How Politics Are Affecting Your Business
Author: MiladyPro | Posted on: January 01, 2017
In years to come, beauty professionals will remember 2016 for a number of reasons. It was the year of glitter roots, matte lips, rainbow hair, and the presidential election.
Wait. How did that last one get in there? Although politics aren’t directly tied in to everyday life in our industry, elections do have long-term effects on us as professionals and the small businesses we own and work for.
A new group of politicians and decision makers will be ushered into our nation’s capital this January, and each person will do things a little differently than those before them. If you’re wondering just how elections can affect you as a beauty pro, here are some examples:
The percentage of taxes that your small business must pay. If you own or co-own a salon or spa or work at one, all small business laws apply to you. Depending on the fiscal leanings of the majority party, those that the President, House of Representatives, and Senate belong to, there may be changes to the amount of taxes your small business will owe every year.
If the percentage remains the same or decreases, you might be able to use funding for investment purposes: maybe you can hire a new stylist, purchase some new equipment, or be able to offer new benefits for your employees. If the taxes increase for your small business, you might need to re-evaluate your current spending on everything which could create some big changes, like downsizing your business space or your staff.
Available benefits for employees might change. If you offer employee benefit packages for your staff or take advantage of benefits as an employee, changes in healthcare policies might affect what you can and cannot receive. For example, during this election, the Affordable Care Act (ACF) was a hot topic, with both Trump and Clinton recommending changes to the act if not eliminating it entirely.
If small business owners currently offer the ACF as an employee benefit, they may have to adjust their benefits package depending on what changes are made. Similarly, if more affordable healthcare plans are created in the next four years, businesses that currently do not offer healthcare packages for employees may be able to add healthcare as a benefit.
Securing capital for investments. If you’re looking to expand your business or start a business, you’ll need to secure capital. Securing capital is the process of ensuring funds to cover the operational costs of a business. This includes employee wages, building rent/mortgage payments, utilities, etc. Often people secure capital from banks, credit card advances, and federal or state government loans. Depending on the tax incentives, microloans, and loan policies created or changed by the new administration, it could become harder or easier for small businesses to get the money needed to support their day-to-day functions. Like the effects of tax cuts or tax increases, changes to capital can severely impact a small business.
Regardless of who wins an election, laws, policies, and legislation will change. Even small changes can affect each of us as citizens, especially those who are beauty entrepreneurs or small business owners.
Whether it be a new tax cut or an amendment to a healthcare act, your daily and professional life might be impacted. So what can you do? Be on the lookout for any state or national changes to policies or laws that might affect you or the small business you work for.
Sign-up to get emails from the U.S. Small Business Administration and check in with your local business improvement district or chamber of commerce. Stay in the loop and talk with your fellow small business owners and beauty professionals; together, we’ll be able to handle any changes that may come.