President Barack Obama was re-elected last night, sweeping the electoral vote 303-206 with Florida still up in the air. Democrats retain control of the U.S. Senate and Republicans kept control of the House of Representatives. In other words, it’s status quo.
Download a Free Chapter:
The Little Black Book of Strategic Planning for Distributors
Submit your email address below to receive a chapter of Brent Grover's new book. When you submit your email you will be signed up to receive weekly distribution news updates.
It’s still too early to say what the impact will be on business. However there are five takeaways from the election now that it’s finally over.
Educate yourself on Obamacare. For companies hoping parts or all of Obamacare would have been repealed had Mitt Romney been elected, it’s now time to move forward and plan for what’s coming next. In Associate Editor Jenel Stelton-Holtmeier’s analysis of The Practical Implications of ‘Obamacare’ on Distributors she outlined some of the steps distributors should take to comply with the law. The most important step is to learn about the changes that are coming.
Move forward on executing your strategy. Many distributors in the last MDM-Baird Distribution Survey reported “election paralysis,” or reluctance to invest in people, facilities or other areas until the election was over. Now that we know what the next four years look like at least on the national level, it’s time to put into place plans for growth. Of course, a lot remains in the air. Brent Grover, author of The Little Black Book of Strategic Planning for Distributors, recommends creating three sets of plans: worst-case, best-case and base-case. This will help you better frame expectations and adapt your plans as conditions change.
Keep an eye on industries that have benefited from President Obama’s first term. As you build a plan for the 12 months, recognize that industries that have benefited from government support, such as alternative energy, will continue to see that support and probably deserve evaluation as potential growth markets for your business.
Prepare for changes in tax rates. According to reports, including this one from the Washington Post the corporate rate will likely fall, but probably not as much as it would have under a Romney administration. But other tax concerns remain and are largely dependent on compromises in Washington. They include increases on investment income, the expiration of the payroll tax holiday and the estate tax.
- Do your homework. “There are a lot of big decisions that are going to have to be made in the next two years,” says Jon Melchi, the director of government affairs for Heating, Airconditioning & Refrigeration Distributors International. “It’s important that people are aware of these decisions and what they might do.”
The election’s completion does not allay many of the concerns many distributors said they had pre-election.
But it does bring a little more certainty into the equation – not to mention a lot fewer political ads. Perhaps with the election over, leaders can get back to leading and the certainty businesses need will edge up as we head into 2013. As both Romney and Obama said in their respective speeches last night, it’s time to come together and fix the problems America has.
What do you think will be the impact of the re-election of President Obama? Or will anything change? Comment below.