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Free VC Directory

With any B-Plan Purchase
425 Page Capital Directory
Through Nov. 30

Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2020

Business Startup Guides
Checkout our new sister site!

Free Payroll Services Company Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!

Please note that the financials in this complete free business plan are completely fictitious and may not match the text of the business plan below. This free business plan demonstration purposes only. If you are interested in purchasing the completed editable MS Word and Excel documents for this business plan, please click the button below! Also, the text of the business plan is formatted with a fully automated table of contents.

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It should be noted that there is no special software required to use these templates. All business plans come in Microsoft Word and Microsoft Excel format. Each business plan features:

  • Excecutive Summary
  • Company and Financing Summary
  • Products and Services Overview
  • Strategic Analysis with current research!
  • Marketing Plan
  • Personnel Plan
  • 3 Year Advanced Financial Plan
  • Expanded Financial Plan with Monthly Financials
  • Loan Amortization and ROI Tools
  • FREE PowerPoint Presentation for Banks, Investors, or Grant Companies!

1.0 Executive Summary

The purpose of this business plan is to raise $100,000 for the development of an outsourced payroll management company while showcasing the expected financials and operations over the next three years. Payroll Services, Inc. (“the Company”) is a New York based corporation that will provide payroll and limited outsourced human resources management to customers in its targeted market. The Company was founded by John Doe.

1.1 Products and Services

Payroll Services is primarily engaged in providing backed payroll management services for other businesses. The Company manages direct deposit, check issuance, W-2 distribution, and other functions related to a business’ payroll. These services allow small and medium sized businesses the ability to save a significant amount of money on managing the backend payroll and administrative functions associated with a having a small to moderate personnel base. As Payroll Services, Inc. becomes integral to a client’s operations, the Company is in a unique position to operate profitability during most economic climates. Additionally, the Company has the ability to integrate new employee management solutions into its core menu of services. The third section of the business plan will further describe the services offered by Payroll Service, Inc.

1.2 The Financing

Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.

1.3 Mission Statement

Payroll Services, Inc.’s mission is to become the recognized regional leader in its targeted market for outsourced payroll management services services.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the accounting and payroll industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.

1.5 Sales Forecasts

Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.

1.6 Expansion Plan

The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target small and medium sized businesses within the target market.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Payroll Services, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, Payroll Services, Inc. requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:

2.3 Investor Equity

Mr. Doe is not seeking an investment from a third party at this time.

2.4 Management Equity

John Doe owns 100% of Payroll Services, Inc.

2.5 Exit Strategy

If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of Payroll Services. Based on historical numbers, the business could fetch a sales premium of up to 4 to 6 times earnings.

3.0 Products and Services

Below is a description of the payroll services offered by the Company.

3.1 Payroll Services

Payroll management will be the primary function of the Company as it provides recurring streams of revenue for this business. Through this segment, the Company is able to provide all services related to disbursements of payroll checks, tax administration (for both the employee and the client), as well and critical reporting functions that allow mangers to disseminate their financial status. The Company will also provide direct deposit for all employees that wish to enroll in this program. This segment of the business is also important because it provides the Company with the ability to easily obtain credit facilities against the recurring revenues. Payroll Services, Inc. can then use these credit facilities for expanding further through organic/marketing growth and through acquisition of companies that provide similar services throughout the target market.

3.2 Future Services

In the future, the Company may seek to expand its menu of services to include health, dental, and vision insurance management as well as other core human resource functions such as 401(k) management. This segment of the Company could allow the business to expand at a very rapid rate of growth. Once Payroll Services, Inc. establishes its client base, it would be very easy to offer these services to the Company’s existing clients.

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the payroll and outsourced human resources industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2010, at which point the economy will begin a prolonged recovery period. However, payroll companies tend to operate with substantial economic stability as small and medium sized businesses continue to have employees despite deleterious economic conditions.

4.2 Industry Analysis

In the United States there are 13,000 companies that specialize in the management of human resource and payroll functions. Each year, these businesses generate more than $4.7 billion dollars per year, and employ more than 113,000 people. Additionally, these businesses provide over $2.6 billion dollars of payrolls. The growth trend among these businesses has been extraordinary over the last five years as many small and medium sized businesses have discovered that it is far less expensive to maintain an outsourced payroll departments rather than to keep these operations in house. The annualized growth rate over the last five years for firms entering this market has been 2.4% per year. However, over the same time period, the revenues collectively generated by these businesses have exceeded 13% per year. The market suppliers of these services have not yet increased with the rate of demand. Management expects that this trend will continue as more businesses find it economically feasible and beneficial to outsource their payroll needs to third party firms.

4.3 Customer Profile

Payroll Services, Inc. targets two segments of companies for its outsourced payroll functions: small businesses and medium sized businesses. Each of these segments has a different payroll services need, and Management has tailored its programs to provide clients with exactly what is needed for their business.

4.4 Competitive Analysis

This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.

5.0 Marketing Plan

Payroll Services, inc. intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of Payroll Services.

5.1 Marketing Objectives

  • • Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.

  • • Establish relationships with accountants within the targeted market.


5.2 Marketing Strategies

Foremost, the Company intends to develop a network of commissioned sales agents that will approach companies within the target market area. These agents will be provided with a small monthly stipend and commissions for each new client obtained for the Company. During the first year of operation, the Company intends to hire two commissioned agents that will solicit business from companies that have 10 to 50 employees. To a limited extent, these agents may use cold calling to solicit additional businesses from small and medium sized businesses that operate within the target market. The Company will also maintain an informative website that allows potential clients to see the services of the Company, information about the company’s services, and how to reach a sales executive. The Company intends to increase the visibility of this website by placing the domain name among several prominent search engines. Finally, Payroll Services, Inc. will purchase lists of companies that have recently incorporated in the target market. The Company will then make contact with these businesses through direct mail and cold calling campaigns to see if they are interested in using the Company’s outsourced payroll services.

5.3 Pricing

In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.

6.0 Organizational Plan and Personnel Summary

6.1 Corporate Organization

6.2 Organizational Budget

6.3 Management Biographies

In this section of the business plan, you should write a two to four paragraph biography about your work experience, your education, and your skill set. For each owner or key employee, you should provide a brief biography in this section.

7.0 Financial Plan

7.1 Underlying Assumptions

  • • Payroll Services, Inc. will have an annual revenue growth rate of 16% per year.

  • • The Owner will acquire $100,000 of debt funds to develop the business.

  • • The loan will have a 10 year term with a 9% interest rate.

7.2 Sensitivity Analysis

The Company’s revenues are moderately sensitive to changes in the general economy. During times of economic duress, the Company may have issues obtaining new accounts which will increase the revenues of the business. However, the business generates recurring streams of revenues from providing ongoing service to its clients, and in the event of an economic recession, the Company will be able to maintain profitability with a cash flow positive position.

7.3 Source of Funds

7.4 General Assumptions

7.5 Profit and Loss Statements 

7.6 Cash Flow Analysis


7.7 Balance Sheet


7.8 General Assumptions

7.9 Business Ratios

Expanded Profit and Loss Statements

Expanded Cash Flow Analysis