The Presidential Election Business Slowdown: How to Navigate a Period of Inconsistent Sales Performance

If you’re finding it harder than usual to close deals, hit quotas, or keep prospects engaged, you're not alone. Many businesses experience a marked slowdown leading up to a U.S. presidential election. And, with the 2024 election fast approaching, this phenomenon is in full swing. This pre-election business malaise isn’t new—but it does raise important questions about why these slowdowns occur, key dates to watch, and how best to keep your sales momentum going through uncertain times.

Why Does Business Slow Down Before a Presidential Election?

There are several reasons why businesses might press pause before an election:

1. Economic Uncertainty: Many companies hold off on big purchases and investments as they wait to see which way the economic winds will blow. Will new policies favor certain sectors? Will taxes or interest rates rise? These questions often lead to a cautious “wait-and-see” approach.

2. Impact on Financial Markets: Election years can increase stock market volatility as investors react to candidates’ policies and speculate on their potential impact. This can lead companies to temporarily pull back on spending.

3. Geopolitical Implications: Global relationships often shift around U.S. presidential elections, affecting industries reliant on international trade or diplomacy. Companies that might be sensitive to geopolitical changes tend to delay decisions until the election outcome is clear. These are extraordinary times when it comes to geopolitical existential risks. For example, yesterday JPMorgan Chase & Co CEO Jamie Dimon indicated he is worried that “World War III has already begun”.

4. Potential for Policy Overhaul: With different parties often holding distinct views on regulation, energy, healthcare, and trade, businesses that would be significantly impacted by policy shifts (such as manufacturing, finance, and tech) may hold back on deals until they know the likely regulatory landscape.

Key Dates to Watch

Here’s a timeline of dates to keep in mind as we move through the end of 2024 and into early 2025:

• Presidential Election: Tuesday, November 5, 2024

• Thanksgiving: Thursday, November 28, 2024

• Christmas: Wednesday, December 25, 2024

• New Year's Day: Wednesday, January 1, 2025

• Inauguration Day: Monday, January 20, 2025

These key dates create a timeline with potential hurdles to business activity, not only due to the election itself but also because of the holiday season—a time when decision-makers may be harder to reach or less focused on new business.

Will Business Activity Pick Up Immediately After the Election?

Yes and no. Knowing the election outcome will give decision-makers the opportunity to reassess their strategies, and many may quickly pivot based on the result. However, the possibility of extended contention over results or delays in power transition could mean a prolonged period of ambiguity. Even with a clear outcome, businesses may proceed with caution as they assess the impacts of any policy shifts.

Moreover, the holiday season brings its own slowdown, which will overlap with the post-election period. A smooth and timely transition could bring clarity by mid-January 2025, but prolonged ambiguity would add further delays, especially when paired with the usual holiday business cycle.

What Should You Do? To keep deals moving and stay top of mind for prospects, try these strategies:

1. Stay Attentive to Prospects’ Needs: Keep the focus on addressing your clients' and prospects' most immediate concerns. In uncertain times, empathy and understanding go a long way, especially if your offerings help solve pressing business needs.

2. Increase Follow-Up Frequency: As people’s attention may be more scattered, gentle but consistent follow-ups around the holidays and key dates can keep deals alive. Be mindful of timing; the day before a major holiday, for example, is generally not ideal.

3. Maximize Downtime: Take advantage of any lulls to engage in high-value activities. Review your outreach plan, refine your value proposition, and get ahead on strategic planning for 2025. Laying the groundwork now will ensure you’re ready when momentum picks up.

4. Focus on Relationship Building: A slowdown can be an excellent opportunity to reinforce relationships with current clients and build trust with prospects. Taking this time to strengthen your network will pay dividends when things speed up post-election.

Looking Ahead

While the pre-election slowdown might be frustrating, the post-election period offers a unique opportunity to engage with prospects and clients with renewed focus. With thoughtful timing, a steady follow-up plan, and high-value activities, you can turn this slow period into a strategic advantage, positioning yourself for a strong start in 2025.