Signs are pointing to a potential federal government shutdown in October 2023 due to a lapse in government funding. While Congress is trying this week to pass a stop-gap temporary funding measure to keep the federal government open, the clock is ticking as we approach the end of the federal fiscal year.
As Congress works toward a solution, here’s what small businesses may want to do right now to prepare, plus some vital resources to carry you through this uncertain time.
How might a federal government shutdown affect small businesses?
As a federal agency, the Small Business Administration (SBA) could be impacted by a shutdown, which potentially can restrict access to capital for small businesses. In accordance with the agency’s most recent contingency plan, in the event of a shutdown, the SBA stops approving and processing new loans for many of its loan programs including 7(a) and the microloan program. Disaster assistance funding, however, would still move forward under this plan as well as Economic Injury Disaster Loans (EIDL). For a full list of impacted programs and services, you may want to read the Agency’s most recent contingency plan.
A government shutdown may also impact the regulatory federal offices small businesses rely on to obtain the certifications and approvals they need to operate. And employers hoping to hire new employees could hit a snag as they lose access to E-Verify, a federal internet-based system that determines employee eligibility to work in the United States.
Where can small businesses find information about a potential shutdown and resources for relief?
- The Office of Management and Budget: Frequently Asked Questions
- The Small Business Administration: Contingency Plan for a Government Shutdown
- US Chamber of Commerce: Memo to chamber members on a potential extended government shutdown
- America’s Small Business Development Centers
What can small business owners do right now?
If you are worried about a government shutdown potentially hurting your business, a few precautionary measures could help you feel more prepared. Remember, the situation is very fluid as both chambers of Congress continue to negotiate a short-term spending measure with the goal of avoiding a shutdown.
Collect on outstanding invoices
Collecting on any outstanding invoices can give your cash flow the boost it needs to survive a shutdown. Do this as soon as possible to avoid a situation where your clients can’t pay. Here are 20 tips to get paid faster.
Reduce overhead costs
Pause or eliminate unnecessary expenses so you can direct your cash flow to the things that matter most, like your employees. Here are 14 ways to reduce operating costs.
Build a cash reserve
It’s never too late to start saving for a rainy day. Set a monthly savings goal and treat it as a non-negotiable. Then, create strict guidelines for tapping into your reserve. Here are some tips for building a business cash reserve in a pinch.
Take out a private loan
Long-term SBA loans may not be an option in the event of a shutdown, but a short-term private business loan can help if you run into trouble. Here’s everything you need to know about small business loans.
Talk to your vendors
If you find yourself unable to pay your bills for any reason, explain the situation to your vendors and ask to work out a payment plan. They may be willing to accommodate. Here’s your guide to working with vendors and suppliers.
This article originally appeared on the Quickbooks Resource Center and was syndicated by MediaFeed.
It’s hard to believe that I just passed 10 years as an entrepreneur. As we’ve grown at Content Marketing Institute, I’ve leaned on many critical resources, and I keep them pinned to my office wall—such as Mark Fletcher’s 15 Startup Commandments, Dharmesh Shah’s Startup Triplets and Fast Company’s 10 Common Mistakes Startups Make.
Although it’s hard to clearly identify what success factors have been the most critical during our journey on “the road less traveled,” here are the ones that I believe have made the most impact on me, our company, our amazing employees and — most of all — our valued customers.
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Content marketing works. We have tremendous flexibility in our business model simply because we deliver valuable and compelling industry information to our customers and prospects. Our daily updates, our weekly e-newsletters, our quarterly magazine and our annual research all help to position us as the go-to resource for content marketing information. Without all this, I cannot imagine how difficult it would be to grow our business, not to mention the sheer cost of sales.
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Although our people are some of the leading experts in the entire industry, we hire first based on attitude and flexibility. People with great attitudes who are fun to work with can learn and do just about anything.
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We tell all our employees the following: “Do what you have to do to be successful. Don’t wait for permission. Ask for forgiveness later.” Whether this is a solid policy or not, it allows our employees to take risks and become leaders.
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I cannot express how critical this is. If you partner with anyone, plan that someday the divorce will happen.
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In my experience, most partnerships simply don’t work and can hamper the creativity of the organization. Just be careful.
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One of our advantages is that we are willing to try anything if we believe in what it can provide for our customers, or if we believe that we can gain a competitive advantage. We reach decisions quickly and change these decisions slowly if and when they are changed (hat tip to Napoleon Hill).
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I saw this statement in a tattoo on former Kansas basketball player Thomas Robinson’s arm, and I couldn’t agree more. There were moments when I didn’t believe the business was going to make it. Looking back, it was those moments that have defined our organization.
“I’m no longer afraid of failure, but keenly aware of what new opportunities arise because of it.”
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This almost cost us the entire business. Although my first startup, Junta42, was working and profitable, we weren’t growing the business at a rate that was acceptable. But Junta42 was my baby, and although I knew it needed to evolve, it took everything I had to pivot the business in a new direction. Discarding the product we began the business with was the best business decision—and the hardest one—I ever made.
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Never do any of this yourself. Hire professionals.
Related: Know how sales taxes are affecting your bottom line? Check out our sales tax calculator.
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If the numbers are right, but your gut feels differently, go with your gut — every time. This little piece of advice has served me well.
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The majority of my friends thought I was crazy for leaving a high-paying executive job to start a business. Again, go with your gut.
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How can you be the leading expert in your industry without a book? Honestly, I’m not sure. Write the book for your industry, and it will become the greatest business card you’ll ever have. It will also lead to amazing speaking opportunities that you would never get without the book in hand.
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When you are a micro-sized business, you can afford to try a little bit of everything. That’s perfectly okay. But once you get to a point where the business model is fleshing itself out, then you need laser focus.
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It is your responsibility to know the influencers in your industry who can help make or break your business. Once you identify those people, you need to be sharing their content on a consistent basis, whether that’s through Facebook, Twitter or building lists to post on your blog. The more unsolicited gifts of content you can give, the more others will return the favor, helping to build your business into the future.
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If you wake up in the morning and you aren’t excited about going to work, something is wrong with your business. The last eight years have been an amazing experience that can only happen to someone who has launched a business. I find myself in the unique place of not wanting for anything in life.
For more help on finding startup success, check out our step-by-step guide to starting a business.
This article originally appeared on the Quickbooks Resource Center and was syndicated by MediaFeed.org.
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Featured Image Credit: DepositPhotos.com.
