Small Businesses vs. Rising Costs

February 9, 2024

Small business owners are feeling the pinch of inflation and rising costs, with most experiencing costs increases of up to 20%. To help protect more bottom lines, Bank Iowa’s President and CEO Jim Plagge recently participated in an interview with Yahoo! Finance, during which he offered several tips for small business owners:

 

·       Work closely with a local community bank to structure deposit accounts and loans to avoid account fees and minimize borrowing costs. This could include things like consolidating or refinancing existing high-rate, short-term debt or finding an alternative to high-interest-rate credit products.

·       Be attentive to discounts that accompany timely payments.

·       Ask your CPA about potential government subsidies and alternative tax strategies.

Some of the additional expert tips included in the Yahoo Finance piece:

 

1.    Take a regular complete inventory of your business. Make sure your activities are helping to grow your company and prevent rising or unforeseen costs.

2.    Renegotiate some of your most significant costs, including vendor pricing and leases for your business properties.

3.    Maintain a strong company culture. Happy employees stay with your company, saving you the expenses of poor productivity and rehiring.

4.    Embrace remote work for your employees. That will allow you to save on costs, including bills, and possibly help you eliminate your commercial lease.

5.    Foster a strong relationship with your bank. Your financial institution can help you reduce or eliminate fees and save money on banking and other financial services.

 

For more information, read the full article on Yahoo! Finance.