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Recessions are Inevitable. Participation is Optional.

July 14, 2022 | Business Development, Government

Photo by Karolina Grabowska on Pexels: https://www.pexels.com/photo/man-with-laptop-on-desk-terrified-by-stock-market-chart-5717791/

You’ve likely seen news reports about a looming recession. While no one knows when it will start, be at its worst, or subside, one thing is certain: recessions are cyclical and they won’t last forever–just as economic booms don’t last forever.

During these trying times, emotion can take precedence over reason and lead to bad decisions. It’s important, therefore, to remember that recessions may be inevitable, but participation is completely optional. As the past has shown, many will just accept it for what it is, instead of considering creative ways to overcome obstacles. Avoiding inertia begins by simply pledging not to participate in the next recession–or subsequent ones–in unproductive ways. 

Ultimately, the best way to adapt to changing economic circumstances is to take a different approach–and one of the best changes you can make is adopting a government business strategy. Some of the most successful companies in the world embrace this approach, including 49 of the Fortune 100 companies that did at least $1M worth of business with the Federal government in 2021. The top 10 government contractors in the Fortune 100 received over $127 Billion in contract awards. These are not grant dollars or direct loans. These dollars represent the exchange of money for goods or services. 

Small businesses may not be able to relate to the Fortune 100, but government business isn’t just for large corporations. Of the $636B awarded to companies in 2021, over $48B was awarded to small businesses. And some government agencies mandate awarding as much as 65% of their contracting dollars to small business concerns. This includes most of our clients. While executing a successful government business strategy takes time and money, revenue from these sources tends to be more steady and sometimes even increases during recessions. 

We understand not everyone is ready to jump in head first. With that in mind, we have solutions for everyone no matter what stage they see themselves in. To learn more, schedule a 30-minute consultation with me via Calendly. I’ll help you understand how to move your government business strategy forward, so you can “opt out” of any future economic downturns. 

 


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quoteMark

MYTH: Since the amount of goods and services the government buys is not affected by a economic downturn as private industry, the best time to begin selling to the government is during a recession.

FACT: Developing an effective government business development strategy usually takes years. Waiting until the economy is in recession to pull the trigger on a plan can doom it from the start as this strategy takes time and resources to develop….items that seem to be more scarce when the economy is in a downturn.

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