000219429 Hollenbach Task Business_Plan_Template_(0412)

Student ID 000219429 Hollenbach Business Capstone Business plan Version page 1

SUPREME EMPLOYEE BENEFITS FOR VIRGINIA, LLCHR Consulting Company

Pack R. BenefitsPresident

3811 Benefits AvenueRoanoke, VA 24015

(540) 787-7363 (540-Supreme)SupremeEB.va.info/[email protected]

November 00, 2012

Confidentiality StatementThe information, data, and charts embodied in this business plan are

strictly confidential and supplied with the understanding that they will be held confidentially and not disclosed to third parties. This is the express

property of Supreme Employee Benefits and is not to be disclosed, distributed, or reproduced.


A. Executive Summary 4

A1. Business Identification: 4

A2. Mission, Goals and Objectives: 4

A3. Keys to Success: 6

B. Company Summary 8

B1. Industry History: 8

B2. Legal Form of Ownership: 9

B3. Location and Facilities: 9

B4: Management Structure: 10

B5. Products and Service: 12

C. Market Analysis 13

C1: Target Market 13

C2: Industry Analysis 13

C3: Competitive Analysis 13

D. Market Strategy15

D1: 4Ps. 15

D2: Price List- 15

D3: Selling Strategy- 19

D4: Sales Forecast- 21

E. Implementation Strategy23

E1. Overall Strategy- 23

E2. Implementation- 24


E3. Control Plan- 25

F. Financial Statements and Projections 28

F1. Revenue and Cost Estimate- 28

F2. Forecasted Profit and Loss Statement 29

F3. Forecasted Balance Sheet- 30

G1. Financial Projections 30

G1a- Breakeven Point-.......................................................................................................................................31

G1b-Financial Position:......................................................................................................................................32

G1c-Capital/Investment Needs:.........................................................................................................................33

References 34


A. Executive Summary

A1. Business Identification:

Supreme Employee Benefits for Virginia, LLC is a startup company located in the state

of Virginia. More specifically, Supreme is located in the Roanoke Valley at 3811 Benefits

Avenue in downtown Roanoke. Our closest competitors are chartered financial companies and

human resource consultants here in the Roanoke Valley area. Supreme Employee Benefits for

Virginia, LLC is a human resource consulting company, which delivers the best in quality and

cost-effective employee benefit packages to meet the diverse needs and desires of employees in

businesses throughout the state of Virginia.

A2. Mission, Goals, and Objectives:

Mission: The mission is to successfully evaluate, formulate, and deliver benefit packages

for companies in the state of Virginia, to please employers and help them retain judicious

energetic employees. Supreme Employee Benefits for Virginia, LLC will gain the respect of its

business clients by abiding by and keeping up with changing regulations, protect and reward our

employees with excellent benefits and bonuses. Supreme expects to be profitable inside of six

months because of the unique management design of the partner companies working with us to

provide better-priced benefit packages for employers in the area to satisfy the diverse needs of

employees.

Goals: Supreme Employee Benefits for Virginia, LLC sales approach will be; Benefit

packages tailored for 21st century businesses to attract loyal employees. Supreme Employee

Benefits for Virginia, LLC will work tirelessly to retain the clients we service by giving them the

highest benefits for the lowest dollars possible. Supreme Employee Benefits for Virginia, LLC


will work to build a company that is always in step with up-to-date products for employee

benefits. Supreme Employee Benefits for Virginia, LLC wants to be recognized as the top

employee benefits provider in the state and be competitive with its’ benefits packages offered to

its clients. Supreme Employee Benefits Consultants are specialists who work together

successfully as equal partners, each contributing expertise in the specific products partnered by

Supreme Employee Benefits for Virginia, LLC.

Objectives:

To be visible in the state of Virginia as an unequaled human resource consulting

company that offers the most cost-effective employee benefit packages for each

client to strengthen today’s business in a fast paced changing market.

Supreme will establish itself as a company with outstanding service in its sphere

of delivery to the clients it serves.

Supreme will endeavor to offer the best possible benefit packages in the

retirement income and stocks, dental, vision, health, EAP, flexible spending plans,

COBRA, and in life and disability products (Monster, 2012).

Benefit consultants are in demand and Supreme expects to be profitable in the

first 6 months of operation.

Supreme will work to increase the client base starting with an average of five in

the first 6 months, and working to increase the average to six clients per month by

the end of the first year. Supreme will push to increase its client base through the

12th month with total client contracts up to 70 plus businesses for the first year.

It will continue with a client increase of six per month goal in the first year and

work up to eight clients per month until 250 businesses have been achieved.


Supreme will retain all clients if possible by offering the best package of benefits

for each client’s needs and updating those needs as soon as an improved package

is available on the market. Supreme aims to keep our clients happy and make the

customer first always.

Expand to a second location within 5 years.

A3. Keys to Success:

Supreme Employee Benefits for Virginia, LLC currently is one of a dozen Human

Resource Consulting companies in the Roanoke Valley with exclusivity for

employee benefits. Supreme is a brand new company and this factor alone will

gain central interest among the businesses in the Roanoke Valley and give it

certain momentum.

The company has already created informed lists of the local businesses and their

current benefit plans. Supreme’s consultants know their product offerings and

how they compare with all other products in the benefits market. This

information helps to streamline the time it takes to disseminate information to a

prospective client providing a perfect benefit package for each company

employee.

Supreme’s consultants bring a combined experience of 37 years into the employee

benefits industry. This experience includes consulting for issues in Human

Resource, a variety of medical, life, and disability plans, ethical and diversity

training, and financial experience. Supreme’s consultants are experts for today’s

diverse and changing marketplace for employee benefits and delivering

continuous quality to fulfill each client’s demands (Monster, 2012).


B. Company Summary

B1. Industry History:

Employee benefits originate as early as the 1600’s with military pensions and by

the 1900’s became further established and countless regulations to protect those

benefits were put in place (Government, 2012).

