5 ways small businesses can stay resilient when costs rise

Practical steps to manage inflation and higher interest rates

Running a small business is exciting, but it comes with challenges. This is especially true when prices rise and borrowing becomes more expensive.

Higher interest rates can affect everything from credit cards to loans,  and inflation makes supplies and services cost more. While these pressures are real, there are practical steps you can take to stay steady and protect your business.

1. Connect with a small-business banker

You don’t have to navigate rising costs on your own. A small-business banker can walk you through your options, from managing debt to exploring new financing, and help you find the best solutions for your situation.

2. Know your financial health

Take a close look at your balance sheet, income statement, and cash flow. Understanding where you stand today helps you make smart decisions for tomorrow.

Beyond the basics, consider how quickly customers are paying invoices, how often you’re relying on credit lines to cover expenses, and whether sales are keeping up with rising costs. These patterns can highlight areas to adjust before they become bigger problems.

3. Review your loans and credit

If you have loans with variable interest rates, consider moving them to a fixed-rate product so payments stay predictable. Also, keep an eye on credit card balances, since rates often rise quickly.

4. Create a plan for high-interest debt

Paying down expensive debt — especially credit cards  — can save you money and reduce stress. Even small steps toward lowering your balance can make a big difference over time.

5. Pressure-test your business

Ask “what if” questions: What if rent goes up? What if supply costs rise again? Walking through scenarios gives you a clearer view of how your business could respond, and where you may need a backup plan.

For example, if supplier costs jumped by 10 percent, would you raise prices, cut costs elsewhere, or seek alternative suppliers? Running these scenarios ahead of time helps you act faster when challenges arise.

Even setting aside a small amount regularly can give your business breathing room when costs spike. A little financial buffer can mean the difference between reacting under pressure and making confident, steady decisions.

Start saving in one of M&T Bank’s Business Savings Accounts . We have options for sole proprietorships, partnerships, DBAs and non-profits, depending on your account balance. 

Inflation and rising interest rates can feel overwhelming, but you don’t have to face them alone. Connecting with a small-business banker gives you a partner who understands the challenges and can guide you toward solutions. With the right plan in place, you can keep your business resilient and ready for what’s ahead.

Resilience doesn’t come from avoiding challenges, but from preparing for them. Visit our Business Education Center  to find even more articles on topics that can help your small business thrive.