Here at Wealth Factory, we believe small businesses are the heart and soul of a strong, vibrant economy.
It’s why we devote so much time showing business owners how to protect, expand, and enjoy the wealth they create from their entrepreneurial activities.
With Donald Trump as the new president, there will be many challenges for everyone. We get that.
But today we focus only on a small portion of the coming change…
Because understanding — and preparing — for these specific new rules for small business owners gives you an enormous advantage for huge financial gain over the next few years.
The Story
Campaign priorities can certainly change before a president-elect takes office.
But it’s safe to say that Trump’s plan for his first 100 days in office is a good place to start when trying to figure out what those changes are, how soon to expect them, and what the impact might be.
His proposed plan is broad and covers social, economic and global issues.
While they all deserve sober analysis, today we’re only focusing on the economic issues that affect you as a small business owner.
Key Details
Here are three key parts of Trump’s economic plan that specifically affect small business owners:
Less regulation on certain business activities. His plan is to eliminate red tape and speed up production to spur economic growth. Of course, there are always side effects to deregulation, and most of his proposals will be hotly debated and likely toned down. However, if your business benefits from any of the less controversial deregulation proposals, it could mean huge windfalls for you.
Incentives to use cash instead of debt. Corporations have been hoarding cash for the last 8-10 years. And they are incentivized to borrow money. Trump wants to get corporations to use their cash to spur the economy. The idea is to let companies write off large purchases immediately instead of depreciating them over 39 years. The caveat? If they do that, they can’t write off any interest on loans. This is to incentivize companies to use the $2 trillion in hoarded cash reserves instead of relying on new debt.
Simplified taxes. This is the biggest area for small business owners to pay attention to. We already gave you a bird’s eye view of the coming tax changes here. Trump’s plan includes lowering the business tax rate to 15%. This would apply even to pass-through corporations (like S-Corps, which many small business owners already use). By generating most or all of your personal income from a business, you can lower your tax rate from 33% to 15%. This article contains a good section explaining the new tax changes small business owners can expect.
The Bigger Picture
There is still a lot of uncertainty about Trump’s plan, how aggressively he’ll try to push his agenda, and how the world (or the economy) will respond.
In our Special Election Edition, we covered many of those issues and their broader implications.
The key for small business owners will be to get as financially strong as possible, create as much cash flow as possible, and focus your attention on growing your business instead of investing in other things outside your control.
When you do this right, we know that you can retire wealthy in your business in as little as 3-7 years, because that’s exactly what we help small business owners do in our tuition-based curriculums and high-end financial coaching.
Winners and Losers
Winners will include:
- Anyone who builds up their liquidity (having lots of available cash) so they can make large purchases without depending on an outside loan (Cash Flow Banking is perfect for this)
- Those who have a strong financial team to guide them through all the changes, steer them toward opportunities that match their Investor DNA, and help them craft a tax plan for maximum benefit
- Entrepreneurial-minded people who have a cash-flowing business, either as their primary source of income or as a supplement. Small businesses could become the best tax shelter opportunity of our lifetime
Losers will be those who don’t stay on high alert.
Why? Well, there are still serious economic issues on the horizon that won’t go away. These were going to be with us no matter who won the election. They involve rising interest rates, inflation, huge debt loads, federal deficits, and a host of other critical topics.
Also, anyone who chases after the many “fool’s gold” opportunities likely to pop up in the coming months and years which take them outside of their Investor DNA are likely to lose.
There are plenty of ways to create significant new wealth within your own business just by focusing on what you know best.
What To Do Next
Here’s a 3-step action plan to help you get ready for a Trump presidency:
- Get informed. Changes are coming. Those who are aware and prepared will win. Use the linked resources in this article as a starting point. And if you’re unsure your current investments are aligned with your Investor DNA, here’s a simple Investment Scorecard you can use.
- Schedule meetings with your wealth team. Make necessary plans to protect and position yourself for the changes ahead. If you don’t have a wealth team, consider assembling one, since that will be one of your biggest wins. No one builds wealth alone, and no one person or advisor can see every angle. Teamwork is critical, especially in times of change.
- Focus on your business. You are your greatest wealth-creator and no President or policy can change that. In fact, Garrett is hosting a special webinar this coming Thursday to show how you can tap into the massive wealth creation potential locked inside your business. We’ll be sending out registration details early in the week, so stay tuned!
That’s it for this week.
Build the life you love,
The Builders at Wealth Factory
What is Living Wealthy Weekly?
Each week we share timely trends, news stories, and current events that affect your life. We help you see the impact, personally and socially, and give you possible solutions to avoid any negative effects. We also give you additional links and resources if you want to investigate further. The purpose is not to be the last word on any topic. Rather it’s to help us all stay informed of what’s going on in the world without letting those events negatively impact your lifestyle. Our goal is to help us all live richer, fuller lives from a position of financial strength. This allows you to weather economic hard times, and seize whatever new opportunities arise in our changing world.