A study in 2006 by the Employee Benefit Research Institute demonstrates the

importance of employee benefits. It states that 91% of Americans paid into some

type of employee benefit program and 62% of employees under age 65 were

receiving some type of health coverage from employers (Evans, 2012).

Significant history started with George Buck, Sr. who in 1916 opened an actuarial

consulting business in New York City with just two employees. This Human

Resource outsourcing giant now has 1,500 employees that work in 200 countries.

Buck Consulting, an ACS business acquired by Xerox in 2010, became the

leading human resource outsourcing company around the world (BuckConsults A

Xerox Company, 2012).

Supreme Employee Benefits for Virginia, LLC is a human resource consulting service

collaborating with a large number of carefully chosen benefit providers in the state of Virginia to

deliver employee benefits. All of these providers are established companies of integrity in their

service to all benefit holders. Supreme’s team of consultants attend employee benefits seminars

annually to stay current with changes to employee benefit plans and new providers. Supreme

Employee Benefits Consulting team of three brings expertise to their clients focused in these

areas: A) Retirement Income and Stocks; B) Medical, Vision, Dental, EAP, Flexible Spending,


and COBRA; C) Life and Disability benefits. Supreme collaborates with a very strong list of

providers to match the diverse needs of its clients (Monster, 2012).

B2. Legal Form of Ownership:

Legal corporate name: Supreme Employee Benefits for Virginia, LLC.

Supreme is a limited liability company incorporated in the state of Virginia and

licensed to do business as HR benefit consultants for employee benefits in the

state of Virginia. Supreme Employee Benefits for Virginia is owned by the

president, Mr. Pack R. Benefits who contributed $101,232 investment capital, and

the two consultants, who each contributed $45,000 giving a total investment

capital of $191,232 for starting Supremes consulting business. Supreme

Employee Benefits for Virginia, LLC chose this form of ownership to protect its

owner and keep liability with the company. Supreme also chose a Limited

Liability Company to avoid double taxation as a corporation and each partner will

pay taxes on their portion of earned income (Abrams, 2012).

Web address: SupremeEB.va.info/index.ebp.

Email address: [email protected] .

B3. Location and Facilities:

Supreme Employee Benefits for Virginia, LLC is located in downtown Roanoke in the

business section. There are 100 plus businesses within a two-mile radius and opportunity for

Supreme to service the more than 18,000 businesses in the Roanoke Valley. The office is in the

front of a large bank building sharing the entrance from the street. This gives Supreme

maximum exposure to prospective clients entering and leaving the bank building. The office

space has 11 rooms including two conference rooms, seven personal offices, large reception area,

mailto:[email protected]


two bathrooms, and a supply room. The extra office space is intentional for the growth of the

company with an increase of two additional HR consultants expected to take place within the

second or third years of operation.

Supreme Employee Benefits for Virginia, LLC is located in Roanoke, Virginia and will

follow state regulations for starting a business in Virginia: A) Supreme has already inquired

about the business name chosen through Virginia.gov for its availability, and was cleared for the

use of name "Supreme Employee Benefits for Virginia, LLC”. B) Supreme will need to file

Articles of Organization with the state of Virginia at a cost of $100. C) Supreme must consider

the state filing fee of $106. D) Supreme will request an Employee Identification Number from

the Internal Revenue Service. E) Supreme must obtain a local business license for its status as a

business service in Roanoke City at a cost for the first year of $50 and yearly thereafter, or pay

36 cents on the dollar for gross sales above $100,000. F) Run an ad in the Roanoke Times for

one week for a public notice regarding Supreme Employee Benefits for Virginia, LLC as a new

LLC business at $150 for seven days.

B4: Management Structure:

Supreme Employee Benefits for Virginia, LLC has five employees:

Pack R. Benefits, SPHR, President, Managing Director (HR Benefits Consultant). He

brings 20 years of consulting experience to the business and is a licensed life and health

agent in Virginia. Mr. Pack had been planning this company for two years and is pleased

to see its evolution take place.

Don L. Hunter, CEBS, Secretary, Training Manager (HR Benefits Consultant). He

brings 10 years of HR ethics and diversity training experience to the business. He is a

licensed life and health agent in Virginia. Mr. Hunter will be a key asset to Supreme.


Gina Money, CEBS, Treasurer, Financial Manager (HR Benefits Consultant). She brings

7 years of experience as an HR manager of a small business and also was responsible for

their accounting needs and came highly recommended.

Tom Nuspublic, BSM, Advertising/Marketing, and web design. Tom brings 5 years of

experience as a web designer, and 4 years with excellent references for marketing and

advertising from a prosperous small business. While this is a step up for Tom, Supreme

anticipates Tom to be an excellent fit for our advertising and marketing needs. His

expertise as a web designer will also increase the success of Supreme’s online visibility.

Lori Messenger, Assoc. BAD, Administrative Assistant. Lori has 3 years of experience

with a health facility and recently graduated with her associate’s degree in business with

high honors. She came well recommended because of her outgoing personality and

devoted work ethics. She will be a vital asset to Supreme’s team for her organizational

skills with appointments and social expertise as an important frontline employee both on

the phone and in person.


B5. Products and Service:

Supreme Employee Benefits for Virginia, LLC has ten partners who offer excellent

products to service the employee benefits offered. The services include Retirement Income,

Stocks, Life and Disability, Medical, Vision, Dental, Cobra, and EAP to include Flexible

Spending accounts. Products: The ten partners chosen focus their efforts to offer economic

prices to meet the needs of all our clients’ employees. Listed below:

Bet Life,

Clean Dental Services

Domain

Dental Care

Eye Service

Professionals

Option Finance Group

Punite Health Care

Restore Eye Group

Stack Life Financials

Superflex Benefits

Xanthim

C. Market Analysis

Pack R. Benefits

President

Managing Director

Don L. Hunter

Secretary

Training Manager

Gina Money

Treasurer

Financial Manager

Tom Nuspublic

Advertising/Mktg.

