The National Small Business Association

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• The National Small Business Association
• www.nsba.net

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Small Business Defined
According to LIMRA

• The best opportunities for growth exist at the
  low end of the employer market.
  
• But small client servicing costs often exceed
  small client revenues.
  
• Therefore, a new strategy specifically for the
  small business market is need to make the math
  work.
  

Source http//www.employeebenefitadviser.com
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Small Business Defined

• The group estimates that the core group insurance
  market stands at about 624 billion annually,
  which includes both existing enrollees and
  potential enrollees.
• Current enrollees account for 410 billion of the
  market, leaving 213 billion of total unrealized
  market premium for the potential enrollees at
  companies.
• Many of them small firms, that do not currently
  offer benefits.
  

Source http//www.employeebenefitadviser.com
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Employers and Non-Employers

• The following Small Business statistics are
  taken from the most recent information available,
  the 2003 United States Economic Census
  
• Source http//www.census.gov/epcd/www/smallbus.ht
  ml

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Employers and Non-Employers

• About three quarters of all U.S. business firms
  have no payroll. Most are self-employed persons
  operating unincorporated businesses, and may or
  may not be the owner's principal source of
  income.
• Source http//www.census.gov/epcd/www/smallbus.ht
  ml

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Employers and Non-Employers

• Because non-employers account for only about 3.4
  percent of business receipts, they are not
  included in most business statistics. For
  example, most reports from the Economic Census.

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Employers and Non-Employers

• Since 1997, however, non-employers have grown
  faster than employer firms.

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Employers and Non-Employers

• Since 1997, however, non-employers have grown
  faster than employer firms.

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Employers and Non-Employers

• Employers and Non-employers, 2002
• Total Firms 23,343,821
• Non-employer Firms (firms with no payroll)
  17,646,062
  
• Employer Firms (firms with payroll)
  5,697,759

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Establishments

• Total Firms 24,846,832
• Non-employer Firms (firms with no
  payroll) 17,646,062
  
• Employer Firms (firms with payroll) 7,200,770

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Sales or Receipts (1,000)

• Total Firms 22,832,560,524
• Non-employer Firms (firms with no payroll)
  770,032,328
  
• Employer Firms (firms with payroll)
  22,062,528,196
  

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Small Business Defined

• Small Business is defined by Revenue and/or the
  Number of Employees in Specific Industries by
  Industry Code (SIC).
  
• For Example

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SIC Code Categories

• Manufacturing
• Mostly 500 employees or less
• Construction (Revenue)
• Wholesalers
• (100 employees or less)
• Finance and Insurance (Revenue)
• Retail (Revenue)
• Source http//www.irs.gov/formspubs/page/0,,id10
  768,00.html

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Small Business Defined

• For the purposes of our discussion we are going
• to classify Small Business as those companies
• with 9 or less employees

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Small Business Size Firms

• Employer and Non-employer Size Firms, 2003
• Non-Employer Firms 18,649,114
• Firms with 1 to 4 employees 2,734,133
• Firms with 5 to 9 employees 1,025,497
• Total 22,408,744
• All Others 2,032,880
• Source http//www.census.gov/epcd/www/smallbus.ht
  ml
  

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Small Business Size Firms
Most Benefits Marketing producers are chasing
these same 2,032,880 businesses with 20 or more
employees while largely ignoring the 22,408,744
small businesses that desperately need their
services
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Small Business Size Firms
Especially, the fastest growing segment of the
market the 17,646,062 Non-Employers (firms with
no payroll).
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The Platform
The National Small Business Association can
provide you with the New Strategy to help you
to be more effective in making the market
profitable for you?
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The Platform
Calling on small business people
They are easy to reach You almost always talk t
o the decision maker In most cases, they are in
desperate need for your products In most case
s, it is a one interview sale
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The Platform
Calling on small business people
The businesses are easy to enroll
In most cases, no payroll administrator to
deal with Instant credible Third Party influe
nce
The NSBA gives you a platform on which to
approach to this market
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The Platform
www.nsba.net Small Business Resources Smal
l Business Legislative Updates
Small Business School Scholarships Discount P
rograms Small Business Loans and Credit Lines
Business Services Personal and Employee Benefits
Single Source Billing for Benefits
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The Platform
Third Party Influence Hello, this is (Your
Name) from the National Small Business
Association. Recently businesses like yours have
become eligible for membership in the
Association. The purpose of my call is simply to
set a time that is convenient to explain to you
the benefits of Association membership. Would
next ...
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The Platform
Contact Methodology (Prospecting Tools) Wh
at are the benefits? Well, such things as Fin
ancing and Credit Lines, affordable medical
plans, college scholarships for you, your
children or grandchildren, dental insurance, and
much more. Would next ?
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The Platform
Benefits The NSBA is not a licensed insuranc
e agency. Rather
It sponsors and/or endorses products
marketing companies and/or individual
producers Provides Single Source Billing for c
arriers, marketing companies and TPAs.
For Example
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The Platform
Business Services Small Business Loans
Business Lines of Credit Business, Government an
d Legal Forms Small Business School Discounted
Business Supplies and Equipment
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The Platform
NSBA Sponsored Employee Benefits Dental In
surance Medical Discount Plan Mini Med Plan
Major Medical Insurance Short Term Medical
Insurance Supplemental Benefits or Use yo
ur own products using our single source billing
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The Platform
If you prefer to use your products and carri
ers the NSBA has available Single Source Billin
g
Use your products Use Your Carriers No Cost To Y
our Carriers No Cost To You Small Administration
Fee For Your Client

NSBA is not an insurance agency so it is not in
the
commission stream.
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The Platform
For More Information Contact Bill Lachapel
le nsbainfo_at_cox.net 866-800-3416 toll-free 4
80-488-o905 fax
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