Small business needs to keep an eye on the election to gauge economic policies going forward. And how the economic impact of COVID-19 will be handled by the president.
Small Business Trends contacted Shawn Dill, a small business consultant. He supplied his views on the 5 policies that were key to small businesses no matter who wins the presidency.
He started by tackling small business autonomy.
“Both candidates will impact small businesses in different ways,” Dill writes. “Basically, small businesses need to operate SAFELY within the guidelines of each state. Politicians should allow the people to decide if they feel like they want to visit a business.”
He says businesses need to educate the people on safety measures and adhere to social distancing and masks. And he says the upcoming president elect shouldn’t have the final say on what SMBs are considered essential.
“People are generally smart. They need to be given the ability to open up and stay alive,” he says. “The consumer should decide what they consider an essential business. They assume the risk to go to a specific place.”
Tax Reform Policies
“Both candidates are touting that the lower/middle class are being highly protected from tax reform,” Dill says.
However, he does mention some thresholds business owners need to pay attention to.
“For individuals that are making $400K+ a year, you may get taxed radically higher,” he says. “That could impact your ability to operate.”
It’s possible you may not be able to offer incentives, employee perks and even raises if rates change.
Economic Stimulus Policies
Dill outlines the two types of stimulus business owners need to watch. He says the first round of $1,200 stimulus checks was paid out to individuals. Those are designed to keep money in the communities. They help to keep local shops going.
“With these $1,200 checks, people need to put money back into the economy through small business, not Amazon,” he says. This type of support will still be critical after November.
The same goes for The Paycheck Protection Program (PPP).
“This helps the small business owners stay afloat directly by helping them with payroll. And other eligible expenses that will help the business stay open,” he said.
Capital Gains Policies
If you’re thinking about selling your business due to the pandemic or retirement, the next administration will be important.
Dill explains, “Selling your business is the finish line. If capital gains increase, this will not only affect the wealthy who are in real estate and stocks. It will massively affect your “exit strategy”.
Loan and Credit Policies
He also has some predictions for 2021 regardless of who wins The White House.
“If the economy cannot rebound strongly, there will be less money,” he said. “And that will affect the lender’s willingness to loan it out. There is a likelihood that loans and credit will be tight next year, regardless of who wins.”
Finally, Dill offers some general suggestions on how small business can get through the pandemic.
“Make sure your business’s marketing is up to date: specifically around COVID-19 and racial justice sensitivities,” he said. Dill also says you should reevaluate your business model to include in person and virtual customer demands.