Web design


C1: Target Market:

The employee benefits market is described as any organization or individual who

is seeking professional consulting to demonstrate product offerings and educate their staff

on employee benefits and packages best suited for their business. There are more than

18,000 businesses in the Roanoke area with 2 or more employees, and greater than

1,000,000 businesses in the state of Virginia. The opportunity for growth in this market

is unparalleled. The motif is that we offer our clients a reduction to their budget equal to

that of two to three trained full-time employees (salary, benefits, retirement, overhead

expenses, etc.) by providing HR professionals to accomplish this task of choosing

benefits to fit a group of employees. We provide our own training as a guarantee that we

will offer only the best options from the partners we access.

C2: Industry Analysis:

Employee benefits have reached a level of primary importance to employees and

individuals in search of jobs since the early 1900’s. For the past 9-10 years, it has

become more popular for businesses to outsource HR needs from consultants specializing

in employee benefits. This change created a wider variety of possibilities for benefit

choices to both the employer and the employee to satisfy a range of needs and desires for

benefit packages across the business world. The demand for benefits consultants in

Virginia is about one per 1000 and this industry will remain in demand because of the

ever-changing landscape of the HR business and choices to outsource for a number of

employee benefit services (Labor, 2012).

C3: Competitive Analysis:


There are a few HR specific consulting services in the area and an

estimated 100 plus financial and business management consultants to include

employee benefits in the Roanoke area. They offer leading brands with higher

priced benefits and packages. Supreme Employee Benefits for Virginia has

exclusive contracts with the ten partners listed with competitive low prices

because these partners choose to have fewer on site employees and a larger

number working as virtual employees. This aspect greatly reduces the price of

benefit packages and will make Supreme ultimately very attractive to businesses

and a leading competitor in HR consulting for the Roanoke area and for the state

of Virginia.


D. Market Strategy

D1: 4Ps.

Supreme Employee Benefits for Virginia, LLC will utilize what is called the 4P’s of

marketing, Products, Price, Promotion, and Place to show how it can best use the marketing mix.

Products and Service:

Supreme Employee Benefits for Virginia, LLC is listed with HR Benefits Consulting

services as a small business in Southwest Virginia. The underlying service Supreme offers by

being an outsourced human resource service is 25% savings and a variety of benefits to satisfy

the diverse needs of each client’s employees. Supreme delivers benefit packages at a savings

equal to what a business would expend for two to three employees with benefits (salaries,

benefits, training, retirement, PTO or vacation and sick time, overhead expenses, etc.) with a

variety to satisfy the diverse needs of each client’s employees. The tangible service Supreme

offers are quality benefit packages with reasonable prices affordable to all employees in a

business for maximum satisfaction overall. The extended benefit clients will afford is the

protection by our company, which is bonded, insured, and licensed with yearly training required

for staff to include up-to-date policies for benefits, legal requirements, and for the changing

desires/needs in an ever-revolutionizing business landscape.

Price:

Penetration pricing will be the best approach for a new business in this competitive

market. The advantage of products from partners who do not have a traditional business

employee platform and use virtual staff to process business is the reduced cost of benefit

packages by 25% overall and makes Supreme Employee Benefits for Virginia, LLC highly

competitive in the benefits industry to any size company in this difficult economy.


Promotion:

Supreme Employee Benefits for Virginia, LLC will start its promotion with its

announcement for a new LLC business opening with a half page add in the business section of

the Roanoke Times Newspaper, and then with a website design by the

marketing/advertising/website designer, Tom Nuspublic. The brochure will be created matching

in part the website design and logo. The brochure will be mailed to zip codes first in the local

area of Roanoke relative to the office downtown, and then to the surrounding zip codes at one-

month intervals until all zip codes have been reached in the Roanoke-Salem-Vinton area for best

advertising coverage. The brochure design will use the catchy phrase “Supreme Employee

Benefits the most competitive prices and benefits in Virginia”. On the brochure, it will be

advertised as “Benefit packages tailored for 21st century businesses to attract loyal employees.”

Supreme is focused on a new way to price benefits and still receive supreme benefits from top

insurance companies available in the USA. The brochure will advertise for Supreme’s partners

with their logos including a line about the 25% overall reduction in price due to less overhead

with virtual processing to keep prices affordable and very competitive in the employee benefit

industry. The inclusion of the logos will be for the purpose of potential clients researching our

partners in insurance online. All of the partners have secure websites with online access through

client/employee access numbers so all employees will be able to evaluate a claim status or

change in their benefits easily from any computer. The marketing/advertising/web design

manager, Tom Nuspublic, has five years of experience and came highly recommended for his

expertise in design as well as his understanding of how to communicate both in person and

through advertising to businesses and the public. Tom Nuspublic and the three managing

officers will use networking in their business contacts on a personal basis and heavily in business


group meetings throughout the Roanoke-Salem-Vinton area. This will involve a large number of

industry gatherings, which will give Supreme a high profile quickly. Being known as a new

business with faces to remember will be a key factor to being referenced and publicly recognized

by other organizations.

Place and Distribution:

Supreme Employee Benefits for Virginia, LLC is a service company and, therefore, is not

in need of a physical distribution channel for delivering goods, but does have a process whereby

it connects with its clients to implement its employee benefit services in competition with the

industry using a direct approach. This approach is demonstrated below:


Any Managing Officer or Marketing/Advertising Manager

1) Cultivate contact with recent or new client

2) Set up services to be provided

3) Set up contract

Business Client Response

1) Agree to acquire services from Supreme Employee Benefits for Virginia, LLC

2) Choose services to be provided

3)Sign contract

D2: Price List:

$8000 First year per diem flat fee to all clients to showcase benefits

$9,000 Second year increased per diem flat fee to showcase benefits

PACKAGES A, B, C, & D sign 2-year contracts. Commission rates as listed:

a) Client groups with 25-35 employees average 25 pkgs purchased and net $30 per

pkg monthly commission rate per agreement with partners to Supreme.

b) Client groups with 36-50 employees average 40 pkgs purchased and net $25 per

pkg monthly commission rate per agreement with partners to Supreme.

c) Client groups with 51-149 employees average 100 pkgs purchased and net $20

per pkg monthly commission rate per agreement with partners to Supreme.

d) Client groups of 150 or more, a monthly commission rate of $10,000 per client

per agreement with partners to Supreme.

