Welcome to the Small Business Run Down. Each day, we bring you stories that impact small business owners and their workforce.
Today marks the start of National Veteran’s Small Business Week. It’s also the day before election day, which means the 2020 Presidential Election is only a year away — what does this mean for Small Biz Stakeholders? And speaking of elections, Californians want to put the “ABC test” on the ballot.
Selling your small business? Don’t hold out for your asking price
The market for buying and selling small businesses cooled even further in the third quarter, according to a report released today. Tariff wars and the threat of a looming recession have give some buyers pause over concerns about decreased profitability, while sellers are weighing their options and asking if they should hold out for their asking price.
The Number: 3.3% Asking prices for small businesses rose by 3.3% over this time last year, though owners report accepting lower offers than desired to complete the sale.
The Quote: “If they’re savvy, they realize it does not make sense to hold on for the best price.”
Small Biz Stakeholders have big impact when it comes to elections
When it comes to crafting campaign strategy, presidential candidates would be wise to look at the impact that Main Street small businesses had on the 2016 election. Despite struggling in national polls, the numbers indicate that President Trump still “buoyed by a strong economy” and competitive in several key swing states — indicating that for small business owners, and their employees, it really is about the economy.
The Number: 17. Main Street small business rate President Trump’s performance 17 points hire than the national average.
The Quote: “A year from now, if Trump is still underwater in national polls but sustains the same advantage with small business stakeholders, even discounting this cohort by two-thirds, Main Street firms will deliver the election for him. Again.”
Gig employers back ABC test ballot initiative
Lyft, Uber, Instacart and other high-profile players in the gig economy are backing a California ballot initiative that would allow certain workers to continue as independent contractors. The effort comes after a recent mandate to classify these workers as “employees” instead of contractors, effective January 1, 2020. Organizer of the initiative must gather a million signatures.
The Number: 120%. The ballot initiate calls for a “net earnings floor” which would be set at 120% of the state or federal minimum wage, whichever is higher.
The Quote: “This ballot measure is going to be a win-win. Not only do drivers get to keep our flexible schedules, but we also get new benefits like healthcare and more earnings potential. I’m a stay at home dad. I do things with my kids during the day and drive in the evening. Being able to have that flexibility and being able to drive how I want to drive really helps me and my family.”