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We are less than two weeks from the election that will decide who will occupy the White House and fill vacant Senate seats, governors’ mansions and countless local offices. Whether you realize it or not, how you vote can influence the success or failure of your small business.
Tempting as it may be to pick candidates whose ideology and political leanings mirror your own, as a small or medium-sized business (SMB), your vote shouldn’t be driven by emotion alone. Instead, it should be a strategic decision that could have a bearing on the health of your business, including its cash flow, the health and well-being of your employees, your community and even the economy at large.
But how do you do this when the most abundant source of information on all candidates — mainstream media — leads with inflammatory headlines designed to create divisions and confuse voters? Although it contradicts how most of us have traditionally voted, I encourage you to gather intelligence and focus on the policies that best support SMBs.
Whether you own a café, a clothing boutique or a startup business you run from the comfort of your home, beyond the big issues that have the potential to turn otherwise pleasant conversations into heated debates, it’s crucial to understand how tax policies, regulations, healthcare and trade tariffs can make or break your business.
Related: How the 2024 Election May Impact Interest Rates
In my work as a strategic advisor to both SMBs and Fortune 100 companies, I’ve seen firsthand how an understanding of candidates’ platforms and voting on the issues not often discussed on the campaign trail and in interviews has more of a direct impact on the success of their organizations.
Most business owners — small or large companies — share the same concerns: managing cash flow, keeping abreast of regulatory changes and benchmarking against the competition, all with an eye on expansion.
We can’t avoid the histrionics in most mainstream media (particularly during a contentious election), but remember, most of it is just noise. The real issues that matter to your business are being financially stable, having access to resources, and being able to adapt in a dynamic business environment — even amid a crisis.
If you’ve considered hiring an advisor, it’s easy to confuse the work I do with that of a business coach. While business coaches focus on personal development and team dynamics, the job of a strategic advisor is to help set long-term goals, stay on mission, and show business owners and CEOs how to lead with empathy.
Related: Survey: Small Business Owners Are Following Election Closely
Beyond the hot-button issues
“In this world, nothing is certain but death and taxes” — Benjamin Franklin
Few statements more accurately reflect life in a capitalist society. While we can’t avoid them, how tax policies (corporate tax rates, deductions and/or incentives) are structured can directly influence how much money you have to reinvest in your business.
For example, both presidential candidates discuss tax policies that will support large corporations in various ways. However, you shouldn’t infer from their rhetoric that their campaign promises imply a trickle-down effect on smaller businesses.
Where does your candidate stand on tax credits for recruitment, business expansion, and deductions? Whether you own a “mom and pop” shop or you’re the CEO of a multinational Fortune 500 corporation, the goal is the same: to retain more of what you earn.
Here are some things you should be considering as you head to the polls on November 5th.
Regulations
Regulations are in place for a reason: to protect consumers and the environment, ensure workplace safety, promote equity, and more. Setting regulations isn’t as easy as it sounds.
Overregulating an industry can hamper innovation, making it difficult for a business to stand apart from its competition. Under-regulation, by contrast, can favor larger corporations with more resources than bootstrapped businesses and startups. Deregulation is its own can of worms. After all, it benefits all businesses in one way: it reduces bureaucracy and oversight, but it can also reduce protections for the environment and consumers. So, there’s a lot to consider when it comes to where candidates stand on regulations.
For example, in heavily regulated industries such as manufacturing, healthcare, food service and others, you want policies that create a level playing field and protect your customers, but that won’t overwhelm SMBs with administrative red tape. Talk about a balancing act.
Access to capital
Whether you’re a startup, looking to expand, or just replace outdated equipment, access to capital can be a life saver for a small business. In addition to lines of credit with a bank, many small businesses turn to the Small Business Administration (SBA).
For example, in 2022, the SBA loaned $44 billion to 60,000 U.S.-based small businesses. If you were considering applying for a small business loan, do you know where your candidate stands on supporting SBA-backed loans?
Healthcare costs
Healthcare accounts for a significant outlay of cash for many business owners. To stay competitive in recruitment, regardless of a business’s size, it means offering health insurance for employees and their families.
Although seen as a necessary benefit, healthcare costs can cripple a small business. It makes sense to consider a candidate who offers a practical approach to reducing healthcare costs without compromising the quality of care you’re able to provide staff members.
As premiums and prescription medication costs continue to rise, offering such an important benefit can be a serious pain point for small businesses. As such, knowing where candidates stand on healthcare reform is critical.
For example, candidates who support providing tax credits for businesses that provide healthcare can help SMBs lower these costs. One candidate believes in reforms to the Affordable Care Act (ACA), while another supports solutions like Medicare expansion. Which one is right for you and your business?
Labor laws and minimum wage
Among other labor issues, each candidate approaches paid leave requirements differently. A candidate who advocates for balanced labor laws — ones that protect employees while also considering the realities of small business operations — can ensure your employees’ rights are protected while also ensuring profitability for you.
Although noble to advocate for higher minimum wages, for the small business owner who relies on lower-wage employees to fill certain positions, such an increase can mean the difference between success and failure.
An alternative is increasing the minimum wage moderately, and this could be complemented by incentives for businesses that create new jobs or offer training programs. It’s essential to evaluate these policies through the lens of your business’s long-term goals.
Trade and tariff policies
Trade policies are inherently complex, but that’s no reason to bury your head in the sand. Knowing where your candidate stands on international trade can allow you to predict better how their policies will affect your supply chain and, ultimately, your ability to be in the black.
Restrictions and changing international agreements can impact your operating expenses and control how competitive you are in a global marketplace.
Some candidates may support tariffs or trade restrictions to protect domestic industries. This makes sense. While it can benefit certain sectors, it can also drive up the cost of imported materials for many industries.
Free trade agreements may be an option as it helps reduce barriers to international commerce, making it more cost-effective for SMBs to source materials or export overseas. But are the benefits reciprocal to the other countries involved, and moreover, how important is this to you?
Why your vote matters
It’s easy to get pulled in by headlines and even easier to be swayed by a candidate’s views on things that we all feel are important. However, as a small business owner, your vote is not just about personal preferences. It’s about going with the candidate whose policies will allow your company to succeed and thrive — particularly in these uncertain economic times.