D3: Selling Strategy:

Supreme Employee Benefits has a marketing/advertising manager, Tom Nuspublic, who

will develop a direct strategy through business referrals and by direct mailers organized by zip


codes. Tom will also develop an indirect selling approach through the company web site

SupremeEB.va.info/index.ebp, and through social networking web sites, LinkedIn, and Face

book to fulfill its milestones and meet goals to deliver value to its clients. The selling strategy

goals and milestones are shown on page 19.

Strategy Timeline Dates

Milestone/ Goals Description Responsible Party

Start up Month January 2013

Hire skilled teamSkilled, professional team of consultants is vital for company success

President - Chief Managing Offi cer

January first weekSign Contracts with 10

partners

Research and find 10 insurance benefit partners who primarily use virtual assistants to cut costs and give the best benefits to meet

desires for today's employees

Consulting team (President, and two partner consultants)

January 2013 second week

Plan marketing and advertising promotion

Brochure design and zip code access acquired. Web design for web page, and networking with Facebook, Linked In, and Twitter will

greatly increase visibility for the company.

Marketing/ Advertising Manager and President

January 2013 third week

First two clients scheduled with invitation to cohost February SHRM meeting

Connections at SHRM meeting was a great success for landing opportunity to showcase benefits

Consulting team

February 2013 second week

Showcased six clients to date Advertising is paying off slowly with 4 new clients respondingMarketing/ Advertising Manager and Consulting

team

February 2013 third week

Cohost SHRM meeting two more client dates

Cohosting SHRM meeting excellent for up front promotion of Supreme's focus on increasing benefits for employees while saving

$$ for clients.

Consulting team and Marketing/Advertising

managerFebruary fourth

week Grand Opening

Grand opening with news coverage by local Channels

10 and 7

Catered event for promotional push with news coverage by local TV stations and radio announcement. Great advertising for Supreme

Employee Benefits as a new business in townPresident and Entire staff

March 2013 end first quarter

Business increase from first two months

Marketing to zip codes, and web site making great progress with six new clients to showcase this month

Marketing/ Advertising Manager and Consulting

team

June 2013 end of second quarter

Finally, business is in the black

Word of mouth, business meetings, and marketing zip codes, web site, and networking connections giving visibility for success and 36

clients total for 2013


teamSeptember 2013

end of third quarter

Supreme has succeeded with excellent reputation

Clients and their employees are expressing satisfaction for Supreme's services and business is going very well


team

December 2013 End of first year

Supreme now has 70 clients and growing.

Supreme has proven successful in its first year with a strong profit and very happy clients who appreciate the 25% savings with our company. Supreme has become well known and the marketing

strategy chosen was successful.

Marketing/ Advertising Manager and Consulting team and administrative

secretary

2014 Second year The Valley recognized Supreme in Roanoker

Magazine

Supreme is finally recognized in the Valley as the best choice for employee benefits by the Roanoker Magazine with half page article

including photo of consulting team and staff


team

Apr-14Special month increased

client base to 100Offi ce party for 100th client reached goals are being met and

Supreme's profitability is established

Marketing/ Advertising Manager and Consulting team and administrative

secretary

December 2014 end of second year

Supreme reaches 156 clients and 122% growth

Advertising is paying off in a big way with goal of 200 clients almost met. Competitive strategy of 25% reduction in cost for Clients has

become preferred


team

Year 2018 is 5-year mark

Add two Consultants to our team

Supreme's demands for showcasing benefits has grown to the point of needing two more consultants for our team of three with 250 plus

clients for our base and still growing


team

219429 Hollenbach Business Capstone Business plan Version 1.1 page 20

D4: Sales Forecast:

The Sales forecast for clients achieved and benefits showcased including commission is

demonstrated on page 20. Commission break down representing packages A, B, C, & D is

estimated to produce the following results for every 10 clients showcased benefits by Supreme’s

excellent consultants. This is based on clients required to follow the law to provide insurance to

their employees as anticipated starting in 2013. At this time, Supreme has the premier partners

with the best benefits desired by clients and employees and will have estimated 85% sales

success. Some competition will continue to go to Anthem BC/BS and other well-known carriers.

a) 20% of client sales are groups of 25-35 with average purchase of 25 pkgs: 25 x 2 x $30 = $1,5000

b) 30% of client sales are groups of 36-50 with average purchase of 40 pkgs: 40 x 3 x $25 = $3,000

c) 30% of client sales are groups of 75-149 with average purchase of 100 pkgs: 100 x 3 x $20 = $6,000.

This larger group size has a 25% fail rate for every 4 clients shown benefits, therefore only ¾ change

to the lower rates offered by Supreme’s partners.

d) 5% of client sales are groups of 150 or more with commission rate per client of $10,000 monthly.

These very large groups have a 50% fail rate for every 2 clients shown benefits, therefore only ½

change to the lower rates offered by Supreme’s partners.

The graphs for the sales forecasts years 2013 and 2014, along with Year-to-Date totals with pie

graphs can be viewed in the Financial Statements and Projections section of Supreme’s business

plan, pages 27, 28, and 29.

