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The New Supreme Court Justice and Your Business

What does the new Supreme Court Justice and your business have to do with each other?

With all of the hullabaloo surrounding the election of 2016, it’s easy to forget that there is a vacancy on the Supreme Court that will be filled by this president.  Many will forget a president’s decisions over his or her term of office. The next administration may even revers them. But the ability to leave a lasting impression on the American justice system is an example of the power of the office of President of the United States.

The Presidential Decision

A president’s term is only 4-8 years, but the decisions they make in those years are crucial for America’s future. Since Supreme Court justices serve for life, whoever is appointed will influence our legal system for decades.

Some of the historical decisions that have impacted the US were:

  • Marbury v. Madison (judicial review over Congress)
  • McCulloch v. Maryland (federal power over states)
  • Gideon v. Wainwright (right to attorney)
  • Roe v. Wade (right to abortion)
  • Obergefell v. Hodges (same-sex marriage)

While there are many of good (and bad) examples of how the Supreme Court has shaped the United States, it is crucial to note the significance and importance of a Supreme Court Justice nominee.

(Before any nominations are made, it’s wise to analyze areas in your company that would be impacted by a Supreme Court decision. To do this, check out our free External Analysis whitepaper by clicking here.)

President-Elect Trump’s Potential Nominees

Justice Antonin Scalia’s untimely death in February 2016 created a vacancy on the US Supreme Court. President-Elect Donald Trump has compiled a list of potential replacements – with the majority having a conservative agenda. Additionally, the two liberal-leaning justices are also approaching retirement. With 1 vacancy and 2 potential vacancies in Trump’s tenure as President, he will potentially have 3 positions to fill.

As a result of these positions being empty and the need for them to be filled, the landscape of the business environment will dramatically be shaped due to changing policies, justice, and rulings.

According to Business Insider, Trump’s potential nominees are as follows: (links are attached for biographies)

  1. Keith Blackwell
  2. Charles Canady
  3. Steven Colloton
  4. Allison Eid
  5. Neil Gorsuch
  6. Raymond Gruender
  7. Thomas Hardiman
  8. Raymond Kethledge
  9. Joan Larsen
  10. Mike Lee
  11. Thomas Lee
  12. Edward Mansfield
  13. Federico Moreno
  14. William Pryor
  15. Margaret A. Ryan
  16. Amul Thapar
  17. Timothy Tymkovich
  18. David Stras
  19. Diane Sykes
  20. Don Willett
  21. Robert Young

So Why Does This Affect Your Business?

As we discussed earlier, decisions made by the judges have the ability to change the course of the economy, justice system, and social system. With the new justices, however, decisions that have already been decided on may be reviewed again.

A Supreme Court Justice and your business go hand in hand due to the close nature that business has with policy, social, and economic issues.

Example: Affordable Care Act & Gay Marriage

The Supreme Court has already ruled on the Affordable Care Act and the legalization of gay marriage during President Barack Obama’s tenure. While these may seem like social issues – right to basic health care and right to gay marriage – there are huge implications for businesses as well.

Who gets benefits?

Previously, only the employee, their spouse (heterosexual), and their children have the opportunity to be provided healthcare through their company or through Obamacare.

But with the legalization of gay marriage, more people are open to healthcare. Although this is great for the people affected, companies will foot the bill. After talking to multiple small businesses (1-10 employees) across Texas, I’ve seen companies go out of business due to Obamacare and others that are now spending over $12,000 more than what they were previously spending.

Companies must provide benefits to all marriages (401k, health, parental leave, etc.). This leaves companies paying more than before for benefits. While this is great news to these employees, it’s a great example of just how Supreme Court decisions impact the bottom line of companies.

Review

Due to the extreme discontent among businesses nationwide, the Affordable Care Act will be amended and potentially reviewed again by the Supreme Court with a different justices. With a new set of justices (with a potentially different ideology), decisions could be overturned.

Review isn’t always bad though. After looking through our rough history with segregation and slavery alone, reform and change is necessary to keep the country (and business) moving forward.

Want to know how to make decisions easier for your company? Download our External Analysis whitepaper to take control of your business during this unpredictable time!

How Supreme Court Decisions Impact Businesses

supreme court justices and businessBefore we go into how Supreme Court decisions impact business, we must go over how cases get to the Supreme Court. Cases reach the Supreme Court in 1 of 3 ways – including original jurisdiction (dealing with mostly foreign affairs and diplomats), state Supreme Courts, and Federal Courts. A case progresses from the lower courts upward. Then if granted appeal enough times, a case can reach the Supreme Court. However, the lower court’s previous ruling stands if there is not a majority decision.

