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Budgeting for 2021- Do You Get December-itis

December starts a very interesting month for those in business. It’s usually the winding-down of a calendar year with holidays, celebrations, and a chance to breathe. This year, as we already know, is one like no other. With less opportunity to party or travel it allows for the time to look ahead, set new goals, budget for the coming year, and plan for new services, products, and opportunities. But where should you start?

Luckily BOOST is seasoned in transitioning to new opportunities and building business from the last notes of Auld Lang Syne all the way through the new year. Here’s what we recommend and a hint: the main theme is Plan for Your Growth.

Budgeting:

What are the things you’ve neglected this year that you wanted to add but didn’t because of “the budget” or more importantly because of 2020? Did you skimp on marketing, hiring, or company culture building activities? Add these into the 2021 budget (if you haven’t already) to help make sure they happen. Also, over-shoot the budget just a little. Give yourself wiggle-room for hiring that stellar BD person or to celebrate new milestones that you didn’t expect to hit just yet.

Hiring:

Growth is good. Growth also means you’ll need to work on delegating some of your, or your team’s tasks to new hires. Where do you find these new hires? Great question. We recommend working with a talent acquisition team that can be dedicated in finding and delivering the best potential fit for your team. Once you’ve welcomed your new hires on day one, don’t forget about the ongoing onboarding process. Solidifying your onboarding processes prior to hiring will help you and your new employees to have a stronger (and more loyal) relationship in the long run.

Partnering:

Let’s talk lawyers, not many people like them, but everyone in business needs them. (We’re exceptionally lucky that our lawyer is amazing and if we like you, we might even share them.) Beef up your legal teams, your outsourced accounting, CPAs, bankers, your IT service professionals, and beyond to pick up the slack in places that you don’t excel. Partnering with companies who can feed you referrals and vice versa will help you to sustain growth and mitigate time spent in researching these areas before it’s a three-alarm-fire for your business. If you need recommendations across the GovCon industry, BOOST can help, just ask. We’ll be happy to make an introduction.

Planning:

Even before the planning stage you’ll need to know where you stand with your current business. Are your books in order for tax season? Do you have an updated HR Manual? How are you reaching and signing most of your clients and customers? Do you have your newly awarded contract roles filled appropriately? Knowing where you currently stand in all areas of your business will help you to plan appropriately for the future in ways you can reach and exceed.

Educating:

If this year has taught us anything, it’s that we don’t know, what we don’t know. Take time to survey the landscape of what your industry is discussing and read up on the pieces that matter, but don’t quite make sense. Do you need ISO or CMMC certifications? Are you adequately maintaining a secure cyber space? Do you need a new accounting system? Join in on conversations, digital events, and information regarding the topics that matter to your business now and the future you’re looking to build.

 

Take some time this month to reassess where you are, where you’re going, and where you’d like to be. BOOST can assist with introductions, assessments, and planning for your growth to help you kick off this next year in the best way possible. Goodbye 2020 (finally), and hello future.

Government 4th Quarter… Who the Heck Knows?

‘Tis the quarter of last-minute proposals, mad scrambles for key personnel, task order bidding, and trying to keep everything straight between whose team you are on and for what.  Add that to trying to manage multiple folks on vacation and everyone suffering from a bit of summer head (i.e. we’d rather be at the beach mentality).  Oh, and COVID… can’t forget work-from-home-forever, COVID.

It’s a time when some folks lose all strategic perspective and go whole-hog into the throwing spaghetti on the wall to see what hits strategy.  What is the difference between 5 proposals or 6 they think?

But….2020.  Need we say more?  Our response to practically everything these days is…2020.
Keeping all of that in mind, what does this government 4th quarter actually look like?

We’re hearing mixed results.  Some folks seem to be business as usual (which means crazy).  Our pricers are busy as are the proposal peeps.  There are a significant number of folks going after 8a STARS right now too.  But some folks are reporting that things seem quiet….eerily quiet.

For those on the quiet side, the question becomes, is there a true lack of opportunities?
Potentially, and here’s why:

  • Everyone is still focused on COVID related acquisitions
  • Money was spent on other priorities (IT infrastructure and/or pandemic related)
  • Acquisition process is slower these days due to remote work
  • Less intel opportunities since everyone is running at 50%
  • Less opportunities that are not on the large GWACs/IDIQ vehicles
  • Category management has effectively become the have and have nots, squeezing small business
  • Lack of access to government officials – everyone’s home, wandering around for snacks, not wandering the halls for business

Whatever the case may be, what’s important is that business owners and business development folks keep on top of the rumors, what they are seeing in their business and talk to their frenemies about their experiences.  Don’t be complacent that what you are seeing or experiencing is the same everywhere in GovCon.  Don’t fall into the trap or get lulled into a significant pause on your growth strategy or BD goals.

