For many businesses in Ohio and across the country, the cost of doing business is going up. Prices for materials, supplies, rent, and even electricity are all rising. When operational costs go up, it can be harder for small businesses to make a profit.
But there’s good news: by using smart financial planning, local businesses can stay strong—even when prices increase. Financial planning helps business owners make smart choices about how to save, spend, and invest their money.
Let’s explore some ways businesses can handle rising costs and how your bank can be a great partner in this process.
Make a Clear Budget
If costs are rising, it’s more important than ever to have a clear budget. A good budget helps business owners spot waste, set priorities, and avoid spending too much.
How banks help: Many banks offer business checking accounts with tools to track spending and set spending limits. Some even include budgeting apps that connect to your account and help you monitor where your money goes.
Review and Cut Unnecessary Costs
Once a business has a budget, the next step is to review it and look for areas to save. This could mean:
- Canceling unused software subscriptions
- Buying supplies in bulk to save money
- Finding new vendors with lower prices
- Switching to energy-efficient lighting to cut utility bills
Even small changes can add up. By trimming unnecessary costs, businesses can make more room in the budget for important needs.
Build Up Emergency Savings
Sometimes costs go up suddenly, like when a piece of equipment breaks, or a supplier raises prices overnight. That’s why businesses need emergency savings. Having savings can help a business keep going without taking on too much debt.
How banks help: A business savings account is a great place to keep emergency money safe. Look for an account that earns interest so your money can grow while you save.
Improve Cash Flow
Even if a business is making a profit, poor cash flow can make it hard to pay bills on time.
Ways to improve cash flow include:
- Sending invoices quickly so customers pay sooner
- Offering early payment discounts to speed up cash coming in
- Spacing out expenses instead of paying everything at once
How banks help: Tools like business lines of credit give you access to money when cash is tight. Merchant services is a tool that can help businesses accept payments faster—such as mobile card readers or online payment systems.
Consider Raising Prices Carefully
Sometimes, rising costs make it necessary to raise prices. This can be a tough decision because businesses worry about losing customers. But if prices don’t go up while costs are rising, a business might start to lose money. Should your business opt to raise prices, be honest with your customers. Many people understand that prices are going up everywhere. Raise prices slowly, rather than all at once. And add value where you can, such as bundling services or offering loyalty programs.
Rising costs are a challenge, but they don’t have to stop local businesses from succeeding. With smart financial planning—and the right help from a trusted bank—businesses can stay strong, grow smarter, and prepare for the future.
If you’re a business owner, take the time to review your budget, build your savings, and give us a call. We can advise you about the tools and services First Citizens National Bank offers that can help. The better your plan, the easier it will be to handle whatever comes your way.
