The president sent his budget to Congress on Monday, and despite the media attention, its passing in its entirety is very unlikely. “Dead on arrival,” declared some Republicans, which doesn’t exactly seem like a warm embrace.
The Republicans plan to submit their own budget early this spring and the hope, nave as this may sound, is that both parties will ultimately compromise on a deal. And a deal would include some of the president’s proposals.
If you’re running a small business, the trick is following the money. Because, depending on what’s agreed on, there will be opportunities for you. And when it comes to making money, the smart business owners I know put their politics aside and do what’s best for their companies and the people who rely on them.
So where can you profit from the president’s budget? Here are a few things to consider.
1. Defense and construction
The president wants to spend about 7 percent beyond previously agreed-upon sequestration cuts and increase military spending by about $38 billion. In addition, he wants a $478 billion investment in infrastructure. His proposals, particularly on defense expenditures, have bi-partisan approval. And keep in mind that, like all government spending, it could take months or even years before any approval in spending turns into actual contracts and cash payments. If you’re in the defense or construction industries your antenna should be raised. Have you considered going through the process of being a government contractor? Is your business female-owned or minority-owned? If not, then do you have customers that do business with the government? Do you foresee them benefiting from these expenditures, and is it worth you taking steps to work closer with them? We’re talking billions of dollars here–not just for those in the industry, but those serving the industry.
2. Education and childcare
Similar to defense and construction, the president is appealing to his base through tax incentives, particularly increasing the earned income tax credit and tripling the current childcare tax credit for working families. This means that these families will be incentivized to spend more on childcare and educational services. In addition, he’s proposing billions in spending on education initiatives, more money for organizations like Head Start and a program to help more people go to community college. Again, it’s questionable how many, if any, of these initiatives will make it through Congress. But for small businesses and non-profits in education services or indirectly serving this industry (training, certification, outsourcing, supplies, technology, real estate, maintenance, transportation, food preparation, etc.) there could be a significant potential for business growth. Like defense and construction, you don’t have to be doing business with the government here–just targeting those customers that will benefit the most from the government’s spending plans and marketing to them.
Read more at INC.