equipment

Although optimism is high among SBOs, they do expect some obstacles over the next year. When asked to name their top two challenges for 2018, 27% selected the health of the national economy, 20% cited tax reform, 14% chose inflation and 13% indicated rising interest rates.

Another challenge is what to do at the end of their entrepreneurial life. Fifty-two percent of SBOs reported that they do not have a retirement or succession plan for their business (climbing from 47% in 2015), a number that rises to 63% for business owners 55-years-old and older.

“Business owners shouldn’t count on today’s growth to fund them in retirement or allow the daily challenges of running a company stand in the way of long-term, strategic planning,” DesMarteau said. “Working with experts for all financial decisions – from start-up phase to retirement – can help put a small business on the best path to success.”