When it comes to the effects the sequester can have on your business, your bottom line won’t be affected by who started it, who is responsible for it, who should have negotiated and who shouldn’t have (though this may or may not influence your voting choices in the next elections). What matters to the bottom line in your business is how the budget cuts can change the way your company operates. To help you not only wade through the proliferation of blame-game news reports, but also to help you plan for the future (or adjust your pre-existing plans as necessary), we’re providing you with some resources that outline some of the changes the sequester either has caused or will cause.
1. What gets cut and what doesn’t? This article presents a graph of the categorized cuts, as well as specifically listing some of the agencies that will feel the cuts (such as the FDA and the SEC, who, together, will see over $275B in cuts).
2. How will Defense-related Small Businesses be affected? This video outlines what you can expect if your business serves the defense industry, which can include not only weapons and materials production but also technological development as well. In total, 8% of the Pentagon’s budget is due to be sliced.
3. What about the SBA? The SBA, or Small Business Administration, is set to cut nearly seventeen million dollars from its budget. This will likely affect loans, small business jobs, government contracts, fraud prevention, monitoring, and support to entrepreneur communities.
Change is inevitable and while it may present some additional challenges, the sequester isn’t doom and gloom–unlike so many media outlets, we’re not trying to create fear. However, the best way to maximize your business’ potential is to remain flexible, and to plan. That might sound contradictory as a plan would be a set path, but by revisiting your plans for this year and the next few, you can avoid a negative impact from the sequester.