If you are engaged in the federal marketplace, you undoubtedly follow each and every Executive Order as it is unveiled, especially as it pertains to the budget and federal spending. Follow the money, and you will find where the opportunities lie. There is a lot of information out about the current administration’s agenda and where we can likely see the majority of the funding. A continuing resolution is in effect, so it is important to implement plans to carry on.
If you are a tenured government contractor, you have been through countless continuing resolutions and government shutdowns that have provided similar disruptions to your normal day-to-day process of doing business. Aside from contract termination, you have likely dealt with the hurry-up-and-wait syndrome so prevalent in this market, so you already have plans in place to sustain through times of uncertainty.
Billing cycle delays are a real issue here, mostly due to the cost of continuing to work, continuing with the need to pay your employees while not getting invoices paid. This is where having a solid financial plan and a lending partner is crucial. Even tenured businesses lack in this area sometimes because it isn’t something they account for when making business plans and filling their pipelines. The priority is only focused on opportunities to bring money in and not on mitigating the money that may have to go out while nothing more is coming in.
New businesses typically have a cash flow issue from the start, so delays like this can be catastrophic. Having a financial plan before a business development strategy will allow for long-term viewpoints on what to do when delays occur. But this is hard to plan for those who are new and unaware that issues like this arise. Point being? If you aren’t experienced in the ebb and flow of the federal marketplace, your plan should be to surround yourself with people in the know who can consult with you and guide you down the path toward continued opportunities rather than feed into unnecessary doomsday scenario speculation.
More established and larger businesses recognize the need for cash flow controls and implement processes that mitigate the risk. Emerging and smaller businesses aren’t always quick to see the need for this until there is an issue, so then it is crisis aversion mode instead of proactive control of your cash in and cash out. Small and growing businesses should take note of how big businesses run and modify their internal strategies and use that model to suit the smaller operation. It is easier to lean into the growth you’ve earned when you have managed your internal processes regarding cash flow efficiently from the start. The alternative is just winging it for too long to get by. Then you find yourself trying to transition into a well-oiled machine when growth arrives. At that point, growth feels like it’s breathing down your neck like a threat instead of being the reward for your hard work.
Because small businesses can pivot and adjust in times of change, they will see a lot of growing opportunity as the government is shrinking and private businesses are given the chance to step in and step up. The small businesses that succeed long term will have better internal processes and procedures supporting their capabilities that enhance their ability to grow, as well as access to the resources they need to do so efficiently.