Rising costs are not the cause of small business failures

I have recently seen an attempt by various small business owners and representatives of certain industries to blame “rising costs” as the reason for small business failures.

And the inevitable call for government-that is the State, the taxpayer, you and me-to do something and provide money or other reliefs for small business in certain sectors as a consequence.

With all due respect to Adrian Cummins of the Restaurant federation and other costs have always risen.

Rising costs are why we have the Consumer Price Index as a measure of inflation. This has been the way since the beginning of the first tranche of small business enterprises.

If your business is so finely balanced between profitability and loss that rising costs tip you over the edge there is a fundamental weakness in your business.

Because as sure as day follows night costs rise. So do prices and fee income.

If your business cannot live with the reality of rising costs it is built on quicksand. And you should not expect the taxpayer to bail you out.

Change your business model. Or your business. That is what true entrepreneurs do.