Not only do we spout great advice, we take it too. In our conversations with partners and frenemies, we’re continuously gathering new data on trends and gut feelings. Luckily for you, we don’t keep it all under wraps. BOOST is sponsoring the upcoming govmates Institute with Wolf Den & Associates titled, Virtual First: Business Development in a Post-COVID World. This event is free to govmates members. Check out the institute page and apply for a seat at the virtual institute ASAP.

What are you seeing in your line? Head over to our LinkedIn Page and join the conversation about current industry trends and where businesses are going from here.

Top Tips for Choosing an Accounting System

As we discussed previously, accounting implementations are like dentist visits (sorry dental friends), necessary but definitely not fun. Yet, before we get to the implementation part, we have to go through the process of system selection; identifying and choosing the best system for your business.

We’ve compiled what we consider to be the top tips for choosing your new system.

  1. Have a team to evaluate your options.
    The minimum number of systems you should be evaluating for implementation is three. We’ll say that again: Evaluate a minimum of three systems (but probably no more than 5) to find the best fit for your company. This means you will need a team of people from your company who understand your business processes and the nuances of your business needs to take part in the evaluation. The key stakeholders in the decision to implement a new system are:

    • Executive Leadership
    • Accountants
    • Project Managers
    • IT Admin (hosting/software)

Including people from all of these stakeholder categories will ensure that (hopefully) all needs are met when choosing a new system.

  1. Choose an End-to-End system.
    Your accounting system, once implemented, should provide you with visibility, clear reporting, and above all more time spent on BD and other tasks instead of transaction processing. The reasons you’re moving away from your previous systems are typically due to the lack of visibility, lack of streamlined processes, and increased transaction volume. These are not issues you want to bring with you to the new system. We’re looking to ease tensions, reduce integration points, and gain efficiencies through automation of end-to-end transactions.
  2. The user experience should be intuitive.
    End users of the system should be able to navigate within the system without intense training. It should be configured with automated controls that reduce the need for redundancies that manual controls create. While each system has its own way of doing things, for the most part users should feel that the processes they’re using fall in line with their current routines versus creating something completely new.
  3. Choose a system you can configure.
    The best system is one that you can take directly off the shelf and implement with minimal configuration. You’re not looking to redesign or customize a system to fit each piece of your business. Rather, you need something that will fit into the slot and fill the needs that were identified within your previous system. The name of the game here is plug-and-play for the most part. If you’re finding that during your discovery phase, the questions you’re asking are how to change, manipulate, or redesign the system or the system provides solutions for less than 80% of your business, that system probably isn’t the one for you.

Above all, your accounting system should work with and alongside you. In an ideal world, it will be able to grow with you for a time as well. Choosing a new system should not be taken lightly and if your executive and accounting teams need guidance through this process, we would be happy to assist.

At BOOST, we thrive in helping clients to identify needs, find solutions, and get more time out of the system and back into the billable day. We’ll dive deeper into the discussion of Transitioning Systems in our July 7th webinar. Find more information regarding this digital event and register here. If you’re ready to find a new system now, contact our Managed Accounting Experts here.

Staring “New-Normal” in the Face

Are we ready to start talking about “coming back?”  In our humble opinion, regardless of what any politician says, we are not “back” until we can get our kids out of our house (sanity now!), but that’s a whole other story!

Honestly, we’re not sure if its safe yet, or what “coming back” truly looks like, but we do know that there are a ton of things we should be preparing for in the meantime.

Here are a few to get us started.

Employees – First and Foremost.
If they have successfully done their jobs remotely for the past months, first ask if they must come back. Could their jobs be done remotely going forward?  Maybe they just need to come in for a few meetings on site with the customer or a few team meetings.  Assuming you’ve already made the investment in providing access (i.e. laptop, etc.), why not consider making their position remote?

Clients – Partners or Pain?
Your relationship with your government customer and/or your prime is vital to the new path forward.  How often are you communicating with them?  Are you all messaging the same information to the workforce?  Are your policies consistent in how you will handle social distancing on site, providing PPP, sick leave requests, etc.?  Consistent, direct messaging is always best, especially now when nerves are frayed, and rumors are rampant.

