What Are You Going To Do When Trump Gets Into the White House?

trumpI have been asked by many of my clients and friends as to how we as a business community are going to survive the next president and his agenda. My normal response has been “What Agenda.”

As the election wound down and Trump won we need to examine what this should mean to all of us and how we should prepare for this transition of power. It is being assumed that we will have a replacement for the current ACA medical insurance, that we will have a roll back on government regulation, and that the country will bounce back into a booming economy.

There have already been some activities that seem to be pushing in this direction. Carrier moved part of its manufacturing facility back to Indiana. Fiat Chrysler plans to invest $1 Billion to retool two factories, one in Ohio and one in Michigan, to build the new Jeep sport utility vehicle. The DOW is hovering close to 20,000 for the first time in its history.

California is so scared of what will happen to its federal subsidy funds that it has hired former Attorney General Eric Holder to “fight” with the new administration. This is unprecedented in our recent history.

The fear of change is real and I believe we can all agree that change is coming. How you intend to handle this is up to you. I would advise you think about the following:

1. Cash flow. It is likely that as soon as the new administration takes over that our citizens will likely have a “sit and watch” mentality. You will need enough cash to see you through about three months of no or slow sales.

2. Vendors. Large vendors are already taking between 60 to 120 days to pay their invoices. This will probably increase as everyone sees what the impact of the new administration is going to be, again, being ready to carry the burden of unpaid invoices form your larger vendors for three to six months.

3. Orders. This is another place where things are likely to decrease. It is too late to try and stock up on your raw materials for the next production season. You may want to consider holding off on any types of equipment purchases until the dust settles and we see how goods and services are being used in the new economy.

4. Employees. You need to come out with a policy of how you are going to weather this storm, and your employees need to know if their jobs are in jeopardy. I know of one company where the leadership has already agreed to a 15% cut in salary if necessary so that they do not have to lay off any employees. They figure this will give them a six month buffer and they also feel that we should have something more solid on which to base decisions by that time.

There is no doubt in anyone’s mind that big changes on many fronts are coming. We are not dealing with a career politician here so he has no reason to try and feather his nest or resumé for his future employment. Keep this in mind as you watch events unfold.

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