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There was a lot written about sequestration earlier this year, including a lot of panic that sequestration would all but shut down the government and our economy would crash. Well it seems that the economy did not crash and the government did not shut down. The news lately has died down relative to sequestration being a doomsday scenario. I think most of what we see today is "blaming" the loss of a program or government activity on the sequestration actions here and there but not the mass hysteria of earlier in the year. So what really happened with sequestration and what will the effects really be? I have recently read a couple of good articles that seem to have a handle on what is actually transpiring with respect to sequestration. In short, the impact is slow to see the actual results of the actions. We have seen some impact but the impact may grow over time, especially if sequestration continues into FY2014 and further.
The other day I talked about how there could be a lot of funding released in the next 3 months. I think there is some evidence already of this activity beginning. For instance, in the last week the US Army announced they have issued a 5 year multiple award contract totaling up to $7B. There were 8 companies chosen and now each of these companies can compete for task orders under the multiple award agreement. Granted, this is not yet a release of funds (until one of the 8 wins the first task order) but it shows that things are starting to happen. Here is a sample of other announced major awards from the last several weeks:
I have had several discussions recently with small businesses that are concerned with finding ways to fund their small business. Anyone that has started a business knows that certainly is one of the major concerns with starting a new business. But to someone new to this field, it can be a very frustrating exercise. Many people assume that the funding has to come from an independently wealthy founder. While this is certainly a way that some companies are founded but by no means is this the only way. This is part of what is affectionately known as one of the 4 F's for financing an early stage business (Founder, Friends, Family and Fools). Countless businesses are started with one or more of the 4 F's. Most of the time, this type of funding is only sufficient to get the firm started or only take the firm to a certain size. Relying on this type of financing will almost certainly limit the ultimate size of the organization.