Bay Area Business Leaders Stay Optimistic: What CFOs Can Learn from the Middle Market’s Confidence in 2025

In a business climate defined by rising interest rates, ongoing inflation, and labor market instability, one thing stands out: confidence. According to KeyBank’s 2025 Middle Market Business Sentiment Survey, 72 percent of middle market companies remain optimistic about the national economy—a number that might surprise some, given the ongoing economic and financial headwinds.

For CEOs and business owners in the San Francisco Bay Area, this optimism reflects a broader trend we’ve been watching closely: successful companies aren’t standing still. Instead, they’re finding smarter ways to operate, invest, and plan ahead. The most resilient are those working with experienced advisors—like fractional CFOs—to navigate complexity with clarity.

What Bay Area Business Owners Can Learn from the Survey

KeyBank’s report surveyed companies with $10M–$2B in annual revenue. The findings offer valuable insights for growing businesses here in the Bay Area, particularly those preparing for long-term growth while remaining fiscally disciplined.

Some key takeaways:

✅ 71 percent plan to expand in 2025 – Middle market businesses are investing in new technologies, expanding to new markets, and doubling down on strategic growth initiatives.

✅ 69 percent say their business is in better shape now than it was 12 months ago – Companies are adapting to economic pressure rather than retreating from it.

✅ Top priorities include cost management, cash flow visibility, and technology investment – Exactly the areas where a fractional CFO can make the biggest impact.

Why a Fractional CFO Is More Valuable Than Ever

If you’re a Bay Area CEO or business owner, you know that growth often comes with growing pains—especially in a volatile economy. That’s where a fractional CFO brings immediate value.

Whether your company is approaching $10M in revenue or growing rapidly beyond that, an outsourced CFO can help you:

• Build a forward-looking financial strategy

• Model cash flow scenarios and manage liquidity

• Refine your pricing strategy and cost controls

• Make better capital allocation decisions

• Evaluate financing or M&A opportunities with data-backed insight

Middle market leaders in the KeyBank survey cited these areas as mission-critical—and they align perfectly with what we do for clients across San Francisco, Silicon Valley, and the East Bay. Middle-market companies typically lack access to superior quality CFOs who are able to provide crucial strategic and financial insights to successfully navigate uncertain environments.

Tech-Savvy, Growth-Minded: The Bay Area’s Competitive Edge

One thing that sets Bay Area businesses apart is a willingness to invest in innovation and agility. The survey found that 55 percent of respondents are increasing their tech budgets—even in uncertain times.

The message? Growth-oriented companies aren’t waiting for the economy to stabilize. They’re building future-ready financial operations now.

For local companies, this means asking: Do we have the financial infrastructure we need to grow efficiently? Are we forecasting accurately? Are we leveraging the right data to make smarter decisions?

If the answer to any of those questions is “not quite,” it might be time to bring in fractional CFO support.

How We Help Bay Area Companies Thrive

We work with companies across Oakland, San Jose, San Francisco, and beyond to:

• Build cash flow models and cost-control systems

• Align business plans with financial realities

• Offer part-time CFO leadership without the full-time cost

• Provide clear, actionable insight—not just numbers

With a fractional CFO on your side, you don’t just react to the market—you anticipate and adapt.

Final Thoughts: Optimism Is a Strategy—But So Is Preparation

The KeyBank survey shows that middle market companies are not just surviving—they’re planning ahead, investing strategically, and managing risk thoughtfully. If you’re a Bay Area CEO, this is the time to position your business for smart, scalable growth.

And you don’t have to do it alone.

Contact us today to learn how our fractional CFO services can help your company optimize cash flow, reduce risk, and seize opportunity—no matter what the economy brings next.