Your business might be feeling the pinch this year as prices on goods keep going up but consumer spending doesn't keep up. Before you put in all your savings, talk to My Bank about your financing options.
There's no denying right now that prices are high and fewer loans are available for small business. The Consumer Price Index found that currently inflation on gas, food and services is still higher than in the past. The Small Business Economic Trends report for April show accordingly 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.
"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 percent in 12 months for her business.
You could always turn to friends and relatives for short-term help, or you could investigate federal loan programs. You may also want to try and find a solution that will work for your business using business loans or seeking account analysis. With the Energy Information Administration forecasting gas prices to stay just upwards of $4 dollars per gallon this summer, monitoring your cash flow and business banking will be important.
Be sure to avoid investment traps, though. Angel investors and venture capitalists may not be willing to help a fledgeling business, but be careful once you bring one on board, because some of them may only have their own 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, as well as overly bossy or controlling investors. Besides taking you to court or to the cleaners, some brokers may pose as investors just so they can get your money. Always be sure you know your investors, and if you have questions don't second guess yourself.
If you're like Lorne Campbell of Washington D.C.'s Occasionally Cakes or Boston's Mexican restaurant Boloco, you don't want to make your customers 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 your customers happy.