Operators of proposed business outsource solutions companies may want to look to The Employee Benefits Administration business plan. This plan opens with a description of the intended business and the business case for outsourcing HR functions. This benefits administration business plan details forecasted growth for three years, including anticipated number of staff hired during that time. Additionally, information about initial investment, start-up needs and costs are included. This benefits administration sample business plan states that it seeks to secure start-up funding in the form of a small business loan, preferably from the Small Business Administration, and details the company's cash flow needs. A brief analysis of the market and competition is included detailing the differences between the proposed venture and existing providers.
Employee Benefits Administrators (EBA) will provide benefits administration outsourcing for small to medium sized companies. The office, located in Morgantown, Pennsylvania, has opened for business.
The trend today for many employers is to outsource any function within their business that is not directly related to the generation of income. Consequently the Human Resources Administration function is one of the first to be considered for it has no direct link to bringing revenue across the threshold.
Outsourcing is a proactive approach that can improve productivity as well as reduce costs. Employee Benefits Administrators' goal is to provide high quality benefits administration and customer service, allowing its clients to focus on their core competencies and other strategic initiatives.
At the inception of the business, EBA will target clients with ten to five hundred employees. Clients will be able to select from four levels of service, which will be tailored to their needs:
COBRA (Consolidated OmniBus Reconciliation Act) and HIPAA (Health Insurance Portability and Accountability Act) Administration
Flexible Spending Account Administration
Basic Benefits Administration for health and welfare plans, including a call center
An "All-Inclusive" level combining the first three levels
EBA will market its services through business associates, insurance brokers, local businesses, and professional associations. EBA also has plans to become certified in the state of Pennsylvania as a "WBE", Women's Business Enterprise in order to do business on the Federal, State and Local government levels.
Employee Benefits Administrators has been established as an LLC (Limited Liability Company). Cindy Wells and Diane Davis are equal owners (principals) in the business. They have over 25 years of combined experience in corporate benefits administration, employee relations and communications, legal compliance, and a history of providing outstanding customer service. Their experience in dealing with all levels of management as well as employees, gives them an edge over their competitors.
This business plan has been prepared to forecast all financial statements for three years, as well as to obtain initial funding. This will cover initial start-up costs as well as operating expenses for the first year. Employee Benefits Administrators projects substantial revenue by the end of year one, and phenomenal by the end of year two.
Over the next three years, EBA hopes to achieve:
Substantial first year revenue with phenomenal growth in the next year
One new client/month for COBRA services, and one new client/quarter for basic and all inclusive services
Staff of three by the beginning of Year 2, staff of seven by the end of Year 3
By the end of Year 3, to evolve from providing strictly benefits administration to offering payroll services and/or any other HR services in which clients have expressed an interest in outsourcing
Employee Benefits Administrators provides high quality benefits administration and customer service for small to medium sized companies, allowing them to focus on their strategic initiatives.
1.3 Keys to Success
EBA's keys to success are:
Excellent communication and customer service skills -- completely confidential, reliable, and trustworthy expertise and information
One of the best Human Resources Information software modules on the market
Thorough knowledge of benefits administration issues
Get the entire sample plan and everything you need to customize it for your business.