Don't let the word "small" mislead you — there's nothing small about them. Their numbers are big, they're growing and they serve as the lifeblood of the U.S. economy. And, most importantly, they need your help.
Yes, I'm talking about small businesses with fewer than 100 employees. According to LIMRA, they make up about 98 percent of all employers. And, according to Moody's, with more than 5.6 million small businesses employing over 64 million people, they encompass 55 percent of the working population. That's big.
The struggle with most small businesses is that they have limited or no human resource staff to help evaluate benefit options for their employees. And, because many of them don't currently offer employee benefits, that translates into an untapped market for you.
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Here are a few suggestions to help get big results.
- Small business owners rely on and nurture relationships. Partner with attorneys, accountants and local associations to connect with these business owners.
- Offer your help in meeting their core benefits needs first, such as medical, dental, life, disability and vision as foundational elements of the program. Consider voluntary options if cost is a limiting factor for the employer. Then, expand coverage later to include supplemental benefits like critical illness to fill gaps. (See my blog from 2013 on prioritizing benefits.)
- Small businesses don't view themselves as small — they crave choice and flexibility just like everyone else. So be sure to tailor a package that meets their specific objectives. While it can be simple, be sure it feels customized to the employer. Don't suggest a generic pre-packaged benefit design. (See my blog from 2013 on how to tailor benefits to the culture of the organization.)
- Partner with a carrier that has expertise in the small case market — one that offers creative product solutions and can provide flexibility and robust support for both you and your clients. This is critical in the small case market.
So, don't let the word "small" deter you from going after this market segment. It's big business and, done well, will produce big results and help you expand your client base.
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