New Employees – Recruiting isn’t the same.
Now more than ever we are hiring people via Zoom calls.  Make sure that your recruiting process is standardized so that you aren’t discriminating against potential candidates.  Really work on the questions you will ask (there are a ton of resources currently available). This will help you get the best feel for the candidate and if they will be a good fit for your company.  Make sure your online presence is updated so they can get a feel for you as a business.  Consider extending the interview panel to not just leadership, but peers so the candidate can get a good feel for the organization.  Currently, candidates are reluctant to make a move – for them it’s about the devil you know versus the devil you don’t.  You need to be able to easily convey what your organization stands for and its culture, so candidates feel confident to make the jump.

Office Space – It’s a whole new world.
Depending on your landlord, consider renegotiating your lease.  Look in the contract for any modifications that you need to make to have a more “socially distant” office space.  Gone are the days of 2 or 3 people sharing a cube.  There will be a ton of advice coming out about this, start paying attention to best practices.  Please give up on the idea that everyone must be in the same place at the same time.  Even our intel folks are finding ways to spread out the work, spread out the timing.  This will be the new standard going forward.

There are a million landmines ahead, and we’re pretty sure the lawyers will end up making out as we traverse this new world. But our strongest bet is on common sense and doing what is right will hold up. If you need help navigating this world, give us a shout.

Puzzle Me This

As puzzles are back in vogue these days, I thought this might be of interest. Unfortunately, I’ve only had the opportunity to complete one over the past few weeks, but several themes rang true as I worked on it. Puzzling (is that what we call it?) makes you go through several stages, much like the business circle of life.

At first, puzzles are exciting. You find all the outside pieces, you put the four corners in a special place.

Startups are exciting!
You have a new mission, it’s constantly evolving, you get to make things up as you go along. The world of possibilities is endless.

You compile the outer ring and you start to feel like you can really do this.

You’ve got your first clients.
You are starting to hit your stride on marketing and hiring. You start to fill in some infrastructure. You hire your first BD person, your first C-Suite.

Then, the grind hits. You must keep at the puzzle. What seemed easy 100 pieces ago is suddenly very monotonous (for me, it’s always the sky portion!). The buzz wears off.

Months bleed into years.
Your offerings may change or expand, as does your client base. But the excitement starts to leave and the magnitude of what you want to accomplish and how hard you have to work hits you.

You find yourself trying the same pieces in the same spots, over and over. And they don’t fit. Yet you keep trying, expecting different answers. You find that you can’t see the forest for the trees (or the entire picture for the one area you are working on).

You lose focus on what’s important.
You can get caught up in the tactical, day to day without your eye on the exit plan. You may retain team members that you had from the beginning but no longer fit or they aren’t in the right positions. You know you have to pivot but you aren’t quite sure how. You feel like you are stuck in one place.

Through it all, you keep trudging along and the puzzle slowly comes together. Big chunks get done and you start to feel accomplished. You feel like you are working on the big picture and that there is light at the end of the tunnel. You’ll get stuck a few times, but you know that you will make it through. Pieces that you didn’t think would fit actually do. All it took was a different perspective.

Did you read that? All it took was a different perspective.

Right team in the right places.
Corporate culture that aligns. Everyone is focused on the mission and works together.

Finally, you complete the puzzle. A sense of reward, a sense of accomplishment. In my case, I turn it over to someone else to put it away, not wanting to personally break up what I worked so hard on.

This is different for everyone.
It may be the big sale, it could be a purchase of another company, it could be an ESOP or Management Buy Out. You could decide to step down as the CEO and let someone else run it.

And then you consider your next puzzle.

Or your next opportunity.
Entrepreneurs at heart always have another company they’d like to start or will serve on boards or as advisors for those that want to start their own thing. We are a community that pays it forward.

What stage of the puzzle are you in with your current company? If you’re in the “grind” or “focus” section and you’re looking to get to the next phase we’re poised to help you prep. Change IS coming and preparing for it now is your best course of action. We have virtual support while you need it and on-the-ground professionals when the new-normal resumes. Contact us, and let’s discuss.

Post-COVID | What to Expect and the Future of Business

 

In this expert panel discussion recording, Stephanie Alexander is joined by:

Jim Campbell, President/CEO of AXIM Fringe Solutions Group,
Katie Bilek, SVP at Republic Capital Access and Co-Founder of govmates,
Leslie A. Stout-Tabackman, Attorney at Law, Jackson Lewis P.C., and
Lee Stokes, CEO/Founder of Compliance Services Agency

to discuss what you can expect for the post-COVID future of the GovCon industry.

