Table of Contents
Key takeaways:
- Brokers often overlook small businesses in favor of larger customers.
- However, offering benefits to small and niche businesses is a strategy that can pay off, as these businesses often use perks to attract and retain top talent.
- For brokers looking to work with small businesses, it’s essential to adopt a consultative approach and offer products that cater to the specific needs of smaller organizations.
From a broker’s perspective, chasing down large accounts sounds like a winning strategy.
And it works, with these large companies often spending more on benefits. However, there is something to be said for diversifying your customer base with some small and niche businesses.
Here’s why tailoring your approach for small business employee benefits could pay big.
Small and Niche Businesses: A Strong Potential for Growth
Small businesses are a sizable market with more than 370,000 of them in Oklahoma alone. They also employ a large portion of the population, with 55% of job creation over the past decade coming from small businesses.
For brokers, focusing on small and niche businesses has some clear advantages.
Building a Diverse Customer Base
Diversifying your customer base is important for building a resilient business as a broker. By targeting small businesses, you can easily get exposure to a wide range of industries, including construction (the most common type of small businesses in Oklahoma), the oil and gas industry, or Oklahoma’s agricultural sector.
Local Focus
Another benefit is that small and niche businesses often have a strong local focus. Their ties to the community can support word-of-mouth marketing for you.
Demand Is High
Small businesses need benefits. They’re competing against larger companies to attract and retain talent, and they often do so by offering the best benefits packages they can.
With large brokerage firms not viewing them as valuable customers, it can be challenging for small business owners to obtain the advice and guidance they need. This creates an opportunity for you.
Potential for Growth
Successful small and niche businesses can experience rapid growth. A small sale now for niche business vision plans could turn into a major renewal a few years from now.
Plus, one often-overlooked advantage of working with small businesses is the potential for lasting relationships. Unlike large corporations with rotating HR departments and frequent broker reviews, small business owners tend to value loyalty and consistency above all else. When you prove yourself as a trusted advisor who understands their unique challenges, you’re likely to retain that client for years.
Flexibility and Quick Decision-Making
Small businesses can also be more manageable in terms of decision-making. With fewer administrative layers, you can often reach the decision-makers directly. Business owners will evaluate your proposals and pick products within days.
How to Offer The Right Small Business Employee Benefits
When helping small businesses build benefits packages that make sense for their needs and budgets, options like premium plans and products with group discounts may not be a good fit.
Instead, you should focus on simplicity and value:
- Vision plans are a great entry point for businesses building a benefits package from scratch. It’s a perk that is affordable and has a high impact.
- With prepaid plans, you can offer a solution with transparent savings and straightforward implementation. Keep in mind that small businesses often lack an HR team, and the business owner typically handles benefits.
Small businesses are also looking for customized solutions. Because it’s such a diverse field with organizations that vary a lot in terms of size and focus, taking a consultative approach to recommending employee benefits for small companies pays off.
Once you’ve taken the time to learn more about a business’s unique needs, you can recommend the best products for this organization. Doing so is easier if you have built a portfolio with a diverse selection of products and are familiar with them.
Why VCD Plans Are Great for Small Businesses
If you’re looking to grow your portfolio of vision products with options that make sense for small businesses, VCD of Oklahoma can help.
We offer prepaid vision plans that are flexible and easy to navigate. With our plans, employers can offer affordable benefits that increase employee satisfaction. Employees save at on essential eye health services with transparent savings and can use their vision benefits at one of the largest networks of optometrists in Oklahoma.
Learn more about VCD plans and becoming a broker here.
FAQ
Why do prepaid plans make sense for small businesses?
Prepaid plans offer transparent savings with no surprises, making budgeting easier for small businesses. They’re also simple to implement and administer, which is a crucial advantage for companies without dedicated HR teams.
What do small business owners look for when shopping for benefits?
Small business owners prioritize affordability, simplicity, and value above all else. They also look for perks that will help them compete with larger companies for talent.
What makes vision plans a good starting point for small businesses?
Vision plans are an ideal entry-level benefit because they’re affordable, easy to understand, and highly valued by employees.