Sales Forecast sheet for 2013 next page

Month January February March April May June July August September October November December TOTALSTotal Clients 5 3 6 5 6 6 7 5 7 9 7 4 70Showcase Benefits Fee $40,000 $24,000 $48,000 $40,000 $48,000 $48,000 $56,000 $40,000 $56,000 $72,000 $56,000 $32,000 $560,000Pkg. A Clients Sold 1 1 1 2 1 2 1 1 2 2 2 1 17Pkgs. Sold 25 25 25 50 25 50 25 25 50 50 50 25 425

Net Commission $750 $750 $750 $1,500 $750 $1,500 $750 $750 $1,500 $1,500 $1,500 $750 $12,750Pkg. B Clients Sold 2 1 3 1 2 2 2 3 2 3 2 2 25Pkgs. Sold 80 40 120 40 80 80 80 120 80 120 80 80 1,000

Net Commission $2,000 $1,000 $3,000 $1,000 $2,000 $2,000 $2,000 $3,000 $2,000 $3,000 $2,000 $2,000 $25,000Pkg. C Clients Sold 2 1 of 2 2 1 of 2 3 of 4 2 3 of 4 1 of 2 3 of 4 3 of 4 3 0 of 1 24Pkgs. Sold 200 100 200 100 300 200 300 100 300 300 300 0 2,400

Net Commission $4,000 $2,000 $4,000 $2,000 $6,000 $4,000 $6,000 $2,000 $6,000 $6,000 $6,000 $0 $48,000Pkg. D Clients Sold 0 0 of 1 0 1 0 0 of 1 1 0 of 1 0 1 0 of 1 1 4Pkgs. Sold 0 150+ 0 150+ 0 150+ 150+ 150+ 0 150+ 150+ 150+ 4

Net Commission $0 $0 $0 $10,000 $0 $0 $10,000 $0 $0 $10,000 $0 $10,000 $40,000

Current Commission $6,750 $3,750 $7,750 $14,500 $8,750 $7,500 $18,750 $5,750 $9,500 $20,500 $9,500 $12,750 $125,750

Month Total Commission $6,750 $10,500 $18,250 $32,750 $41,500 $49,000 $67,750 $73,500 $83,000 $103,500 $113,000 $125,750

Total Commission + Fee (sales) $46,750 $34,500 $66,250 $72,750 $89,500 $97,000 $123,750 $113,500 $139,000 $175,500 $169,000 $157,750 $1,285,250

SUPREME EMPLOYEE BENEFITS FOR VIRGINIA SALES COMMISSION FORECASTJANUARY 1 2013 THRU DECEMBER 31 2013



E. Implementat ion Strategy

E1. Overall Strategy-

Supreme Employee Benefits for Virginia, LLC is focused on the overall strategy that in

our recession economy it is a requirement for businesses to have benefits for their employees, the

least of which must be health insurance. Outsourcing benefits by consultants has been a positive

change for greater than 10 years and is an expected way to complete the benefits package for

businesses today. The demand for benefit consultants is stable and will only increase with the

year 2014 and Supreme will have established an excellent presence in the Roanoke area

(Abrams, 2012).

Strategy for compliance legally will be the next step to protect the interests of Supreme

and the community it serves. Supreme has connected with Legal Shield and will accomplish the

necessary legal paperwork through the attorney they assign locally.

Third, strategy for location is very important. Supreme desires foot traffic and word of

mouth to help launch its clientele numbers in the first few months. A bank building on a corner

with an office space opening to the street and inside the bank was the chosen facility. A perfect

location with a high profile will help Supreme EB to become known quickly with plenty of

referrals from the surrounding area. In addition, Supreme has a list of all the businesses for a 20-

mile radius to pursue through its expert marketing manager, Mr. Tom Nuspublic.

Supreme’s next step for strategy is the insurance partners it will sign with and staff it has

currently hired. Mr. Pack R. Benefits, President, has signed with ten excellent partners, which

are listed in the products and service section. The staff chosen is two consultants, a

marketing/advertising manager, and an administrative assistant to join him in opening Supremes

consulting business venture. It is a very tight team but this will make the growth of the company


take off quickly because everyone will be closely involved with the details of Supreme’s success

and work towards the goals set forth. It is planned to expand in the fifth year of business to

another location when Supreme has outgrown its office and hired at least two more consultants

and possibly a receptionist to join the administrative assistant by relieving her of clerk type

duties.

The fifth and last strategy that Supreme will be focused on is measuring its reception into

the community and overall likes and dislikes of procedures used for the consulting team and the

showing of the benefits from the partners it has chosen. This will be looked after by the

Marketing Manager who currently manages the website. This will be accomplished by a survey

on the website to protect identity that will be accessible to all clients and their employees to

acquire the needful criticism to become a successful well received company in the Valley. This

information will be discussed at monthly business meetings with Supreme’s current staff of five

and action will be taken for improvements as determined by the surveys. It is believed that

surveys are the fastest method for getting feedback from clients to ensure a smooth resolution

with any communication or procedures that must be changed or improved.

E2. Implementation-

The objective of Supreme is to follow the legal process necessary to protect the interests

of Supreme as a small consulting business and to be in compliance for the State of Virginia and

Roanoke City for the success of integrating downtown as a desirable well respected company.

Supreme wants to stand out as a consulting service that is prominent because of its attention to

detail for pleasing the clients and their employees with the best benefit packages to offer in the

state of Virginia. This will be evident by Supreme’s growth rate in its first two years of


operation and being able to succeed with 100 clients in its first 16 months of business, and

continuing to grow into 250 clients by the end of year three of operation.

Milestone 1 Supreme’s President, Mr. Pack R. Benefits will see the attorney in

November of 2012 to process paperwork appropriately for starting a small

consulting business in the state of Virginia, in Roanoke City.

Milestone 2 December 2012 Supreme will acquire the office location and sign paperwork

for lease.

Milestone 3 December 2012 Supreme’s team of three consultants will acquire ten

insurance partners.

Milestone 4 December 2012 Supreme’s President will begin the venture to hire two other

staff, which will complete their team for business in the first year.

Milestone 5 January 2, 2013. The marketing manager will create Supreme’s web page

and design the brochures for mailing to get visible in the community as quickly as

possible.

Milestone 6 February last week 2013, Supreme will hold a Grand Opening to help boost

sales for the next quarter.