The Supreme Court also has checks and balances on the other branches of government. Their main priority is to uphold and interpret the Constitution; therefore the 9 (8 current) Supreme Court justices will try anything debated as unconstitutional in Congress or the executive office.

Nine Supreme Court Justices make decisions about the constitutionality of matters brought before them. Consequently, businesses are impacted because money is involved in most of these matters.

What Areas You Should Watch For

Fortune Magazine outlined several areas to watch for, especially after Scalia’s death. The Supreme Court could impact these following 5 areas in the new year are:

For example, United States v. Texas deals with immigration and DAPA (Deferred Action for Parents of Americans). As one of the states that did not join the original suit, Texas faces the decision that 2.2 million illegal aliens residing in Texas (out of the 3.6 million total illegal aliens) are eligible for DAPA. This potential decision will then increase competition for jobs, increase benefits and taxes for those added employees. In addition, it will increase unemployment rates due to the millions being added to the limited job pool.

Oil, gas, and mining companies can expect major change stemming from a Supreme Court decision on pollution regulations.

Expect change in technology and medical companies when it comes to intellectual property, patent law and potential changes to the Affordable Care Act.

Companies located in northern America will face adjustments in union laws, since the majority of unions are located there.

Conclusion

Whatever industry you are in, it’s important to know what type of decisions will greatly impact your company. Conduct an external analysis to start your path towards capitalizing on strengths and opportunities alongside minimizing the negative impact of weaknesses and threats. Get your free copy of our External Analysis whitepaper here.

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How the Presidential Election Affects Your Business 

“Donald Trump is a philosophically unmoored political opportunist who would trash the broad conservative ideological consensus within the GOP…”

“Hillary Clinton should be in jail because she is crooked, and our nation will suffer from her corruption…”

It’s election season and the Presidential race is a hot topic. Some might say that this election is one of the most memorable elections in history. However, both the Republican and Democratic candidates have gained somewhat of an infamous reputation… and both candidates have a hand in why the presidential election affects your business.

How will our country fare in such a controversial time? More specifically, what will happen to our economy, our businesses?

Animosity in the Workplace

Presidential election season often puts people in the mood for a good debate. When Donald Trump and Hillary Clinton were announced to be the Republican and Democratic Candidates,  things really got interesting.

Animosity between followers of the two parties have clashed like never before. Stealing signs, protesting, creating hate-filled hashtags, and more. Over the past several months, we’ve also seen the presidential election create a financial dent in companies in various capacities.

Can political talk within the workplace cost you your career?

“So… who are you voting for?” This is the question that sparks many an argument.

Long gone it seems is the notion to not talk about religion or politics in the workplace. Tensions are high, and it’s becoming harder to focus at work with the end in sight. Many businesses across the United States are experiencing HR conflicts due to the election – one example of how the presidential election affects your business.

For example, Sarah, an editor of a cooking magazine, decided to hang a “Vote for Hillary!” poster outside of her door. As a result, she was placed on disciplinary probation and was sent home.

Sarah is not alone in the matter. In a recent article, the NY Times reported about how bringing political issues into the workplace is costing jobs. High employee turnover during election season is causing more instability in addition to the uncertainty caused by the elections.

Freedom of speech?

While it may seem like employee discrimination, a private company can act freely in their hiring and firing decisions. Particularly businesses in Texas (a right to hire/right to fire state), employees are not necessarily free to express any opinion and keep their job safe. The only safety net is in keeping your mouth shut.

This issue can only be mitigated by state employee protections. The problem is that so few states protect employees from discrimination for political speech or opinion (only California, New York, and Washington D.C. protect an employee specifically from political activity or affiliation). Private employers make up about 85% of the workforce, and offer little to no protection from being fired due to political views.

Unless your company is all about letting the people freely speak, try to keep the political discussion to a minimum. Instead, create a safe environment a healthy dialogue about how either candidate will impact the company with new policies, guidelines, laws, economic fluctuations, stock market increases/decreases, and business confidence. Use an external analysis as a guideline to create an awareness of potential changes expected as well as a plan to react to said changes.

Other issues within the workplace

I’ve never seen a customer ask an employee about his or her political views, let alone reject their business because of it. The same goes for the business, and their “right to refuse service.” With the issues arising between people, and not just the employees, it seems harder to make a sale.

