Why Payroll Vault's Unique Value Proposition Makes It a Special Franchise for Entrepreneurs
If you consider yourself an entrepreneur, or even if you reject “hip terminology” and simply consider yourself business-minded and a business-builder, no one needs to tell you how many factors go into selecting the right franchise to buy.
There’s the company’s track record of support for owners, its marketing and branding, its entry costs and ongoing fees, its competitors, its growth metrics and outlook, and tons of other objective and subjective criteria.
But there’s always the holy grail of guiding lights, that beacon of “must move on this now,” which all of us seek when deciding on a franchise to buy: a truly unique value proposition in the market. Welcome to Payroll Vault.
Most small businesses suffer when it comes to their payroll – either they play catch up doing payroll in-house themselves, or they hire an enormous HR company who offers payroll services on the side and often treat their small business customers to faceless 1-800 numbers. But Payroll Vault is unique in its offering – a local payroll service for small businesses, working with clients to meet their needs where they stand today, and preparing them for tomorrow.
Market Demand and Business Need
The most recent US Census showed that firms with fewer than 100 workers accounted for 98.2 percent of businesses in the United States. But somehow, the majority of companies that provide payroll for businesses are focused on a much larger clientele, offering services to smaller companies as a one-off from their main focus. Which is specifically rough when you think about how quickly small businesses can become overwhelmed: depending on the type of business, any number of continuing demands overtake managers on a given day, week, and month of operation.
Hiring, doing inventory, managing profit and loss, and so many other tasks and duties consume a small-business owner’s time. As the business begins to grow and take on more employees, payroll is consistently one of the areas that becomes the most daunting. Intricacies of tax law and much more not only can require a bookkeeper’s deep focus but also quickly become a quagmire.
Technological advances and legislation frequently spur the evolution of labor law. As a result, payroll processing can be incredibly tedious and time-consuming for small to mid-size businesses. Further, operating an efficient in-house payroll system requires a large investment on the front end.
Consequently, outsourcing of payroll services is a multi-billion-dollar — and growing — industry. It’s a field that takes the onus off the business to keep abreast of ever-shifting compliance standards.
A study by research firm Technavio found that the payroll outsourcing services market has the potential to grow by $5.01 billion from 2020 through 2024. Taking advantage of this growth requires offering something unique.
Options for Operators
Accounting firms that help business owners with their books often handle payroll duties as well, but as a business grows, the business’s needs may outpace what an accountant or an in-house bookkeeper can handle.
Businesses in the enviable position of such growth often look to payroll processing companies for help. These firms transfer pay (monthly, bi-weekly, or whichever schedule the business prefers) into the employees’ accounts or print physical checks. They also take care of preparation of tax statements and making tax payments, as well as tax filings such as W2s and 1099s.
The market includes big payroll brands such as ADP and Paychex. However, the accountants who serve businesses’ other bookkeeping needs sometimes do not like to work with big-box payroll brands.
An Answer for Small Businesses
The only payroll service franchise model is Payroll Vault, which ranks among the Entrepreneur 500 top franchises — a list formed from evaluating companies based on costs and fees, size and growth, support, brand strength, and financial strength and stability.
Further, Franchise Business Review named Payroll Vault as one of 2020’s Top 50 Franchises for Women in the financial and tax category.
Payroll Vault’s unique value proposition is simple. It focuses on payroll and workforce management services to assist small and mid-sized businesses with success and efficiency proactively. The typical client has 10 to 50 people on the payroll but can range to a much higher number. Clients benefit from personalized service, rather than calling the 1-800 number of a faceless corporation.
The brand also offers human resources services.
The Payroll Vault model of recurring monthly revenue is appealing to franchisees, and the concept is scalable for entrepreneurs looking to open multiple locations.
Franchisees Who Are a Fit
The kind of entrepreneurs primed for success with a Payroll Vault franchise includes those with a sales or accounting background. Payroll Vault can teach the owner the rest of what they need to know to excel.
Payroll Vault is also an excellent option for owners who already own a number of other franchises, be they restaurants, retail shops, or other concepts. These franchisees not only can market their services to businesses around them but also utilize their Payroll Vault franchise to handle payroll processing for all their own businesses.
The potential for exponential efficiency makes Payroll Vault a special concept to add to the portfolio; what formerly was an expense becomes additional revenue.