Business is Good: The Facts Speak
I’d like to think that we can all agree that statistics on the U.S economy can be misleading. GDP is down! Oh wait, we get 2 revisions (we called those “do-overs” where I grew up) and we’ll post final data a few months from now. Or: unemployment is at an all time low (of course the number of actual employed persons is low too). A lot of the uncertainty in these types of estimates come from just that: they are estimates. Economists at BEA (or BLS) go through all sorts of gymnastics with scant data in order to come up with the numbers.
But you know who has really good data? Payroll companies. Want to know if employment is trending up or down? I’d ask someone that runs lots of payroll. In the US Paychex and ADP account for nearly 40% marketshare. And every week they get a glimpse into how many checks they are cutting. They’re take on the economy?
“97% Of Business Owners Had a Good Year Last Year.”
That’s headline worthy, right? It also jives with what we see here in our valuation work. It’s fair to say that across the board revenues have been up for at least the last 3 years.
And now, with start of 2016, the big question is: how are you going to improve on 2015? (We have some suggestions. Do some annual planning. And get a definitive understanding of your net worth by including a business valuation.)