How Small Businesses can Prepare for the Changing Economy

For the most part, owning a Small Business under President Trump has proven to be uneventful. There are several bills that he has pushed that have made little impact on trade for small businesses. The halting of the TPP has been good for retaining American-based jobs, but the initial talk against China had many in imports/exports a little shaken.

While he has tried many things and failed, it is clear that he intends to reshape the economy. What does this mean for small businesses and how can they prepare for the changing economy?

changing economyWhat We Should Expect from the Changing Economy

Small Business Tax Rate Cut – One of the most recent plans that the President has wanted to enact is to cut the small business rate from 39% to 15%. This is a great initiative because it could free up a lot of taxed capital that we have been writing about how to prepare for during tax season.

Corporate Tax Rate Cut – The President has also suggested cutting corporate tax cuts the same way. This has been spoken about numerous times over the last few years as ‘trickle down economics.’

How Small Businesses Should Prepare for the Changing Economy

prepare for changeThe Immediate Impact of the Tax Cuts – The immediate tax rate cuts will be great for small business owners because they will have access to more capital, which lets them invest in their businesses. However, it also means that the big corporate competition has just as much of an advantage and more capital to play with as well.

How to Prepare for Corporate Tax Cuts – First, do not make any moves until laws are passed. Acting on speculation can leave you unprepared, should the President’s plans not move forward. To maximize the benefit from any tax cuts, while also competing against large corporations in similar trades, business owners should aim to join social media movements, such as ‘buy local’ or ‘local economy’ as well as invest in marketing and developing new income streams.

The Speculated Impacts on the Economy – Where more money is freed up for business entities, capital will need to be taken from somewhere else. Ultimately, the money that would be invested in the economy for public works and government jobs will go away, which means that certain governmental entities may go away. This could impact local economies as more people will be forced to spend money on necessities. It’s important to note that while you will receive more money from your taxes, it could also impact the customer base that purchases your products. Business owners should take proper preventative measures, such as paying bills ahead of time and taking care of overhead expenses.

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