How Entrepreneurs Can Profit with Obama

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Smart business owners know that taxes will come down one day. But in the meantime, at least in the next few years, we know it's time to spend to invest, keep taxes low, and prepare our businesses for the next decade. I think we've all learned that investing in the stock market isn't the greatest idea any more. Maybe the guy's right, and we should plow our money back into something we can control.

Take a careful look at employees.

Obama's a big supporter of unions and a worker's freedom to unionize. He's going to change some of Bush's classification rules which will enable more people, formerly classified as supervisors, to become protected by federal labor laws. He's going to be on the side of striking workers. He's going to step up protection of employees who faceworkplace discrimination and encourage flexible work schedules. He's going to raise the minimum wage. And the Family & Medical Leave Act? He's going to expand that, too, to affect businesses from those now employing 50 or more to those that employ 25 or more. Oh…and something's going to happen with health care. I don't know what. But guess who's going to wind up paying? It's going to be good times for workers. Not such great times for employers.

Smart business owners will always need good people. Valuable, hard-working employees working at good small businesses will have job security. But if the costs of employment are going to increase, then we're going to do everything we can to minimize the number of people we employ. Look for a big push for outsourcing. Look for a new rise in subcontractors. Watch us use the remote technology available today and hire people around the country to do those tasks that we formerly had employees do. Watch us be very, very careful about hiring people over the next few years. The incentives for employing people have shrunk. Our motivation to find ways around these rules will be strong.

Have a few drinks with our estate attorney.

Estate taxes will be higher than ever. Where there was once a hope of lowering, or even eliminating estate taxes, an Obama Presidency means death for that idea (sorry, couldn't resist). Obama's estate tax will be 45% of assets over $3.5 million.

Smart business owners will immediately be seeking out their attorneys and learning the nuances of estate and trust laws. Christmas will start early. Gifts will need to be made, and fast. The transfer of assets to children, grandchildren, and significant others is going to be accelerated. The rest of us will just make sure not to die in the next few years.

So, let's face reality. Smart business owners, with a little forward thinking, will prosper during the Obama Presidency. So bring it, baby…bring on the change!

Gene Marks, CPA, is the owner of the Marks Group, which sells customer relationship, service, and financial management tools to small and midsize businesses. Marks is the author of four best-selling small business books and writes the popular "Penny Pincher's Almanac" syndicated column. He frequently speaks to business groups on penny-pinching topics. More penny-pinching advice from Marks can be found at www.quickerbetterwiser.com.