Distributed Workforce – The Future Is Now

At BOOST we have a strong bench of really intelligent SMEs with knowledge that goes deep into their service areas. Below, you’ll find a note from one of BOOST’s SME CFOs about the future of work and the high-potential for a “new remote-work normal.”

Don writes:

While the COVID-19 pandemic effects are in our constant near-term thinking, one thing it has done is force many employers and customers to look hard at a remote workforce where it was not previously a consideration.  Continuing virus flare-ups until a vaccine is available in the next 12-18 months will cause sporadic work-at-home orders.  Your entire workforce could be whipsawed between the “new normal” and hunkering down at home for 2-4-week intervals over the next year or so.  It might also induce some of your more valuable staff members to choose to permanently work from home as their only option and either force that option on your management team or find another employer who will accept their demands.

This link from the National Bureau of Economic Research is an April 2020 white paper on the impact and possibilities of a remote workforce driven by the COVID-19 pandemic.  The report indicates that by the NBER’s criteria, approximately 34% of the total national workforce could work remotely.  Additionally, the Washington, DC metropolitan area is second only to Silicon Valley in the percentage of total workforce and the labor-dollar-weighted workforce that could work remotely at 46% and 61%, respectively.

In my opinion, this shock to the economy and workforce will require many to seriously reconsider the possibilities of a remote workforce for your staff and customers.  While your management team is working the near-term issues of solving staff assignments, product deliveries, customer expectations, profitability, and cash flow, it’s not too soon to begin planning out how your own leadership principles, company culture, and facilities can all be maximized to get ahead of the curve – which, I believe, is surely coming.  A series of questions like the following can help crystallize your team to focus on the mid to long-term issues:

• Which staff assignments truly “require” our company staff to be at a customer or company location over the long term?

• If our staff assignments are moved to a maximized remote workforce:

• Can our IT facilities and capabilities handle the workload, or do we need to expand capabilities?

• e.g. Cloud storage; Virtual meetings; Collaboration workspace; Standardized software tools; Network capacity; etc.

• Can our physical facilities:

• if leased, be reduced, or renegotiated to reduce fixed costs?

• if owned, be maximized for leasing or partitioning for the new reduced workforce?

• Can our organization react flexibly to new cost structures to increase competitiveness and improve profitability?

Most importantly, can our leadership principles and company culture:

• Be clearly and constantly communicated to our newly distributed workforce?

• Ensure that our customers receive (and perceive) excellence in work product, support and value delivery?

• Be effectively applied to ensure that our staff are continually maximizing efficiency, effectiveness, and individual and team motivation?

We’re keeping everyone in our collective thoughts – especially the heroic medical professionals and staff; first-responders; and all of the essential retail, logistics, and utilities workers.

Our BOOST SMEs are some of the smartest people we know. If you need a resource or an introduction, let us know. We’re all in this together. Share resources, stay connected (digitally of course), and treat your people well. They will remember well beyond this season of change and that is going to make all the difference.

SF1408, What is it? Why is it important for you?

Letters, numbers, acronyms, and more. It’s like a GovCon fairytale minus the lions, tigers, and bears. Oh my!
Today we’re discussing SF1408. What is it and why is it something you should be familiar with?

A 1408 assessment is the Pre-Award Accounting System Survey (SF1408).  The Accounting System Survey is sometimes referred to as a “pre-award audit” and it is necessary for the award of any Cost Type contract.

A few points to note:

This comes BEFORE contract award.
Imagine losing a bid because you didn’t have your act together in your financials!

• This is not an audit.
They (DCAA) focus on your accounting system’s ability to be compliant if you were to receive the award.    It is simply a review to determine if your system is set up and operating in accordance with the criteria on page 2 of Standard Form 1408.

This is where policies and procedures rule (Here’s a tip: an accounting system is not just the software being utilized).
DCAA is looking for you to document what your system does – think segregation of indirect vs. direct costs and unallowables (our favorite); how are costs captured and classified?; how and where do you charge your time?

If you plan on priming this year on a Cost Type contract or are awarded a cost type subcontract (looking at you DOD peeps!), make sure you are prepared with documented policies and a compliant accounting system.

Note that this is different than an Accounting System Audit!  An audit of your accounting system is much more in-depth and includes tests of internal controls (e.g., segregation of duties, etc.).  Know what you need when you read through the RFP.  If you have a question, ask the COR during the Q&A time – the difference between the two is huge!