E3. Control Plan-

Milestone 1 Mr. Pack R. Benefit has consulted with Legal Shield and signed a contract

with them to draw up paperwork and sign appropriate documents for a consulting

business in the state of Virginia for Roanoke City. The two consultant partners and Mr.

Benefit will put their invested dollars into its business account for Supreme Employee

Benefits for Virginia, LLC. President, Mr. Pack R. Benefit will put up his share as the

primary owner a total of $101,232, consultant Don Hunter, and Gina Money each putting


in their share totaling $45,000 apiece for a total of $191,232 for Supreme’s initial capital

investment. A bank loan will also be acquired to protect the assets in the first five years

of business. If a company is short on cash and a problem arises, it may become difficult

to protect Supreme’s interests, so borrowing the money upfront will be a prudent step in

keeping the business secure in the first years of operation until adequate capital has been

produced through retained earnings from sales. A 5-year loan with 20 quarterly

payments at 8% is signed by the 3 consulting partners.

Milestone 2 Supreme signed the lease for the office space to start on January 1, 2013,

with its two partners present to sign as well. Supplies and furniture will also be ordered

at this time to arrive for January 2nd. A lease for equipment will be signed for through a

local business machines company with technical support contract as well.

Milestone 3 Supreme’s consulting team will spend time putting together the insurance

partners who will best fit their objective for providing the savings of 25% to their clients.

This is Supreme’s primary selling point to penetrate the employee benefit market and is

the key to their success in the first year of business. Supreme will accomplish this task

by choosing insurance partners who work with offsite processing staff and have excellent

packages to meet the demands for the 25% reduction in standard pricing for the

competitive edge that will be needed to compete for business in the Roanoke Valley.

Milestone 4 Supreme’s President will proceed to hire the marketing/advertising

manager, and the administrative assistant to complete Supreme’s team for the first year of

business. It is important to focus carefully on the candidates applying for these two

positions because they are the frontline image clients will see and they must be devoted

employees to complete the team of three consultants for Supreme’s success this first year.


Milestone 5 Tom Nuspublic will begin promotions through Supreme’s web page and zip

code selection with brochure mailings, as well as attended other key business events to

help Supreme Employee Benefits for Virginia, LLC become publicly known. The result

will be consult requests to show the benefit packages available through Supreme’s 10

partners and a first quarter growth of 14 contracts secured with gross sales of $112,000.

Milestone 6 The grand opening will be advertised at the beginning of February to be

held in the last week of February after 2 months of operation. Supreme will make

available finger foods, drinks, and a display table with brochures from the ten partners in

insurance that Supreme has signed with and Supreme’s business cards for quick access to

set up appointments to see these benefits showcased. This will also include introductions

as invited by clients with brief information on Supreme’s desire to save employees and

businesses the 25% with employee benefit packages that Supreme is now becoming

known for, and take time to get to know the clients on a personal basis.

Revenue & Expenses January February March April May June July August September October November December YTD TOTALREVENUE (Sales): $40,000 $24,000 $48,000 $40,000 $48,000 $48,000 $56,000 $40,000 $56,000 $72,000 $56,000 $32,000 $560,000Current Month Commissions $6,750 $3,750 $7,750 $14,500 $8,750 $7,500 $18,750 $5,750 $9,500 $20,500 $9,500 $12,750Total Monthly Commissions $6,750 $10,500 $18,250 $32,750 $41,500 $49,000 $67,750 $73,500 $83,000 $103,500 $113,000 $125,750 $725,250Grand Total Rev+Comm: 46,750 34,500 66,250 72,750 89,500 97,000 123,750 113,500 139,000 175,500 169,000 157,750 $1,285,250

OPERATING EXPENSES: $63,069 $57,069 $57,069 $77,069 $57,069 $57,069 $77,069 $57,069 $57,069 $77,069 $57,069 $57,069 $750,828

Total: -16319 -22569 9181 -4319 32431 39931 46681 56431 81931 98431 111931 100681Difference Revenue & Expenses $534,422

Supreme Employee Benefits for Virginia, LLC Revenue and Cost EstimateJanuary 1, 2013 thru December 31, 2013


F. Financial Sta tements and Projec tions

F1. Revenue and Cost Estimate-

Monthly Profit and Loss January February March April May June July August September October November December TotalREVENUE (Sales ): $40,000 $24,000 $48,000 $40,000 $48,000 $48,000 $56,000 $40,000 $56,000 $72,000 $56,000 $32,000 $560,000COMMISSIONS $6,750 $10,500 $18,250 $32,750 $41,500 $49,000 $67,750 $73,500 $83,000 $103,500 $113,000 $125,750 $725,250Total Revenue Sales/Comm. $46,750 $34,500 $66,250 $72,750 $89,500 $97,000 $123,750 $113,500 $139,000 $175,500 $169,000 $157,750 $1,285,250

EXPENSES:Fixed ExpensesUtilitiesLease for bldg. (utilities Incl.) $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $60,000Phone & Internet High Speed $186 $186 $186 $186 $186 $186 $186 $186 $186 $186 $186 $186 $2,232Total Utilities $5,186 $5,186 $5,186 $5,186 $5,186 $5,186 $5,186 $5,186 $5,186 $5,186 $5,186 $5,186 $62,232

Payroll ExpenseSalaried Payroll $20,669 $20,669 $20,669 $20,669 $20,669 $20,669 $20,669 $20,669 $20,669 $20,669 $20,669 $20,669 $248,028Employee Payroll $6,658 $6,658 $6,658 $6,658 $6,658 $6,658 $6,658 $6,658 $6,658 $6,658 $6,658 $6,658 $79,896Employee Benefits $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $48,000Payroll Tax $13,131 $13,131 $13,131 $13,131 $13,131 $13,131 $13,131 $13,131 $13,131 $13,131 $13,131 $13,131 $157,572Total Payroll $44,458 $44,458 $44,458 $44,458 $44,458 $44,458 $44,458 $44,458 $44,458 $44,458 $44,458 $44,458 $533,496

