Voice of Business Blog

Guest post from Greater Rochester Chamber member Bank of America

As entrepreneurs and small businesses here in Rochester prepare for Q3 and Q4, many are navigating uncertainty. These small businesses – from new ventures to established family-run enterprises – are essential to Rochester’s success. According to a 2025 U.S. Small Business Administration report, Rochester is home to more than 89,000 small businesses (under 500 employees), accounting for 98.9% of all businesses in the metropolitan area and employing 46.4% of the total workforce. Our region’s small businesses provide important goods and services for residents and create crucial jobs, fueling our local economy.

Owning and operating businesses at any stage of growth presents unique challenges, especially as the cost of doing business rises. The U.S. Bureau of Labor Statistics’ April 20026 Consumer Price Index for the Northeast indicated that food prices increased 3.9% in the past year and energy prices rose 21.8% over the same period.  As business owners look to the second half of 2026, it’s important to assess current finances and strategies to manage consumer needs, fluctuating costs, and the unexpected.

Here are a few areas business owners should consider when evaluating their businesses and planning for the future:

Maintain profitability: Recent data from Bank of America Institute suggests small business balance sheets look stable, and profitability growth among these companies was positive in the first quarter. Overall, small business profitability growth rose 0.3% year-over-year in the first quarter of this year, above Q4 2025. To sustain that progress, owners should assess their borrowing needs, explore financing options and manage debt strategically — while building flexibility into their supply chains and staying informed on policy changes that could affect their industry.

Invest strategically in digital tools: Small business spending on tech services, including AI, surged more than 14% YoY in February. Owners who leverage digital investments wisely will have an easier path to growth, whether by accepting more forms of digital payment, creating personalized customer experiences or automating routine tasks like scheduling, invoicing and inventory tracking.

Hire carefully, retain aggressively: To meaningfully attract and retain employees, owners should examine their full employee package. They should consider what to offer beyond salary, such as financial wellness coaching, professional development opportunities or health care savings programs.

Protect what you've built — plan your exit: Succession planning is one of the most important steps an owner can take to protect their business's value and their own financial future, yet it's often overlooked until it's urgent. Small business owners without a plan should start by defining their personal and business goals, then consult trusted advisors on exit strategies. Those with an existing plan should confirm it reflects recent decisions — new partners, leadership changes or shifts in the marketplace.

As the number one small business lender in the U.S., serving 3.4 million small businesses, Bank of America works with entrepreneurs across all stages of growth. In 2025, Bank of America provided more than $31 million in loans to small businesses in Rochester.

To learn more, visit Bank of America’s Center for Business Empowerment or contact Alyssa Moore, Business Banking Relationship Manager, Bank of America Rochester (Alyssa.L.Moore@BofA.com; 585-680-0012).