Fundamental Steps for Business Leaders During an Election Year
We are quickly reaching the mid-point of an election year. Election years typically bring in their own level of uncertainty for business leaders. This year’s uncertainty with the ongoing COVID-19 pandemic has already complicated business operations, and now business leaders are coping with the uncertainty around potential policy and regulation changes for industries in relation to candidates’ four-year agendas and international relations.
Business leaders must be prepared for such potential changes. We are recommending some fundamental steps to take to best be prepared for election outcomes and the policy and regulation changes that might follow.
Be Aware of Your Current Industry Environment
It is imperative to have a thorough understanding of the existing policies and regulations that have changed and effected your industry. For example, how have the most recent modifications to trade agreements and international relations affected your business operations? Will incumbent candidates be looking to overhaul recent regulations which affect your business to align with their political stance and 4-year agendas for the United States? Although most of your recent attention has been attuned to the unprecedented repercussions of the pandemic, it is also important to take time now to review your industry’s existing regulations and those of your current target market. As a business leader, it is important to have a thorough awareness of and the foresight for potential changes with the following:
- Existing policy and regulation per industry
- Operational mandates
- Safety regulations
- Environmental oversight
- Pending industry modifications within the third and fourth quarters
- Purchasing and spending forecasts for the remainder of 2020
Stay Informed
Research candidates, their positions, and their proposed four-year agendas for the country. Be aware of their proposed policy changes, regulation overhauls, and international positioning. Develop a good understanding of their stance on industry issues which directly affect your business. If the candidate is a career politician, you’ll be able to find information on how they’ve voted in the past and what positions they took on relevant topics. Use this information to estimate how much of your business will be impacted by any changes they intend to make so you can prepare.
Determine Scenarios
Forecast scenarios for each candidate. Determine what potentially will change within the first 6-months, 1-year, 2-years, and 4-years for each elected position. Plan for both the best-case scenario and the worst. Do an evaluation of how each of those scenarios would affect your business and its ability to rebound from the COVID-19 pandemic. Industry regulations, policies, and political stances affect daily business operations, overarching regulations of business conduct, international trade, funding, and B2C and B2B purchasing. It is necessary to predict business and industry pivots now to be prepared to sustain operations over the next four years.
Plan a Response
Now that the research and analysis of your industry have been completed, take time to consider what adaptations and responses will be necessary for your business to comply with changed policies, regulations, and international relations. Prepare an operational contingency plan for these potential changes after the election.
These proactive steps will help your business to be better prepared for any outcome this election year. Having a plan and being prepared is the best way to stay nimble. Being able to adapt and pivot quickly is a key determiner for your business to stay profitable and successful.