For example, let’s say you needed to buy a shovel. You make it to the local hardware store, but there’s a “Vote for Trump” sign in the window. Would you give them business? I bet you would if you were pro-Trump. But what if you weren’t?

This isn’t assuming that customers are discriminatory (for the most part). The idea of “voting with your dollars” has never been more in evidence. Consumer spending is less optimistic than before, but like most downturns, there are indicators for a stronger economy within the next six months.

Presidential Election Affects Your Business

The Washington Post recently quoted the chief economist at the National Federation of Independent Business, Bill Dunkelberg: “Uncertainty is high, expectations for better business conditions are low, and future business investments look weak… Our data indicates that there is little hope for a surge in the small business sector anytime soon.”

Check out a blog we wrote this summer about how uncertainty surrounds events like the elections.

Market & Financial Impact

Money Magazine recently published quotes from Mark Cuban and Marc Faber saying, “Stocks will plunge if Donald Trump is elected President. And the bond market could capsize if Trump goes ahead with plans to renegotiate the national debt. Yeah, but if Hillary Clinton wins the White House, she’ll cripple the economy by hiking taxes by $1 trillion.”

There are good and bad consequences to either candidate being elected. As you are evaluating who to vote for or preparing for the impending announcement of our next President, start by ranking the importance and level of impact a particular stance has on your company.
Look at stock markets, debt, foreign policy, immigration, taxes, etc.

Bottom line: vote.

Want to know how to make decisions easier for your company? Download our External Analysis whitepaper to take control of your business during this unpredictable time!

Conducting an External Analysis

Regardless of the animosity and drastic differences of the two parties, we have to remember that either way, someone is going to change the economy. As a result of the presidential election alone, the economy has experienced a slight downturn. Imagine how the selection of a new president will change the future of your business.

According to Wall Street Journal, certain businesses are holding off on million-dollar construction projects until after November 2016. Compared to the previous year, predictions were much more optimistic. New tax regulations, health codes, and other economic policies are examples of external forces directly associated with the presidential election.

The Future with Clinton

When we make projections for a company, we look at the previous years’ financials. In this case, we’ll look at Hillary Clinton’s previous actions to predict the future of our country… with her role as the secretary of state. Clinton was involved with three scandals – emails, Benghazi, and the Clinton Fund.  Will American citizens look harshly on this?

From an economic standpoint, Clinton plans to cut taxes for the middle-class, raise the minimum wage, and other actions related to equality and creating jobs. There is a cost associated with these plans and you must evaluate how your business will be affected.

The Future with Trump

What do Donald Trump’s previous actions say about him?  He has been involved with multiple scandals related to racism, sexism, and violence. How will this affect his ability to lead our country?

From an economic perspective, Trump wants to regulate tax codes in order to grow manufacturing within the United States. His controversial idea to build a wall between the US and Mexico will almost certainly impact trade with our neighbor to the south.  How will these measures affect your company?

Conclusion

Rather than spending time debating your co-workers over the merits of this candidate or that one, really dig into what each candidate’s plans will mean for your company. Take the time to vote.  Don’t take your eye off the ball because of November 8th,  but instead look ahead for what’s to come on November 9th.

presidential election affects your business

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The Trump Effect | Part 2 How to Combat Uncertainty

Uncertainty looms as we inch closer to election day on November 8, 2016. Companies are starting to bite their fingernails hoping for one result but not really knowing what to expect from any candidate.

Brandon Julio, Professor at the London Business School and co-author of “Political Uncertainty and Corporate Investment Cycles,” wrote…

“Election outcomes are relevant to corporate decisions, as they have implications for industry regulation, monetary and trade policy, taxation, and, in more extreme cases, the possible expropriation or nationalization of private firms… “

Last week, we began a discussion about how presidential elections produce uncertainty in the economy and cause business confidence to waver.

(If you haven’t read the The Trump Effect | Part 1, read it here.)

Now that we’ve analyzed how election season can bring about uncertainty and affect business confidence, let’s talk about what you can do about it.

uncertainty

Hillary vs. Trump

Just in a week, we’ve gone from three major contenders to two: Hillary Clinton and Donald Trump.

After observing hateful Tweets, continuous backbiting, and comparing one to the other, consumers, businesses, and everyone else are feeling a little hesitant. Either way, in less than 5 months the United States will have a new President.

Screen Shot 2016-06-08 at 9.58.16 PM

https://data.oecd.org/

Keri Gorman, Capital One’s Head of Small-Business Banking, claims that “now is a critical time for small businesses as the country anticipates a change in leadership and new opportunities and challenges, such as market dynamics and new regulations and tax laws, which can have a significant impact on business results.”

