Elections occur across the country every year but in years when there is a presidential election, the stakes certainly rise — not just for the country as a whole but for everyone who lives here. Near the top of the list of those who stand to be affected by the election are small businesses. In particular, political uncertainty in the months leading up to the election can affect confidence and decision-making for consumers and business owners and the election results themselves can harken a change in business regulations.
Bleak message points leading up to the election can cause anxiety among small business owners that can lead to shortsighted decisions. It’s a better strategy to focus on economic factors such as inflation, increased cost of living and a potential recession when considering making any changes to your financial habits. While it’s not a bad idea to understand how the fact that it’s a presidential election year may affect your small business, there’s no reason to unnecessarily panic.
Election Issues Affecting Small Businesses
In this presidential election year, four key issues may have an impact on small businesses: taxes, regulation, healthcare and trade. It is important for small business owners to be informed about these issues and make sure they’re prepared regardless of which way the election goes.
While anxiety about the election’s outcome can have a negative effect on consumer spending, some small businesses will actually be positively affected:
- Businesses selling political merchandise will see sales boosted.
- Businesses in swing states will see increased traffic.
In addition, some people may be prompted by the election to start new businesses because they want more control over their work and income. And those who already operate small businesses may feel the need to prepare themselves to get through a time of political uncertainty.
Non-Traditional Funding During Election Years
It’s no secret that even in the best of economic times, it can be challenging for some small business owners to secure funding from traditional sources such as banks. Throw in some political volatility and the odds of being approved can get even lower — so alternative financing options may look more attractive in an election year.
Unlike their traditional counterparts, alternative financers are less concerned with external “noise” such as how the market is doing and more concerned with the specific situations small businesses find themselves in. That fact can mean alternative lenders may become more relevant during periods of political uncertainty and be able to provide much-needed stability for small business clients while others are fretting about politics.
The Bottom Line
As a small business owner, you should not let the looming presidential election derail your plans for moving forward. The fact is, over the years small businesses have demonstrated their resilience time and time again — showing they are able to not just survive but thrive despite political challenges. This year should not be any different, even if the predicted mild recession midyear occurs; you want to ensure your business is in a position to take advantage of growth opportunities whenever they arise.
Clear Skies Capital has helped many small businesses determine the business loan that’s best for them and get the financing they need in a timely fashion in a presidential election year. Contact us today at 800-230-9822 for support.