In the 50-plus days since President Donald Trump returned to the White House, his administration has announced wide-ranging policy changes—from tariffs to immigration and beyond.
The “chaos” from the early months of the Trump administration is creating uncertainty for the 1.5 million small business owners that Hello Alice serves with its free digital platform, according to Carolyn Rodz, cofounder and CEO. Even though there’s a lot of confusion about how these policies will impact small business, Rodz advises against having a wait-and-see attitude.
“That’s probably the most dangerous approach an entrepreneur can take,” Rodz said Sunday during a discussion at the Fast Company Grill at SXSW. Instead, she encouraged entrepreneurs to be proactive. “A lot of the guidance that we’re providing is: Prepare for today, but have a plan B and have a plan C—and I think it’s smart in any environment, but more so today.”
UNDERSTAND UNIT ECONOMICS
In light of the tariffs President Trump has already imposed on some of our trade partners—and more that he’s threatened—Rodz said entrepreneurs should seek out alternatives for sourcing products if they’re importing from countries “on the hot seat.” And it’s important that small business owners understand their unit economics, she said, because that will inform how they prioritize their business needs. “Does a shift in tariffs tomorrow all of a sudden shatter your unit economics? If it shatters your unit economics, you better start thinking about that today.”
Even if higher costs ultimately must be passed along to consumers, Rodz said it’s very important to communicate to customers why prices are going up.
“Be really transparent with your customer base,” Rodz advised small business owners in the audience. “If people understand the why, they’re going to be much more likely to stick with your company and see you through the change.”
A LOT OF UNKNOWNS
But the administration’s stance on immigration, for example, is creating “a lot of unknowns,” which is causing small business owners to freeze up rather than take action, Rodz said. Once again, she recommended getting a head start on establishing a stable workforce and building programs for employee loyalty and talent acquisition.
“Really think through what those processes look like for your specific industry and business so that you’re prepared to find the best talent that you can find, independent of what the political situation looks like,” Rodz advised small business owners.
Another area where Rodz has seen businesses—especially corporations—become afraid is with respect to diversity, equity and inclusion (DEI) efforts. “They’re afraid to move,” she said. “There is a great fear of the public backlash on either side of their move.”
Hello Alice has firsthand experience with DEI backlash. In 2023, it was sued by America First Legal over a program that offered $25,000 grants to Black-owned businesses. The Trump-aligned organization, which is backed by Stephen Miller, then longtime Trump advisor, now White House deputy chief of staff, claimed racial discrimination.
Even though a judge ruled against Miller in favor of Hello Alice in May 2024, the company’s million-dollar legal battles continue. “We’re a small company and we’re a very nimble company, and so we’ve been able to actually fight this fight longer than many of the large corporations with massive pocketbooks around us have,” Rodz said.
While other companies have settled similar lawsuits, Rodz said Hello Alice will continue to push as far as it can because it’s important to find ways to ensure that everyone feels they’re getting a fair shot. “At the end of the day, it’s figuring out how do we operate in the environment that we’re in today and still offer the resources and needs and fulfill the needs of what is clearly an economic gap that the status quo won’t solve.”
OPTIMISM AND SILVER LININGS
Despite all of the uncertainty of recent months, small business owners remain largely optimistic, Rodz said, adding that surveys show more than 60% of Hello Alice’s users are confident or highly confident that the future will be better than today—a share that doesn’t waver, regardless of politics or the administration in charge. “Small businesses are a really optimistic group.”
And there are some silver linings, like taxes, which could benefit entrepreneurs if President Trump follows through on campaign promises to reduce tax rates and build a simpler tax structure. “Small businesses will stand to benefit if a lot of this policy goes through,” Rodz said.
Staying abreast of the latest news out of Washington, D.C., is difficult for anyone, let alone someone trying to run a business. Hello Alice has always focused on education, but now some of that has shifted to policy changes. Likewise, Rodz said artificial intelligence could be another valuable resource for trusted information—and, more broadly, will give entrepreneurs an advantage in growing their business, which should remain their focus.
“To the degree you can, cut out the noise and focus on the one, two, or three things that you can do today to push your company forward,” Rodz said.
