Though we typically think of sequestration as a government problem caused by a “poison pill” approach to resolving Federal deficit spending, its potential impact on business owners could be devastating. Mainstream Management’s Laurie Brunner discusses the negative effects these unstructured cuts will have on economic growth, if a resolution is not achieved.
For small to mid-sized business owners, especially government contractors, the threat of sequestration creates several uncertainties. Massive cuts to Department of Defense spending will mean significant growth risk to those businesses serving the military. To overcome these challenges, business owners must focus on what they do best and consider the additional markets they can reach. This eliminates the risk of having all “eggs in one basket.” Having diversified clientele will carry businesses through uncertain times.
According to Brunner, coping with sequestration gives business leaders the opportunity to “be bold, take advantage of it, invest, and think broader and innovatively about not only their services, but the markets to which they are providing products.”