The cost of doing business is rising and it is not a temporary spike that will quietly reverse itself. Across every sector we are seeing sustained pressure from insurance premiums, energy prices, wages, compliance obligations, technology capability, cyber security, rent, interest rates and regulatory requirements. These are not isolated challenges. They are structural shifts in the business environment. Shifts we advocate against but… the question for leaders is no longer whether costs will rise. They have. They will again. The real question is how we respond.
In times like this, the instinct for many businesses is to retreat. Reduce discretionary spending. Delay investment. Pause professional development. Focus only on internal operations. On the surface that seems sensible but is it? The businesses that consistently outperform during volatile cycles tend to take a different approach. They understand that isolation is expensive, and connection is leverage. When margins tighten and uncertainty increases, access to relationships, intelligence and influence becomes more valuable, not less.
Smart leaders do not trim the services where connections can be found. They see networks and connections as strategic infrastructure. In a single room, they can access decision makers, potential clients, suppliers, partners, government representatives and investors through warm introductions rather than cold outreach. One trusted conversation can open a door that offsets months of rising costs. When trading conditions shift, connected businesses hear it first. They gain insight into who is expanding, who is hiring, who is contracting and where new opportunities are emerging. That shared intelligence reduces risk and sharpens decision making. It competitively positions businesses that get out and put in effort. Easy choices make business hard. Hard choices makes business easier.
Professional development is another area where the strongest leaders lean in rather than pull back. As skills shortages intensify and expectations around leadership and capability rise, investment in learning becomes a strategic advantage. Teams that continue to grow in capability during tighter cycles are better positioned when conditions improve. Those that pause development often find themselves behind.
Then there is advocacy. Regulation, infrastructure planning, rates and policy decisions shape the cost base of every business in our region. An individual voice can be overlooked. A collective voice carries weight. Effective advocacy protects and strengthens the long-term operating environment for all.
The rising cost of doing business may be inevitable but absorbing it alone is not. The leaders who will thrive in 2026 and beyond are those who deepen relationships, stay visible, invest in capability and leverage the collective strength of their business community. In that environment, connection is not a luxury. It is strategy. If you don’t know how to access all these riches, Geelong Chamber of Commerce is the best place to start.
Written by Jeremy Crawford, CEO, Geelong Chamber of Commerce
Published in Times News Group papers, 27 February 2026
