SOUTHERN OCEAN COUNTY – What should business owners be doing now to prepare for 2027? From protecting profits and planning for retirement to navigating state regulations and health insurance options, financial experts offered some answers during a gathering of Southern Ocean County business and nonprofit leaders.
The Mainland in Manahawkin was the site of the Southern Ocean County Chamber of Commerce’s Business Forecast Breakfast. The discussions focused on financial decisions and regulatory changes that could affect their operations in the coming year.
Assemblyman Greg Myhre (R-9th) opened the program with an overview of New Jersey’s business climate, raising concerns about the state’s $60.7 billion budget, taxes and regulations. He also discussed the financial consequences of decades of underfunding New Jersey’s public employee pension system.
“For years, they took what’s called pension holidays,” Myhre said, referring to periods when state administrations reduced or skipped contributions. New Jersey has since resumed making full actuarially determined pension payments, but the earlier shortfalls left substantial unfunded liabilities.
Myhre also highlighted regulations regarding New Jersey’s longstanding ABC test for determining whether workers qualify as independent contractors. Businesses must satisfy all three requirements to classify workers as independent contractors rather than employees, regardless of whether they receive 1099 tax forms. The regulations are intended to address worker misclassification, but Myhre warned that businesses relying on independent contractors should review their arrangements to avoid potential penalties.
More Sales Alone Is Not Enough
Sarah Snell, partner and chief operating officer of Holman Frenia Allison, P.C., challenged attendees to look beyond revenue when evaluating the financial health of their organizations.
More business does not necessarily mean greater profitability. Additional sales may require hiring employees, purchasing equipment or spending more on operations, potentially leaving a company with less available cash.
“If you’re not managing your margins and your cash flow, growth can actually create financial pressure,” Snell said.
She presented a hypothetical example of a company that increased annual revenue by $100,000 but generated approximately $32,000 less in gross profit because its margins declined. The example illustrated how an owner focused primarily on sales might overlook deteriorating financial performance.
Snell identified five priorities for businesses and nonprofits entering 2027, namely monitoring financial performance, tax planning, cash flow forecasting, realistic budgeting and preparing for unexpected setbacks.
One of the greatest challenges, she explained, is the difference between revenue recorded on financial statements and money actually available to pay expenses. Customers may take 30, 60 or 90 days to pay invoices, while payroll and other obligations continue.
“You can look profitable on paper, and you can still be struggling to make payroll tomorrow,” she said.
Snell recommended preparing cash flow forecasts covering 13 weeks so businesses can identify potential shortages before they become emergencies. She also suggested establishing contingency plans that identify actions to take if sales fall below expectations.
Tax planning should begin before the end of the year, she added, particularly for businesses considering equipment purchases, retirement contributions or changes to their organizational structure. She cautioned that buying equipment solely to obtain a tax deduction makes little sense unless the purchase also benefits the business.
Retirement And Your Business
Michael Morano, a financial and portfolio adviser with Merrill Lynch Wealth Management, addressed financial decisions extending beyond day-to-day business operations.
For business owners, those decisions may include determining when to retire, whether to sell a company, how to finance a child’s education or how to transfer wealth to future generations. Morano said financial planning should account for multiple goals rather than focus exclusively on investment returns.
He demonstrated how different investment strategies could affect potential retirement income, long-term wealth and the likelihood of meeting financial goals. He also cautioned against making decisions based on short-term market movements.
“Time in the market is so much more important than timing the market,” Morano said.
Longer life expectancies add another consideration. Retirement savings may need to last 30 years or more, making it important to evaluate spending needs and investment risks well before leaving the workforce.
Health Insurance Enrollment Approaches
Health insurance decisions will also require attention in the coming weeks as New Jersey’s individual coverage open enrollment period began November 1.
Megan Petrosino, an account manager with Horizon Blue Cross Blue Shield of New Jersey, warned against automatically renewing an existing policy without reviewing changes to its coverage and costs.
Premiums, deductibles, copayments and out-of-pocket maximums can change from year to year. Petrosino explained that consumers should understand how those expenses work together, particularly when comparing plans with different monthly premiums. She emphasized that a lower premium does not necessarily mean lower overall healthcare expenses.
She also discussed Individual Coverage Health Reimbursement Arrangements, or ICHRAs, which allow eligible employers to contribute toward employees’ individual health insurance premiums instead of providing a traditional group policy. Employees can then select coverage based on their medical needs and financial circumstances.
New Jersey’s individual health insurance marketplace, Get Covered New Jersey, will accept open enrollment applications from November 1 through January 31. Consumers generally must enroll during that period unless they qualify for a special enrollment opportunity.
Planning For The Coming Year
Lori Pepenella, CEO of the Southern Ocean County Chamber of Commerce, introduced the speakers and outlined upcoming programs, including a November 4 nonprofit forum at Stockton University’s Manahawkin campus and a December 2 holiday open house.
The breakfast also gave attendees an opportunity to speak individually with presenters and exchange information with other business and nonprofit representatives.
Although the speakers addressed different aspects of financial planning, a common theme emerged throughout the morning. Decisions made before the end of 2026 could help businesses and individuals better prepare for the opportunities and challenges of the coming year.
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