Can Politics Affect Your Business?
Before you think that I am about to touch the third rail, be assured that I will not be taking any political stance. How you vote is fine by me, and I will vote the way that I see fit. Also, know that your business or commerce in general, are not always the most important reason to vote the way you vote.
Your business and commerce in general are, however, considerations that every business owner should contemplate. To be clear, who gets into office has less to do with your business than the policies that are created, and in the long run who gets into office has very little affect on your business. It is those changes in policy that may have a short-term affect and require you to adjust the “way” and the “what” you do in your business.
In general, stability, or lack of change is usually considered best for business, and we hate it when Washington, or the State Capitol think they know better than we do what is best for business. Those radical changes often force us to have to change the way we do business. Again, that is never something we enjoy.
Having said that, radical changes may offer opportunity to smaller businesses because they are capable of pivoting more easily than larger businesses. The impact on business can be both direct and indirect because of changes in policies, regulations, and overall economic conditions.
Here are key ways in which politics could affect your business:
In brief, political factors can have both direct and indirect impacts on businesses, ranging from changes in laws and regulations to shifts in market confidence and consumer behavior.
Of this whole list I believe that Consumer Confidence has the greatest effect on most business both large and small. Consumer Confidence through an index details consumer attitudes, buying intentions, vacation plans, and consumer expectations for inflation, stock prices and interest rates. One could argue that changes in this index show a direct impact that consumers felt when there have been negative changes in the afore mentioned list. Further, this one can be dependent on the personality that you are voting for more so than the party or policies.
There have been times when the person we voted for has inspired Consumer Confidence that helps all businesses and grows our economy. The rising tide that floats all boats, that many politicians have talked about and aspired to create.
Our government has gotten so large that it is difficult for any one election to make a real difference. But it does happen every few decades when the stars align for a better economy, and those moments are when it is most beneficial to grow your business. Although you cannot change the outcome of an election, you can focus on working as hard and as fast as you can to take full advantage of opportunities to GROW.
Despite some of the prevailing thought, growth and a growing economy is what we all should want. When the large company down the street is doing well, and employing hundreds or thousands of workers, all the businesses around it also do well. The tax base goes up, the city has the money then to create a higher standard of living for all of us, and perhaps we can put a few bucks in the bank for that rainy day.
Understanding the political landscape and its potential effects on your business is essential for strategic planning, risk management, and adapting to a rapidly changing environment. Staying informed and prepared can help businesses navigate political shifts and mitigate their impact. It is always a good idea to stay informed about policy, tax, regulatory and overall economic changes to “stay ahead of the curve” so to speak as it applies to your business. How you do that is a discussion for another day, but it is always beneficial to stay informed in the best way you can. In the sage words of Doug Larson an author and political strategist;
“There must be a happy medium somewhere between being
totally informed and blissfully unaware.”
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