Prices are up all over the place —at the gas pump, at the grocery store, at the car lot. Last year, the federal government reported a 7.5% increase in the cost of goods all across the board compared to the year prior. The consumer price index showed a 4% rise in housing, a 12% increase in the price of meat, and the cost to buy a used car is up more than 40%. Meanwhile, economists say the world could be sliding toward recession.
But here’s another reality: While families are dealing with sticker shock, profits for companies are skyrocketing. At the national level, data from the U.S. Commerce Department shows that corporate profit margins are the largest they’ve been in 70 years.And that’s on trend with what we’re seeing with our clients at Go Figure. As we go to press, one of our clients, with an incredibly consistent track record over 10 years, just posted their biggest revenue-generating month yet. And not by a small amount—nearly triple!
They aren’t the only ones. More than 75% of our clients are posting profits at a record rate. That’s not to downplay the fact that there are many small businesses that are struggling—they are—but profit seems to be more prevalent than recession, and for that we’re very grateful.
Which just goes to show that our capacity to recover quickly from difficulties, e.g., global pandemics, is a vital ingredient to how to approach running a small business. It’s difficult to imagine achieving success, however you may define it, without also suffering scrapes and bruises along the way. The trick is never doubting your capacity to rally.
Consider Elle Probst, realtor extraordinaire and this issue’s cover story. This kind, soft-spoken woman is the mother of reinvention, pivoting her life and her businesses in extraordinary ways over the years. Today, she can literally save your life, and save your deals, and now she’s learning to leverage Profit First to create the life and business she’s always dreamed of. Isn’t that beautiful?
So here’s to all the small business owners doing hard things, without any guarantee of success. Here’s to the hardworking teams building the ship as we’re steering it, with the grace and confidence to learn from our inevitable missteps.And here’s to walking into 2023 with a profit-first mindset and the audacity to dream big and make a difference in the world. Just like Elle.
Rachel Siegel, CPA
rachel@gofigureaccounting.net
