In my opinion, whether small businesses have benefited from last year’s tax reform won’t be known until the next tax cycle (e.g. April 2019). While there are many reasons to be excited and expect an increase in revenue, to date there has been no actual benefit seen by small businesses that can be directly tied to the tax cuts on a large scale.
Despite the short term unknown, small businesses do seem to be preparing for growth. These preparations include “increasing salaries and staffing to keep up with demand, investing in marketing to lift sales and making capital improvements to the business, all of which have a direct impact on value.” Again this is what small businesses are claiming they want to do, but in an economy confidence matters, and these points show major confidence.
A “recent BizBuySell opinion poll revealed 84 percent of small-business owners anticipate their business to perform better in 2018 compared to 2017.” A positive that continues to show the strength of the economy.
While it’s true that the tariff issues may bring these confidence meters into jeopardy, for now, the tax reform is doing wonders for small business confidence and future plans.