Do you still have questions or want to discuss this as it pertains to your business specifically? Contact us here.

Leading Through Uncertainty

We know what you’re thinking. “Not another #COVID19 article.” Not to worry, we’re providing you some insight on how you can lead your team through the next few weeks (or months?).

Let us start off by saying “Who gives a s#*t?”  To put it bluntly, if this is the first time you are talking to your clients, you are screwed.  No one cares how you are handling it – they care about how they are handling it.  People are scared. This black swan event is one that no one prepared for. Right now we are all trying to figure out how to keep the doors open.

What can you do as a leader?

First, chill out.  Meditate, go for walks, stress bake, or figure out what your go-to is for reducing your stress. This will help you act insightfully and rationally, not out of fear. Get real clear real quick as your level head is needed now more than ever.

Second, take a step back. What is the short-term impact to your company?  What is the state of your cash flow situation?  How long can you keep running and at what pace? (I won’t go into how you should have already known this through good business acumen. We’ll save that for another day). Figure out the next week. Then the next pay cycle. Then the next month.  Day by day, week by week, piece by piece.

Third, look for areas to pivot quickly and where you can exploit opportunities. (By exploit we don’t mean nefariously, only above-board ideas please.) What can you leverage quickly to keep your business afloat?  Where can you pursue leads with limited effort to increase sales or revenue?  Where can you cut costs?

Costs are always the easiest – it’s finding new revenue sources that requires creativity, forward-thinking and leadership.  Before you start cutting everything, what can grow with minimal investment?

Finally, lead like your business depends on it.  Because it does.  Now is not a time to delegate to your surrogates.  Now is not a time to not answer hard questions.  Now is the time to show your business what you are made of.  Even if you’re closing your doors or laying people off, the way and manner that you choose to do it will be remembered.  If you are an entrepreneur at heart, you will take another shot at it in the future.

 

Who knows? You may even pivot to a new business model and revenue stream that only enhances your business AND keeps your employees employed. People will remember how you handled your business during these times. Don’t ask anyone to do anything you wouldn’t do.

 

Stay sane.
Exploit opportunities.
Lead from the front.
Act with kindness and grace.

 

Netiquette

Now more than ever digital marketing is a peak requirement for visibility. While the world is hunkering down, business for many in the GovCon space continues. It’s time to get on the social train or get run over! Social Media isn’t just for “the kids” or the younger generation anymore. Businesses across industries are utilizing newer marketing techniques to stay connected and GovCon is no different. When viewing digital marking from a place of visibility, NOT being on social media could be harming your prospects before you have a chance to throw your hat in the ring.

For starters, let’s talk netiquette, or the etiquette you use when interacting online.

Be Human
You will NOT ruin your business’s brand simply by being on social media.
Our advice is to avoid the big three:

• Anything that you don’t want plastered on the side of a bus
• Anything you wouldn’t say on a stage in front of potential clients
• Anything that belongs on TMZ (you know, the gossip show.)

Instead, what you should do is to remember that you’re speaking to your audience on your profiles the same way you speak to someone in conversation. Humor is okay, conversation is okay (and encouraged), being a resource to your network is invaluable. **Side note here: Being human means speaking as you would when in a face-to-face conversation. You wouldn’t insert your business offerings to conversations randomly, so don’t link drop and run!

Be Active
Committing to a social presence means being active regularly. Long gaps between postings on your LinkedIn profile may be more detrimental than not having a social presence at all. When a potential client or customer searches your business online, and you know they will, they want to see that you take pride in what you do. Social media is the ultimate “we love our business’ pride machine. If you’re not willing to talk about it online, why would they?

Be Patient
As much as an audience of thousands or tens of thousands sounds nice in reality it is more of a vanity metric than a gauge of success. What matters more is the engagement (comments, shares, direct messages) that drives the success of a digital presence. If your posted content is driving new people to your website, that’s success. Even better, if your email or phone are becoming more active due to the content you’re sharing online, that’s Social media is no longer an “if you build it, they will come” type of endeavor. It takes strategy, execution, and patience to build a robust presence that turns connections into leads.

At BOOST we practice what we preach. While we understand that times are currently changing (and very likely unstable) we also know that business will continue! We believe in providing value through our blogs (like the one you’re reading), our free consultation (schedule one here), our free downloadable white papers, and more. We recommend that you take a look at your current social presence and identify which platforms and what kind of content could make a difference for your business. We can help with a high-level digital diagnostic to get you started.  Contact us!