Throughout the past 16 years, we’ve seen 2 presidents and now 5 elections. Business confidence fluctuates fairly regularly, but it’s definitely interesting to take note that before each election, there is either a rise or dip in overall business confidence.

Duke University recently released the results of their survey of CFOs. When asked to compile 5 or so questions pertaining to politics and how it impacts their company’s morale, 61% of all CFOs surveyed responded that the upcoming election (between Trump and Clinton) are a concern for their company. There were 4 other political uncertainties that CFOs listed as concerns. Those include tax reform at 28%, minimum wage at 32%, Washington dysfunction at 54%, and proposed regulations by either party at 45%.

So what do you do in time of uncertainty?

Think

During this time, come up with potential scenarios that you might encounter during the course of an election cycle and 6 months after. This mentality of being forwarding thinking rather than historically minded results in you being more prepared for uncertainty.

The potential path is a little clearer now that we’ve narrowed it down to two primary candidates. Research each of their proposals. Read news articles from both sides to develop an unbiased view of their positions. Now, write down all of the potential opportunities and threats that could come from either candidate. Understanding what could come about out of the election will better equip you to start putting together action plans to react to either candidate.

This method can go for any uncertainty in the market. You may not know what is going to happen or who is going to be elected or what war is going to break out next, but if you identify those external environmental factors that impact your company, it will be easier to battle.

Find Opportunity in Uncertainty

 It’s only when the tide goes out that you learn who has been swimming naked. – Warren Buffett

Screen Shot 2016-06-08 at 8.53.28 PM

As elections near and uncertainty rises, you’ll see be able to see the metaphorical “tide” going out. Some will certainly feel it sooner than others.

Analogy: Think of fishing in a river that has a dam holding back water. Any changes in the water level are felt quickly by those fishing close to the dam, but the impact is felt later by those further down the river, further from the dam.

Where are you in the river?

Many of our clients are oblivious to what is occurring within their company. Companies essentially stick their head in the sand and pretend that nothing is happening until the tide goes out… Exposing that you’ve been “swimming naked”.

We want to show you the opportunities you and your company can take advantage of during a time of uncertainty or crisis.

Three opportunities that you can take advantage of are as follows:

  1. Weed the Garden
  2. Learn How to do More With Less
  3. Prepare for the Next Battle

#1 Weed the Garden

Even though uncertainty abounds, it presents an opportunity to “weed the garden”. Clean up your company so that you can react to whatever November 8, 2016 brings.

Perhaps an obvious opportunity is to get a handle on unnecessary costs such as overhead expenses. Overhead costs can easily rise with revenue, but as sales decrease often overhead stays the same.  Take a look at your overhead costs as a percent of sales and see how they compare to your most prosperous times.  If you’ve had some creep, it’s time to do some weeding.

Another place to look is people. It may seem harsh, but this is the right time to remove bad hires. You have a commitment to your people to keep your business running, so remove those people that don’t fit. When business turns around, you’ll be prepared to take on the right fit.

Last, check out products and services. Compare their profitability, and cut those that are costing you money or not highly profitable.

(Think you might have a pricing problem? Check out our Pricing for Profit Inspection Guide!)

After doing those simple things, your company is leaner and more prepared to adjust to any policy changes to come.

#2 Learn How to do More With Less

Your business will certainly benefit from increased productivity during times of uncertainty. Improving productivity is different for every business. To identify what can improve in your business operations, evaluate the following formula.

Productivity = Throughput / Resources

Determine the throughput and resources for your business.  Using the same or fewer resources to generate greater throughput will improve productivity, and therefore profitability. And with slower sales, you can find the time to evaluate your operations.

This is a useful step for multiple situations including economic crisis, uncertainty, low business confidence, etc. Create an environment where you are ready to take on whatever gets thrown at your company.

#3 Prepare for the Next Battle

What do hurricanes and wars have in common?

Well, it’s what people do when they are over. First responders to a hurricane plan for how they will do better during the next natural disaster. And the military strategizes how they will do better in the next war.

This is your time to evaluate what your company can do better when the economical, political, and financial climate is uncertain.

You may not be currently affected by the uncertainty of the election season, but remember the fishing analogy…  When you feel the effect of an event depends entirely upon where you are in the river.  If uncertainty is affecting the marketplace, it will affect your business sooner or later.  Best to be prepared.

What now?

