As GovCons grind through the rest of the year, it is hard to think about 2019.  We’re a little worn out from proposal season and if you are lucky, new contract awards.  We’ve been recruiting hard in a difficult market, transitioning from incumbents, and getting new starts off the ground.  Depending on which agency you work with, you’ve had an upswing in work or you’ve spent most of the year trying to help your clients scrape together budget and “do more with less.” (Is anyone else sick of hearing this?!)  Some may be putting the finishing touches on their OASIS bid or hunting a few of the large elephants out there (JEDI subs, CMS PEO, etc.). Not sure about you, but we’re ready to start the holiday party networking scene and drink and eat away our cares.

While that may be tempting, now is the time to plan for FY19.  Corporate budgeting season should be well underway.  What are your goals for next year and what are your priorities?  What can you divert investment to and what do you hold off on?  We all have our wish lists of things we’d spend money on, but what has the best ROI for your company?  In our capitalist hearts, money drives all things…which is why the budget is so important.

If you have the attitude that the budget is just an exercise for accounting folks or it is just a spreadsheet drill, you are missing the point and the opportunity to align your company under a set of consistent goals.

Best practice has budgeting from both top-down and bottom-up approaches.  CEOs – what are your goals for next year?  Some folks think too small, while others pull a random number out of their ass and demand that BD/Capture/Ops get them there.  Some take a % increase off of the current year.  There is nothing worse than sitting in budget meeting after budget meeting listening to what the “stretch” goals should be.  Unrealistic and completely unattainable goals will demotivate a sales team faster than anything.  That being said, a goal shouldn’t be easy street either.  Take a cold hard look at your pipeline report.  Look at your customer’s budget. Do the environmental scan.  Don’t make up a number in a bubble.

From a bottom-up approach, take a good look at actual run rates, utilizations, and project budgets.  Review indirect costs for efficiencies.  What did you waste money on this year?  What led to no ROI?  Now’s the time to cut it or reevaluate for next year.  Ripe off the Band-Aid and make tough decisions.

Finally, tie the budget directly to your corporate goals.  Tie performance evaluations to goals and budget.  Then effectively communicate the goals and any changes to everyone so there is an understanding of where the company is going, company priorities and how each individual can contribute to those goals.

Or, if you would rather stick your head in the sand, a la the ostrich, there are always holiday parties to attend. Let us know how that works out.

BOOST can show you how to go back to the basics – pay your people and get paid. From there we can set up a monthly financial review meeting to analyze all financial aspects of your business. BOOST reviews your system with stakeholders and documents operational procedures. We help provide a structure and organize effective accounting systems that scale with your growing business. Let’s get you on the right path for FY19, today! [email protected]