Monday, October 7, 2013

Government Slimdown? How the impasse has affected Small Businesses

Whatever side of the aisle you are on, the current Government shutdown/slimdown has affected us all in some way, shape, or form.  Be it directly as in income, indirectly, or emotionally, to take a phrase from the movie Campaign:  It is a Mess!

A current poll of a 100 small business owners states that 46% have felt a financial impact of the government unrest, and that if this drags on further, they can expect a 20% loss in revenue - not good for any Small Biz owner.

And for those in the event and catering business, the Mess (I believe we can definitely call it that..) has hurt business in relation to site planning, etc.  So what does this mean to other businesses?

Any business that caters to government contracts will have a significant impact - be it direct revenue or lag time in responsiveness.  Financial firms, hospitality organizations, food distributors - all will have some sort of a dip in their business.  The longer this continues, the more unrest and uncertainty will hit the market, leading to companies holding back on spend - which will in turn affect every facet of the Economy.

So small business owners - what is there to do?  Yes, there is the waiting game for Congress to come to its senses, but we all have to also diversify our client base - and spread the risk, so to speak.  Just like our 401K's, our client base needs to be widespread!

For more on this poll, click Here

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