Variable ExpensesGeneral AdministrativeAdministrative $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $15,600Marketing & Advertising $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $12,000Lease Equip. (Comp. Copy/fax) $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $12,000Supplies $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $3,600Furniture $6,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $6,000Legal Shield $75 $75 $75 $75 $75 $75 $75 $75 $75 $75 $75 $75 $900Total General Administrative $9,675 $3,675 $3,675 $3,675 $3,675 $3,675 $3,675 $3,675 $3,675 $3,675 $3,675 $3,675 $50,100

Travel ExpensesConsultants and Mktg Manager $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $30,000SPHR Consultant $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $15,000Total Travel Expenses $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $45,000

LoansBank Loan Pri nci ple pmt on $400,000

Total Quarterly Payment $20,000 $20,000 $20,000 $60,000

Total Operating Expenses: 63069 57069 57069 77069 57069 57069 77069 57069 57069 77069 57069 57069 750828Profit before Interest -16319 -22569 9181 -4319 32431 39931 46681 56431 81931 98431 111931 100681 534422Interest Expense (32,000/20) $0 $0 $0 $1,600 $0 $0 $1,600 $0 $0 $1,600 $0 $0 4800Net Profit (Loss) - Monthly -16319 -22569 9181 -5919 32431 39931 45081 56431 81931 96831 111931 100681 529622

Net Profit (Loss) $529,622Net Profit/Sales $529,622

Assumptions:

$400,000 Bank Note 8% Quartly unpaid balance 20 payments over 5 year note

Lease on computers, copy-fax machine includes maintenance to all machines and IT technician for computers.Travel expenses include $200 per week for 2 consultants and 1 marketing manager, and $300 per week for Mr. Pack R. Benefits, President.

FORCASTED PROFIT AND LOSS STATEMENT JANUARY 1, 2013 - DECEMBER 31, 2013SUPREME EMPLOYEE BENEFITS FOR VIRGINIA, LLC

Revenue is from showcase of benefits to clients at $8,000 per day, and Commissions based on average packages purchased for ABCD size clients seen on average monthly.Lease on building space is yearly and includes utilities and general cleaning.Employee benefits is medical, dental, vision care for family coverage on all employees.Administrative fees include catered finger foods and drinks for clients when showing benefits for the day and any other surprise costs incurred.


F2. Forecasted Profit and Loss Statement

Administrative expense

681,528 tot ex 533,496.00$

39,600.00$

Utilities expense 62,232.00$

Total Liabilities and Owner's Equity 1,047,704.00$

Total Equity 632,404.00$

Invested Capital 191,232.00$

Payroll Expense

Revenue 1,127,500.00$

Net Income

Total Liabilities 415,300.00$

Owner's Equity

340,000.00$

Long Term Liabilities:Bank Loan 5-year note 340,000.00$

Legal Shield 900.00$

75,300.00$

Accounts Payable 9,600.00$

Note Payable 60,000.00$

LIABILITIES:Current Liabilties:

Total Assets 1,047,704.00$

6000/60 months x 12 = 1200 $1,200.004,800.00$

Less Accumulated Depreciation

Furniture 6,000.00$

1,042,904.00$ Long Term Assets:

Supplies 3,600.00$

881,554.00$ Accounts Receivable December sales + commissions 157,750.00$

ASSETS:Current Assets:

For Period Ending December 31, 2013Supreme Employee Benefits For Virginia, LLC, Projected Balance Sheet

Cash 400,000.00$

Depreciation expense 1,200.00$

Interest Payable 4,800.00$

Revenue - expenses 441,172.00$

Interest expense 4,800.00$

Travel expense 45,000.00$


F3. Forecasted Balance Sheet-


G1. Financial Projections

The Sales Forecast sheet for 2013 demonstrates expectations for 5 clients in the first

month of business and only 3 in the second month, and the rest are increases of 5 clients or more

with December being a low month with only 4 clients added to the base. This estimate is based

on estimate for every 10 clients showcased there will be an approximate 2-3 fail rate and the

reason for December is more because it tends to be less active for changes in business insurance

carriers because of the focus on holidays coming up. The entire year shows an average greater

than 5 clients per month with months 1,2 and 4 being in the negative, but a definite profit for the

year when commissions are calculated with the sales fees after expenses. Supreme’s second year

of business shows a steady growth to 7 clients increase on average per month and an excellent

increase in sales and commissions to $3,239,750. This is a very healthy increase in profit of

252% for the second year. This assumption is based on all contracts fixed at 2 years, and the

commissions would continue to accumulate for that two years, as well.

G1a- Breakeven Point-

The average cost per client (unit) for Supreme is $18,360 as demonstrated on page 31.

For a break even forecast on Supreme’s need for sales to cover expenses monthly of $62,569,

Supreme would have to sell on average 3.40 clients per month or 40.89 clients per year to break

even. The first month Supreme sold 5 clients but had start-up expenses that incurred a negative

balance causing break even points for Supreme’s first year to happen in March when sales with

commissions finally catch up from the negative balance. However, in April, the sales +

commissions are $72,750 and become negative again when compared against the operation

expenses which reflect the first quarterly loan payment with an estimated break-even amount at

$77,069. In August, it is noted that sales + commissions after subtraction of expenses cross over


the estimated break even amount of $57,069, and at that point stays in the positive permanently

to the end of year 2013. This graph picture demonstrates this event.

The average cost per unit volume for Supreme, as a service company, will be the fixed

cost per client of $8,000 plus total commissions of $725,250 divided by 70 clients, which

equals $10,360 and the total becomes 18,360 for unit volume (average), as shown.

