Employee Benefits Administration

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Benefits Administration Business Plan

Company Summary

EBA is a privately held Pennsylvania Limited Liability Company (LLC). Co-owners are Diane Davis and Cindy Wells. The office is located on Main Street, Morgantown, PA. This location was selected by the principals since it is a fast growing suburban area and is located within minutes from the Pennsylvania Turnpike, allowing quick access to surrounding growth areas.

2.1 Start-up Summary

The partners of EBA have spent almost a year planning this business venture. They have opened the office, and spent much time, energy, and their own funds in bringing the business this far.

The initial investment was used to purchase IBM laptop computers, software licensing fees for the Human Resources Information System, computer accessories and docking stations, small business education, seminars on current employee benefit trends, memberships in organizations, rent and security deposit of an office, and various other start-up costs.

Considering the forecasts predict an overall loss for the first year of business, EBA will follow avenues for obtaining a small business loan, preferably one guaranteed by the Small Business Association.

Start-up Expenses
Advertising - Brochure $430
Advertising - Business Cards $120
Bank - Cash $160
Computer Technician ( Consultant) $250
Dues and Subscriptions $450
Fax/Copier Combination $65
Furniture $500
Internet Access (DSL) $150
Insurance (Liability) $1,000
Laptop and Computer Accessories for LAN $4,370
Laptop Cindy $750
Legal Fees $500
Licensing (Software) $2,000
Office Expense $150
Phone System (Second Hand) $85
Phone Installation (Conestoga + Rapp) $500
Postage and Meter (Stamps, Meter, PO Box) $125
Printer $550
Professional Fees $500
Rent and Security Deposit $1,800
Seminars and OOP Expenses $2,000
SHRM - HR Comply - Legal Access $475
Telephone (Monthly) $748
Training (EBS) $2,400
Utilities $200
Web Hosting (Domain) $150
Total Start-up Expenses $20,428
Start-up Assets
Cash Required $11,000
Other Current Assets $0
Long-term Assets $0
Total Assets $11,000
Total Requirements $31,428
Start-up Funding
Start-up Expenses to Fund $20,428
Start-up Assets to Fund $11,000
Total Funding Required $31,428
Non-cash Assets from Start-up $0
Cash Requirements from Start-up $11,000
Additional Cash Raised $0
Cash Balance on Starting Date $11,000
Total Assets $11,000
Liabilities and Capital
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Planned Investment
Cindy Wells $15,714
Diane Davis $15,714
Other $0
Additional Investment Requirement $0
Total Planned Investment $31,428
Loss at Start-up (Start-up Expenses) ($20,428)
Total Capital $11,000
Total Capital and Liabilities $11,000
Total Funding $31,428

2.2 Company Locations and Facilities

The principals of EBA chose Morgantown to locate the office, not only for its proximity to the Pennsylvania Turnpike and the growth potential of the area, but also because of a regional telephone service's capability of offering DSL, high speed Internet access. DSL is extremely important considering EBA is using an Application Service Provider to house the Human Resource Information Software (HRIS) system. Accessing client information is instantaneous using DSL; as opposed to normal dial-up access which could take much longer.

EBA has signed a one year lease agreement for the 500 square foot office space for a monthly rental fee of $600. The office is located on the second floor of a small office building. The principals have already purchased a phone system, fax machine with limited copier capability, and a printer.

Recent years have seen much industrial and residential expansion in the northern and western suburbs of the Philadelphia, PA area. In under one hour, traveling east or west, employees of EBA can be in the York, Lancaster, Reading, Allentown, Exton, and Philadelphia areas.

2.3 Company Ownership

The principals of EBA share equally in the ownership. Although each partner has different strengths within the Human Resources field, cross training is a very important part of their management plan. It is very important that each can handle every aspect of the business, especially in the start-up years. As the company grows and adds staff, the principals will diversify into other equally strategic positions.

The principals decided to establish EBA as an LLC, Limited Liability Company, based on their investigation of liability and tax treatment.