Around 18 months ago, I posted an article on the Professional Catering blog regarding a interview with the CEO of Paychex on CNBC. (see full article below) The interview was focused on the Paychex business model and this company serves as the payroll department for many small businesses. Many of my clients use a service for payroll processing and it is very cost effective.
Paychex is focused on small business and 98% of their customers have fewer than 100 employees. I find the second statistic more interesting in light of the Affordable Care Act (ACA) which is on the minds of many operators. Mr. Mucci stated 82% of the Paychex customers have fewer than 20 employees. I believe many restaurants and caterers fit this profile. These companies will avoid most of the penalties which keep small business owners up at night.
Original Article:
Should You Hire Now?
3/31/2011
The Paychex CEO, Martin Mucci, was interviewed about the lack of movement in his company's stock. Mr. Mucci stated new business formation was flat. He mentioned 2 statistics which show the importance of small businesses in any business turnaround.
He stated 82% of the Paychex customers have fewer than 20 employees and 98% have fewer than 100 employees.
Paychex stock may be ready to make a move upward as American small businesses stop hibernating and begin hiring again. Should you be hiring now before the inevitable rise in salaries and wages? The job market is starting to add more jobs and first time unemployment claims are in decline. If your sales are perking up or your summer pipeline looks promising, it may be the time to hire.
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