You need to create a plan for each of the cases above. What will each case look like in regards to your financials – revenue projections, cash flow projections, etc. How much overhead can you carry in these stages? Be prepared to take necessary steps to ensure that your business is profitable and cash-positive.

Performance Indicators

Take some time to seriously evaluate Key Performance Indicators (KPIs). You’ll need to know major KPIs in your industry. Figure them out by talking to key customers, investigating competitors, and researching benchmarks. Once you have identified some KPIs, it’s time to track them. Track KPIs and analyze variances. Then you may use trend tools, what-if scenarios, and breakeven analyses. Create a plan for each stage so that you are ready to act if your KPIs indicate it’s time.

Screen Shot 2016-06-08 at 8.55.04 PMBut before you evaluate your KPIs, check to make sure you’re pricing your products or service to return yourself a profit. Download a free guide to check if you have a pricing problem and to fix it soon! It’s better to be proactive about the things you can control in uncertain times, such as the presidential election, than to find out that you’re a frog in a boiling pot. This analogy hints that with extremely slow rate of change, no sensation is felt.

By taking action, you’ll be able to maintain internal confidence because you are monitoring everything that you can to protect your company.

Moving Forward Through Election Season

Professor Julio wrote, “if an election can potentially result in a bad outcome from a firm’s perspective, the option value of waiting to invest increases, and the firm may rationally delay investment until some or all of the policy uncertainty is resolved.” Business confidence is low and that could potentially damage your company’s internal morale. As a financial leader, business leader, or owner, start capitalizing on tools such as those that focus on digital, analytic, and social. These are easy ways to prove that you’re coping with the external environment being so uncertain.

The election process is something that you cannot control (besides your vote), so control that which you can and continue to remind your team that you’re supporting them.

Last week, we offered you our Know Your Economics Worksheet in the Trump Effect | Part 1. This week, download our Pricing for Profit Inspection Guide to apply what you learned to easily discover if your company has a pricing problem. This is simple thing you can do to deal with uncertain times. Click here to get your free guide!

Pricing for Profit Inspection Guide

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The Trump Effect | Part 1 Business Confidence & Uncertainty in Elections

Business confidence is low. Uncertainty is high. Candidates are spewing whatever words they think will win that one last vote. Challengers have dropped out left and right, leaving us with 3 major contenders.

business confidence presidential elections

Make America Great Again. | Hillary for America. | A Future to Believe In.

Now what?

business confidence presidential electionsPresidential elections bring all kinds of uncertainty. Voters are choosing from candidates that have opposite policies with little to no middle ground. Businesses aren’t sure what to invest in and when the oil crisis will end. Economists are unsure of where the economy is going.

Business confidence: an economic indicator that measures optimism and pessimism that business managers feel about the outcome of a company.

Uncertainty: state where there is no objective nor are any outcomes or alternatives known.

Talking is one thing, whereas acting could result in something entirely different. If Sanders is preaching for free college, we have to assess how those words are going to work when they are acted upon. Whereas if Trump is pushing for the wall, we have to acknowledge that there is a lot more work that goes into building a wall than words can speak. If Clinton wants to have 33% of all energy sources come from renewable energy by 2020, we have to factor in the feasibility of accomplishing the goal in that time frame.

Talk is just talk. And there’s a lot of talk going on with presidential campaigns! This causes both economists and businesses to be uncertain about what to expect. When you have three strong candidates campaigning in the United States presidential elections, it can be so easy to focus in on the differences (which are many).

Economists Are Stumbling

business confidence presidential elections

Election Angst Hurting US Economy http://www.cnbc.com/2016/06/03/election-angst-hurting-us-economy.html

Economist reckon that because of the vast differences of the candidates, we are about to see the most uncertain election in decades.

If you were to compare Trump and Sanders, it’s rather difficult to draw a direct comparison. Because of their different beliefs, economists have been forced to adjust their economic forecasts. For example, Trump is focusing on enhancing immigration laws whereas Sanders is emphasizing the need to adjust the tax code. Because of these different focuses, economists aren’t sure what to do causing severe uncertainty.

Elections Impacting Businesses

There are several macroeconomic issues that businesses witness during presidential elections: stock market volatility, currency value fluctuations, decrease in business confidence, and increase in uncertainty.

Disclaimer: We acknowledge the possibility that the economy has affected the election process (rather than elections impacting the economy). The issue of elections and business confidence is too complex to make any one assumption.