__$560,000+$725,250_____ = $1,285,250 ____ = $18,360.71 70 clients 70

G1b-Financial Position:

Supreme Employee Benefits for Virginia, LLC will not make a true profit until the fifth

month of business because of startup fees and a quarterly loan plus interest payment, which

offsets the sales and commissions coming in up to that point. It will appear to be making a profit


in the third month but will lose it in the fourth month because of the loan and interest payment.

Supreme will show a healthy profit at the end of the first year if the client base passes 41 clients

and achieves its estimated 70 clients in the first year of business. The expectation of

achievement for this number of clients is pending the medical coverage laws mandatory

requirement as imposed by our current government. Supreme’s capital started out with

$191,232 and took on a $400,000 loan to cover expenses for the first few months of operation.

The end of year equity shows Supreme to have made a healthy increase to $1,047,704 and is an

increase of 177% for the year.

G1c-Capital/Investment Needs:

Supreme’s three partners will be investing together $191,232 for their interest in the

consulting business. The president will invest $101,232, the secretary-training manager will

invest $45,000, and the treasurer-financial manager will invest $45,000. This is not enough

capital to operate the company for the first 6 months of business, and Supreme plans to take out a

5-year loan to protect its initial investment and keep the cash flow at an appropriate level to

cover startup fees and operating expenses. The office space is leased and office equipment is

leased to include computers, copy-fax business machine, maintenance, and IT technician on call.

Supreme wanted the convenience of a business machines company to be responsible for their

software and any machine breakdown that could occur including backup for stored files. This

was thought to be prudent for starting a new company. A note on the licensing fees of $256 plus

the $150 advertising fee to be in the paper as a new consulting business in the area, these fees

will be assumed by the administrative expense account. Supreme will plan to hire two more

consultants after the first two years of operation, and plan expansion to another office location

after five years if financial projections are sustained as expected. The economy is expected to


improve from the recession it has been experiencing based on past economic recoveries here in

the United States. The future for Supreme is optimistic and the staff are very enthusiastic about

its’ potential.


References

Abrams, R. (. (2012, October 24). Successful Business Plan: Secrets & Strategies 5th ed.

Redwood City, California, USA.

BuckConsultants. (2012, October 31). About Buck Our History. Retrieved from BuckConsults A

Xerox Company: https://www.buckconsultants.com/AboutBuck/History.aspx

Coutu, A. 2. (2012, November 15). Consulting Fee Rates/Consulting Fees. Retrieved from

Consultant Journal: http://consultantjournal.com/blog/setting-consulting-fee-rates

Evans, K. 1.-2. (2012, October 25). Pros and Cons of Employee Benefits. Retrieved from E-How

Money: http://www.ehow.com/about_4742254_pros-cons-employee-benefits.html

Government, F. (2012, October 25). Department of Labor Employee Benefits Security

Administration. Retrieved from Department of Labor:

http://www.dol.gov/ebsa/aboutebsa/history.html

Labor, U. S. (2012, November 12). Occupational Employment Statistics for Virginia. Retrieved

from Bureau of Labor Statistics: http://www.bls.gov/oes/current/oes_va.htm#13-0000

Monster, I. (2012, November 09). Workforce Management - What Employee Benefits Matter

Most to Job Seekers. Retrieved from Monster.Com: http://hiring.monster.com/hr/hr-best-

practices/workforce-management/employee-benefits-management/job-offer.aspx

2013 CLIENT & SALES FORECASTSales Break Even Commissions Total

January Cl i ents 5 $40,000 $62,569 $6,750 -$15,819February Cl i ents 5 $40,000 $62,569 $10,500 -$12,069March Cl i ents 6 $48,000 $62,569 $18,250 $3,681Apri l Cl i ents 6 $48,000 $62,569 $32,750 $18,181May Cl i ents 7 $56,000 $62,569 $41,500 $34,931June Cl i ents 7 $56,000 $62,569 $49,000 $42,431Jul y Cl i ents 8 $64,000 $62,569 $67,750 $69,181Augus t Cl i ents 7 $56,000 $62,569 $73,500 $66,931September Cl i ents 8 $64,000 $62,569 $83,000 $84,431October Cl i ents 10 $80,000 $62,569 $103,500 $120,931November Cl i ents 8 $64,000 $62,569 $113,000 $114,431December Cl i ents 5 $40,000 $62,569 $125,750 $103,181

Sales Break Even Commissions Total1st QTR Clients 25 $225,000 $200,772 $445,500 $469,7282nd QTR Clients 24 $216,000 $200,772 $560,750 $575,9783rd QTR Clients 26 $234,000 $200,772 $670,250 $703,4784th QTR Clients 23 $207,000 $200,772 $789,250 $795,478

YTD 2013 Totals

YTD 2014 Totals

Break Eve n Exp. $750,828 $803,088Sales $656,000 $882,000Commissions $725,250 $2,465,750

Total YTD Total YTD

2013 2014YTD $630,422 $2,544,662

2014 CLIENT AND SALES FORECAST

Total Commissions + Sales - Expenses

2013 Operating expenses $750,828/12 = Break Even Average

-$40,000

-$20,000

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

Janu

ary

Clie

nts 5

Febr

uary

Clie

nts 5

Mar

ch

Clie

nts

6

April

Clie

nts 6

May

Clie

nts 7

June

Clie

nts 7

July

Clie

nts 8

Augu

st

Clie

nts 7

Sept

embe

r Clie

nts 8

Oct

ober

Clie

nts 1

0

Nov

embe

r Clie

nts 8

Dece

mbe

r Clie

nts

5

Sales

Break Even

Commissions

Total

$0 $200,000$400,000$600,000$800,000

1st QTR Clients 25

2nd QTR Clients 24

3rd QTR Clients 26

4th QTR Clients 23

Total

Commissions

Break Even

Sales

Break Even Exp.,

$750,828

Sales, $656,000

Commissions, $725,250

2013 YTD Totals

Break Even Exp.,

$803,088

Sales, $882,000

Commission, $2,465,750

YTD 2014 Totals

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

2013 2014

2-YR Profit - Loss Totals

YTD


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