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We're less than two weeks away from the election that will decide who occupies the White House and fills vacant Senate seats, governor's mansions and countless local offices. Whether you realize it or not, the way you vote can affect the success or failure of your small business.
As tempting as it may be to choose candidates whose ideology and political leanings mirror your own, as a small or medium-sized business (SMB), your vote should not be driven by emotion alone. Instead, it should be a strategic decision that can have an impact 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 that when the most abundant source of information for all the candidates—the mainstream media—leads with inflammatory headlines designed to divide and confuse voters? Although it goes against the way most of us have traditionally voted, I encourage you to gather intelligence and focus on policies that best support SMBs.
If you own a coffee shop, a clothing boutique or a start-up business you run from the comfort of your homebeyond the big issues that have the potential to turn pleasant conversations into heated debates, it's essential to understand how tax policies, regulations, healthcare and trade tariffs can make or break your business.
Related: How the 2024 election could affect interest rates
In my work as a strategic advisor to both SMBs and Fortune 100 companies, I've seen firsthand how understanding candidate platforms and voting on issues that aren't often discussed on the campaign trail and in interviews has a more direct impact in the success of their organizations.
Most business owners – small or large – share the same concerns: managing cash flow, keeping up with regulatory changes and benchmarking against the competition, all with an eye on expansion.
We can't avoid the histrionics in most of the mainstream media (especially during a contested 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 to a dynamic business environment — even in the midst of a crisis.
If you've been thinking about hiring a consultant, 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, a strategic advisor's job is to help set long-term goals, stay on mission, and show business owners and CEOs how to lead with sensitivity.
Related: Survey: Small business owners are watching the election closely
Beyond 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, the way tax policies are structured (corporate tax rates, deductions and/or incentives) can directly affect how much money you have to reinvest in your business.
For example, both presidential candidates discuss tax policies that will support big corporations in different ways. However, you should not infer from their rhetoric that their campaign promises mean a trickle-down effect on smaller businesses.
Where does your candidate stand for recruiting tax credits, business expansion 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: to keep more of what you earn.
Here are some things to keep in mind as you head to the polls on November 5.
Regulations
Regulations are in place for a reason: to protect consumers and the environment, ensure workplace safety, promote equality and more. Establishing regulations is not as easy as it seems.
Over-regulation of an industry can stifle innovation, making it difficult for a business to stand apart from its competition. Conversely, under-regulation may favor larger corporations with more resources than struggling businesses and startups. Disorder is the can of worms itself. Ultimately, 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 in regulation.
For example, in highly regulated industries like 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 simply replacing outdated equipment, access to capital can be a lifesaver for a small business. In addition to lines of credit with a bank, many small businesses turn to them Small Business Administration (SBA).
For example, in 2022, the SBA loaned $44 billion to 60,000 US-based small businesses. If you've been thinking about applying for a small business loan, do you know where your candidate stands for SBA-backed loans?
Health care costs
Health care is a significant expense for many business owners. Staying competitive in recruiting, regardless of the size of a business, means providing health insurance to employees AND their families.
Although seen as a necessary benefit, health care costs can cripple a small business. It makes sense to consider a candidate who offers a practical approach to reducing health care costs without compromising the quality of care you can provide to staff members.
As prescription drug premiums and costs continue to rise, offering such an important benefit can be a serious pain point for small businesses. As such, knowing where the candidates stand health reform it is critical.
For example, candidates who support providing tax credits for healthcare businesses could help SMBs lower these costs. One candidate believes in reforms to the Affordable Care Act (ACA), while another supports solutions like expanding Medicare. Which one is right for you and your business?
Labor laws and minimum wage
Among other employment issues, each candidate approaches paid time off requests differently. A candidate who advocates for balanced labor laws—ones that protect employees while also taking into account the realities of small business operations—can ensure that your employees' rights are protected while also providing benefits for you.
While it is noble to advocate for higher minimum wages, for a small business owner who relies on lower-wage workers to fill certain positions, such an increase could mean the difference between success and failure.
An alternative is to raise the minimum wage moderately, and this could be complemented by incentives for businesses that create new jobs or offer training programs. It is essential that these policies are evaluated through the long-term objectives of your business.
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 better predict how their policies will affect your supply chain and, ultimately, your ability to be in the black.
Restrictions and changing international agreements can affect your operating expenses and control how you are competitive in a global market.
Some candidates may support tariffs or trade restrictions to protect domestic industries. This makes sense. While it may benefit some sectors, it may also increase the cost of imported materials for many industries.
Free trade agreements can be an option, as they help reduce barriers to international trade, making it more cost-effective for SMBs to source materials or export overseas. But are there mutual benefits for the other countries involved, and furthermore, how important is this to you?
Why your vote matters
It's easy to be drawn in by the headlines, and it's even easier to be drawn in by a candidate's views on the things we all think are important. However, as a small business owner, your vote is not just about personal preference. It's about going with the candidate whose policies will allow your company to succeed and thrive—especially in these uncertain economic times.