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We’re lower than two weeks away from an election that may determine who takes the White House and fills vacant Senate seats, governor’s mansions and countless local offices. Whether you understand it or not, the way you vote can determine the success or failure of your small business.
While it could be tempting to decide on candidates whose ideology and political views mirror your personal, when it involves a small or medium-sized business (SMB), your vote should not be driven solely by emotion. Instead, it should be a strategic decision that may impact the health of your business, including its money flow, the health and well-being of your employees, your community and even the economy as a whole.
But how can this be done when the richest source of data about all candidates – the mainstream media – publishes inflammatory headlines designed to create division and confuse voters? While this goes against the traditional way most of us vote, I encourage you to collect information and focus on policies that best support small and medium-sized businesses.
Whether you own a coffee shop, a clothing boutique, or a startup that you simply run from the comfort of your property, in addition to essential issues that may turn nice conversations into heated debates, it is essential to know how tax policy, regulations , healthcare and trade tariffs can make or break your business.
Having worked as a strategic advisor to each small and medium-sized businesses and Fortune 100 corporations, I have seen first-hand how understanding candidate platforms and voting on issues rarely discussed during campaigns and interviews have a more direct impact on the success of their organizations.
Most business owners – small and large – share the same concerns: managing money flow, staying abreast of regulatory changes, and benchmarking against competitors, all with an eye toward expansion.
We cannot avoid the hysteria in much of the mainstream media (especially during a controversial election), but keep in mind that most of it is just noise. The real issues that matter to your business are financial stability, access to resources and the ability to adapt in a dynamic business environment – even in times of crisis.
If you have been considering hiring a consultant, it is simple to confuse the work I do with that of a business coach. While business coaches focus on personal development and team dynamics, a strategic advisor’s job is to assist set long-term goals, achieve missions, and show business owners and CEOs the right way to lead with empathy.
Apart from the hot button issues
“The only certainties in this world are death and taxes” – Benjamin Franklin
Few statements more accurately reflect life in a capitalist society. While we cannot avoid them, the structure of tax policy (corporate tax rates, deductions and/or incentives) can directly impact how much money you’ll have to reinvest in your business.
For example, each presidential candidates are discussing tax policies that may support large corporations in alternative ways. However, one should not infer from their rhetoric that their campaign guarantees suggest an impact on smaller corporations.
What is your candidate’s position on recruitment tax credits, business development and deductions? Whether you own a mom and pop store or are the CEO of a Fortune 500 multinational corporation, the goal is the same: keep more of what you earn.
Here are some belongings you should consider as you head to the polls on November 5.
Statute
Statute they are there for a reason: protecting consumers and the environment, ensuring workplace safety, promoting equality and more. Setting the rules is not as easy because it seems.
Overregulation of an industry can hinder innovation, making it difficult for a company to face out from its competitors. In turn, insufficient regulation may favor larger corporations with more resources than bootstrap enterprises and start-ups. Deregulation is just a can of worms. After all, it advantages all businesses in one way: it reduces bureaucracy and oversight, but it may reduce environmental and consumer protection. So there’s a lot to contemplate when it involves where the candidates stand on the laws.
For example, in highly regulated industries similar to manufacturing, healthcare, food services and others, you would like policies that ensure a level playing field and protect customers, but do not overwhelm small and medium-sized businesses with administrative bureaucracy. Talk about a balancing act.
Access to capital
Whether you are just starting a business, trying to expand, or simply replacing outdated equipment, access to capital could be a lifesaver for a small business. In addition to lines of credit at the bank, many small businesses turn to Small Business Administration (SBA).
For example, in 2022, the SBA lent $44 billion to 60,000 U.S.-based small businesses. If you have been considering applying for a small business loan, do you know where your applicant stands on supporting SBA-backed loans?
Health care costs
Healthcare is a significant money outlay for many business owners. To stay competitive in recruiting, no matter company size, you should offer employees medical health insurance AND their families.
Health care costs, while viewed as a essential profit, can cripple a small business. You should consider a candidate who offers a practical approach to lowering health care costs without compromising the quality of care you are capable of provide to your employees.
As premiums and prescription drug costs proceed to rise, offering such essential advantages could be a major concern for small businesses. Therefore, knowing where the candidates stand on health care reform is crucial.
For example, candidates who support providing tax breaks for health care corporations may also help small and medium-sized businesses reduce these costs. One candidate believes in reforming the Affordable Care Act (ACA), while one other supports policies like Medicare expansion. Which one can be right for you and your organization?
Labor law and minimum wage
Among other job-related issues, each candidate approaches paid leave requirements in another way. A candidate who advocates for balanced labor laws—ones that protect employees while taking into account the realities of small business operations—can be sure that your employees’ rights are protected while keeping you profitable.
While advocating for a higher minimum wage is noble, for a small business owner who relies on lower-wage employees to fill certain positions, such an increase could mean the difference between success and failure.
An alternative is a moderate increase in the minimum wage, which may very well be complemented by incentives for corporations that create latest jobs or offer training programs. Assessing these policies through the lens of the company’s long-term goals is essential.
Trade and tariff policy
Trade policy is inherently complex, but that is no reason to bury your head in the sand. Knowing your candidate’s position on international trade can help you higher predict how his or her policies will impact your supply chain and, ultimately, your ability to remain in the black.
Restrictions and changing international agreements can impact your operating costs and control your competitiveness in the global marketplace.
Some candidates may support tariffs or trade restrictions to guard domestic industries. That makes sense. While this may increasingly profit some sectors, it may increase the cost of imported materials in many industries.
Free trade agreements could be a solution because they assist reduce barriers to international trade, making it more profitable for small and medium-sized businesses to source materials or export abroad. But will the advantages be mutual for the other countries involved and, furthermore, how essential is it to you?
Why your vote matters
It’s easy to be drawn to the headlines, and even easier to be swayed by a candidate’s views on issues all of us consider essential. However, as a small business owner, your vote is not just about personal preference. The idea is to decide on a candidate whose principles will enable your organization to succeed and thrive – especially in these uncertain economic times.