Like many of you business owners, I too recently completed
my taxes and cringed at how much of my money is going to Washington DC. Mind you, I don’t mind paying taxes. I understand there are roles the federal
government has a constitutional obligation to perform (defense, regulate
commerce, regulate immigration, coin money, etc…) and as a “customer” of these
services it is my duty to help fund them.
I also understand the federal government is not a private company and
thus by it’s sheer size cannot behave like one.
Despite this I think it is reasonable to expect they will strive to adhere
to common prudent business practices.
The top three as a I see it are: (1) be fiscally conservative and sound
(solid balance sheet), (2) be good stewards of the funds they receive from tax
payers by searching for ways to remain lean and efficient and avoid waste, and
(3) never lose sight of who your customer is and try your best to meet or
exceed their expectations.
The recently publicized lavish ($822,000) Vegas trip taken
by GSA (government) employees was a gross violation of trust. Add to this the $523,000,000 dollar federally
backed loan given to now bankrupt solar start-up, Solyndra, one has to wonder
if there is a business person among them in charge.
Causing further angst is the latest chant from Washington “we
cannot solve our current fiscal crisis with spending cuts alone”. However it is worded you know this is
political speak for - new taxes have to be raised. The conversation then
immediately proceeds to who should pay and how much. Here is where I want to
stand-up and yell, “STOP!”
When a business is forecast to have red ink on their balance
sheet and they know their customer will be extremely sensitive to any price
increase they focus first internally to find a solution. They start by tackling internal waste. Then
they ferret out and eliminate “nice to have” versus “must have” spending. And lastly
and most regrettably a company will look at their people – evaluating and
cutting layers of management and staff – learning how to do the same with
fewer. It is only after they completely
exhausted these stressful steps do they come humbly to their customer and make
the case for raising prices. This is a
process that has been taking place and continues to take place in businesses
large and small since the very first business opened its doors.
It is time we ask our federal government to do the same
thing. That before nonchalantly asking
us, their customer, for one dime more we must insist they exhaust every means
to internally bring down their operating budget now.
Let your voices be heard America and tell the folks in DC
…..
Not one dime more
until each of the 15 cabinet departments (Treasury, Defense, etc…) and the multitude
of their subordinate agencies (see entire list here) completes a
thorough review and cut of wasteful spending.
Not one dime more
until these same agencies candidly review the necessity of all
discretionary and operational spending. In a time of fiscal crisis if it is not
an absolute “must have” then they should learn to live without it.
Not one dime more
until each and every agency conducts a thorough review of management
layers, administrative staff and the workforce.
Most companies have to deal with this at some stage in their lives. The federal government is no different. A high national unemployment figure is not
sufficient rationale for skipping this step.
The goal is an ultra lean organization void of perks.
And finally, not one
dime more until Congress reviews every single appropriation
($3,769,000,000,000). Are these “must have” spending or “nice to have”? I would argue that in the fiscal climate we
are in today a $500 million loan to a solar start-up is not a “must have”.
I realize these are painful, difficult steps that will have
personal and political ramifications. Politicians
will have to let pet projects and agencies die. Those who remain will have to
learn to do more with a lot less. Businesses and State governments have to
weather these storms when they are in crisis, our federal government should do
the same.
When the spending is actually cut and the excess people let
go our legislative and executive branch leadership should report to their
customers (tax payers) on the outcome and new state of the federal balance
sheet. Then, and only then should they
be allowed to start the debate about how much and who should cover the
remaining deficit. But not one more dime until this is done.
Let’s put an immediate stop to any conversation of tax
increases and compel our leadership to prove they can for once do the tough
part of cutting waste, non value-added spending, and staff now – not in 2016 or 2020 - NOW! Not one more dime
until then.
Let your voice be heard. Call/write your representative, those who are running for office and those who seek reelection, not one dime more until....
About the author. Mike Gomez is President of Allegro Consulting, a growth specialty firm helping turnaround businesses wrestling with stagnant growth. He grew his very first client’s business from $8M to $35M in just two years. Mike is also a prolific speaker, writer, three-time marathoner, a former military officer and pilot of both aircraft and helicopters. www.allegroconsultant.com
