On November 8, 2016, the American public did what seemed like the most unlikely thing it could do and voted a billionaire with no political experience into the White House. With real estate investor Donald Trump prepared to be sworn in as the 45th President of the United States on January 20, 2017, a lot of business owners are wondering what Trump's changes could mean for their businesses. Depending on what your business does, the answers could encourage you or make you think it is time to start closing your doors.
Donald Trump has proposed tax cuts and government programs that will reduce how much the federal government has to spend. It is estimated that around $6 billion will be slashed from the federal budget each year, and that money will probably come out of programs administered by federal contractors. If your business currently relies on government contracting as a major way to generate revenue, then it may be time to find a new line of work.
Donald Trump's rhetoric on the campaign trail was venomous when it came to trade with Mexico and China. Many economic experts fear that the actions Trump will take, including creating a new 45 percent trade tariff on all of China's incoming goods, will launch a trade war with China that the United States is ill-equipped to win. Either way, if you currently do business with China or Mexico, you may want to start finding customer or suppliers in other countries as of January 20, 2017.
While many states have been adopting $15 per hour minimum wage laws, there has been pressure on the federal government to do the same thing. President Obama indicated that he would consider raising the minimum wage to $15 per hour, but Donald Trump has made it clear that $10 per hour is as high as he is willing to go.
If your business is involved in alternative energy such as solar or wind energy, then you will probably see a lot of the financial assistance you were getting from the federal government disappear. Donald Trump has indicated that he is more interested in investing in fuel resources such as coal and oil found in the United States, and plans to all but discontinue American investment in alternative fuels.
If you rely on legal immigrant labor to generate revenue, then you have probably been using the H-1B visa program to bring in the workers you need. Donald Trump has vowed to tighten up that program and require that an American worker be hired before even allowing an H-1B application to be submitted.
Whether you like Donald Trump or not, the one certain thing is that change is coming for all American businesses. Whether it is good change or bad change depends on what policies a President Trump will change or create, and how those new policies affect your business. While a president who says that he is bent on restoring the working middle class in the United States sounds like a great idea, the way that president goes about putting people back to work will dictate how much of a success his ideas will be.