Stock Market Volatility

As the stock market becomes more volatile, investors become more anxious about making a bad investment and more conscious about making any investments at all. This results in a dip or potentially a collapse in the stock market.

According to Forbes, the Dow Jones Industrial Average is typically higher during the pre-election year out of the 4-year cycle between each election. BUT when a new president is elected, as in the case of 2016, the stock market is at its lowest of the 4 year cycle. Think of Bush in ’89, Bush in ’01, and Obama in ’09.

Value of Currency

The value of currency adjusts as a response to the change in interest rates. Each party (Republican or Democrat) has an influence on the value the US Dollar (USD). Different economic and political policies enacted by the President, among other external economic or international governmental factors, either increase or decrease the value of a dollar.

Over the past 30 years, we’ve seen inflation rates fluctuate so severely due to political elections that entire countries or regions find themselves in economic distress, a debt crisis, restricted resources, and terrible conditions for those living in the countries.

Especially during the months leading up the election and those following after the election, expect changes in value of currency.

Changes in value of currency do occur in other times than change of political command.

Business Confidence

Thomas Costerg, Senior Economist of the Standard Chartered, said that “the issue is that many candidates are ‘talking down’ the economy, affecting confidence.”

AICPA_web-logo_1C_PMS293_rThe American Institute of CPAs puts out a quarterly report that surveys businesses, CPAs, and the economy.  The 2nd Quarter of 2016 Report was released recently and showed surprising results. While this report does not compare the economy/businesses to the election period, AICPA found that optimism improved from 28% to 37% in Q2 and pessimism from 34% to 21%. Inflation is becoming more of a concern now as we progress closer to election day.

(Are you confident about your company’s unit economics? If not, download our free guide, Know Your Economics, to calculate your economics.)

Uncertainty

logo-2As an entrepreneur, I am part of many business organizations including the Turnaround Management Association. Financial advisors, credit advisors, bankruptcy attorneys, business owners, CFOs, and many others comprise this organization. At a recent meeting, the topic under discussion was how long we can expect the oil crisis to continue. Very quickly, the conversation turned towards the election currently taking place in the United States. The following ideas were raised during this conversation:

The oil crisis all depends on who wins… Who is elected as the president of the United States determines whether the oil crisis will continue beyond 2017 or will taper off mid-2017. 

Business aren’t sure what to do right now because that could all change come November 8th.

 Everything could change. Nobody really knows what to expect from any of the candidates at this point. 

Consumers and businesses are wary about investing and spending during this time of uncertainty. In addition, new tax codes, economic policies, health insurance regulations, etc face businesses. Even adjustments to the Federal Income Tax (FIT) impacts the sustainable growth rate of a business. There is a lot of uncertainty that business owners and financial leaders face.

SWOT Analysis

These issues could have severe consequences for some companies. See these as threats. This is why during a SWOT Analysis, you complete a PEST Analysis where the first letter of the acronym is P for political.

Because of this uncertainty, bankers and economists find that companies avoid hiring or investing in large projects during the second half of an election year due to the sheer unpredictability of the situation.

Arleen R. Thomas, CPA, CGMA, American Institute of CPAs (AICPA) senior vice president for management accounting and global markets, concluded after the first quarter poll hosted by the AICPA that “company executives are clearly monitoring the potential business impact of the presidential election. But overall economic conditions and challenges for their particular industries are weighing more heavily in their calculations right now…” Additionally, Thomas claimed that more weight being placed elsewhere is “likely why [they’re] seeing little election-cycle impact on such key categories as hiring or capital spending.”

During this uncertain time, it’s useful to find economic indicators that impact your business.

What does all this mean?

Typically, we find that business owners or financial leaders stick their head in the sand during times of uncertainty. Remove your head from the sand. Know that this is happening. And prepare for anything. It will be okay. This too shall pass. business confidence presidential elections

What can you do now?

First things first… Make sure that before you analyze external factors that could impact your company, you know the basics of your company. More specifically, know your unit economics. This is one simple step that you can do to ensure that you, your management, and your company know where you stand.

If your economics are out of whack, then regardless of who gets elected, your business will suffer. If you’ve checked that your economics are sound and you’re still finding issues, you might have a company that is in trouble. This could be an issue with internal factors.

If your company is still bleeding, then check out next week’s blog for the Trump Effect | Part 2.

To help you deal with this uncertainty, we want to give you a free guide, Know Your Economics, that will help you analyze the building blocks of profitability in your company. By knowing your economics, you’ll be better equipped to project the future more accurately and deal with the economic uncertainty to come.

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