Your business might be feeling the pinch this year as prices of goods keep going up, but consumer spending doesn’t keep up. Before investing your savings, talk to My Bank about financing options.
Inflation and Rising Costs Continue to Impact Small Businesses
There’s no denying that prices are high and fewer loans are available for small businesses. The Consumer Price Index found that inflation on gas, food, and services is still higher than in the past. The April Small Business Economic Trends report shows that businesses will be raising their prices just a bit again to make up for higher costs on their end despite the Commerce Department showing marginal improvement in spending.
Real Business Experiences
“You have to absorb a lot,” said Celeste Hilling of Skin Authority. She’s started training employees online and trying to cut her travel expenses, which she says have risen more than 30% in 12 months for her business.
Exploring Financing Solutions
You could always turn to friends and relatives for short-term help or investigate federal loan programs. You may also want to try and find a solution that will work for your business, such as using business loans or seeking account analysis. With the Energy Information Administration forecasting gas prices to stay just upwards of $4 per gallon this summer, monitoring your cash flow and business banking will be important.
Beware of Investment Traps
Be sure to avoid investment traps, though. Angel investors and venture capitalists may not be willing to help a fledgling business, but be careful once you bring one on board because some may only have their best interests in mind. According to Martin Zwillings of Startup Professionals, be on the lookout for those without knowledge of your industry or business in general and overly bossy or controlling investors. Besides taking you to court or the cleaners, some brokers may pose as investors to get your money. Always be sure you know your investors, and if you have questions, don’t second guess yourself.
Keeping Customers and Businesses Happy
Suppose you’re like Lorne Campbell of Washington D.C.’s Occasionally Cakes or Boston’s Mexican restaurant Boloco. In that case, you don’t want your customers to pay too much more to cover your raw goods expenses. Talk with a My Bank financial advisor today about what you can do to keep your company and customers happy.