Some guidelines for navigating through the red, blue, or purple uncertainty.
5 min read
The opinions expressed by the entrepreneur's contributors are their own.
This year is causing great uncertainty among small businesses. While entrepreneurs deal with the same movie and different characters every election cycle, 2020 has put small businesses in an incredibly precarious place. The business challenges posed by the pandemic, coupled with an election cycle, are of overwhelming concern. To navigate this environment, small business owners and entrepreneurs need to stay focused and positive as we all carefully navigate the minefield.
Small businesses – the heart of America – are played as one of the greatest farmers in the political game. With more than 32 million US companies, rhetoric and promises made by candidates are often rigged to woo this constituency. Much is at stake in this small business choice. According to a Verizon Business Survey, 81% of small business decision-makers believe small businesses in the US will be affected depending on the election results. In addition, 57% believe the election result will affect companies' financial health.
Each of the three possible election results – Trump wins, Biden wins, or Undecided – affects different challenges small businesses face.
Related: 5 Reasons Small Business Owners Should Vote
The red, blue, and purple impact
In a "red" scenario where Trump is elected for a second term, the economic ramifications for small businesses include a favorable tax and regulatory environment aimed at generating a wave of new business. Other areas that affect the economy, such as the environment, are likely to be negatively affected by this scenario.
The economic impact of a “blue” scenario in which Biden wins may include increased regulation and tax increases. For companies grappling with a difficult pandemic economy, this scenario may mean that only the strongest will survive. However, Biden's climate and environmental plans would likely lead to more green jobs in the US.
While a Biden or Trump victory has advantages and disadvantages for small businesses, the “purple” scenario – where the election has no clear immediate winner – is the worst case scenario for companies. That result would put businesses in an economic limbo that would limit things like expansion and recruitment and would be very bad news for business in general.
Related: 4 Ways To Turn Uncertainty Into Strength For Your Business
Regardless of the outcome, small business owners play an important role in managing the area of uncertainty for their employees, their families and their businesses. There are some basic strategies we can all use during this journey over the next few months:
There is a lot of noise during an election. Entrepreneurs are well advised to cut the noise and focus on what they do best – running their business. The key is to focus on the things that can be controlled, like spending, controlling costs, and all financial management. Avoiding the risk of reactive decisions and keeping a laser focus on growth strategies are critical to successfully managing business uncertainty. During the election, small business owners should also focus on how to stay agile and adapt to changes in the business climate after the election.
Block and tackle
The basics are crucial in an unsafe environment. Entrepreneurs with the strongest foundation are those who survive challenging times. This includes building a positive corporate culture that every team member values, prioritizing interactions with customers or customers in order to deliver exceptional products and services, and monitoring the company's financial health to make quick decisions when the economic climate changes changes. All of this is critical to the blocking-and-tackling approach to business resilience – and very easy to lose track of during the pressure cooker in the 2020 elections.
Election cycles and the associated uncertainty are energy vampires for small business owners. A positive outlook and a focus on the future go a long way towards keeping your business stable. Regardless of the election result, small business owners will always find a way through. Time will pass and the world will keep moving. A positive outlook is essential to keep business moving – on and on through uncertainty.
A Vistaprint poll, quoted by the New York Post, found that more than half of small business owners think the upcoming elections are the most important of their lives. The survey also found that a third of business owners feel worried or worried about the election, 24% said they were nervous, and 16% said they were downright scared. But despite the fear, engagement rates have risen – 62% of small business owners are more interested in this upcoming election compared to the 2016 election, according to a survey by the U.S. Chamber of Commerce and MetLife.
As the result will be revealed to the world in the next few weeks, we can trust that the sun will shine again and that small businesses will face the occasion.
Related: 4 Ways 2020 changed corporate culture forever