Entrepreneurship: A Business Plan for Payroll Management Company

This presentation outlines a comprehensive business plan for a payroll management company, targeting small and medium-sized enterprises (SMEs). It begins by highlighting the importance of accurate payroll systems for employee retention and the trend of outsourcing payroll functions. The presentation then explores the business opportunity, emphasizing the low capital requirements and the increasing demand for payroll solutions. It details the company's innovative approach, focusing on error-free payroll calculations, accessible information, and timely payments. The business model canvas is used to describe key partners, activities, value propositions, customer relationships, and revenue streams. The plan also covers the company's growth strategy, leadership, and the use of latest software and hardware to ensure service excellence. A feasibility study confirms the business's potential, and the presentation concludes by summarizing the benefits for clients, including cost savings and high accuracy levels in payroll management.

Slide 2: All the small and big companies are endeavouring are establishing flawless payroll
systems in order to ensure that the employees are getting correct amount of salary at the right
time. If the employees do not get the correct amount of salary they would be affected and
demoralised and employee retention will be lesser. The various functions that is performed by
the payroll managers and the system overall are as payslip, loan, payroll journal, deductions,
allowances. Essentially employees work for payment.
Slide 3: The latest trend about payroll management system is outsourcing the total process to
other companies which are specialised in the process of payroll management. These
companies are specialised in the process of payroll management and reduces the burden from
the companies. The payroll management is a long and detailed process which is human
intensive. Hence by appointing the outsourced companies these activities are reduced.
However there are challenges that are still associated with the payroll management process.
There can be wrong calculations or deductions because of errors in attendance system within
the company. There can be transaction failures and similar other challenges.
Slide 4: In the recent times the start ups are choosing businesses which takes lesser capital to
start. They are utilising more technological knowhow and lesser use of inventory. The
business of providing payroll solution is typically a business of that nature. It requires less
capital to setup and just human resource with technical knowhow is enough to set up a
payroll management company. The small, medium and big companies are outsourcing their
payroll to these companies.
The manual payroll systems are very labour intensive, time intensive and possibility of error
is high. The human resource department of the companies get entangled in all these clerical
works and cannot give attention to employee quality enhancement and retention. Therefore
they outsource the job.

Side 5: Many software are there which provides the service of payroll management and
providing the data of the employees into these softwares would be enough to get the desired
results. Here is a similar software and its primary interface. However these software are
expensive and it requires professionals to operate them. Therefore the companies do not
themselves involve in such function and outsource their payroll. The companies which
provide payroll management services use such similar software to provide the service.
Slide 6: The idea is to establish a company that will provide payroll management services to
the client companies in a innovative error free manner. The Payroll Management Company
will be able accurately calculate the payroll, make the information accessible and issue pay
cheques within the stipulated time. The company which are outsourcing their payroll will be
free from the long and strenuous process of payroll management and they can focus their
attention on quality.
Slide 7: Software developers, innovators and other experts will together work towards
developing the software which will provide perfect solution to the companies which are
outsourcing their work. Payroll Management Company will also work with cloud application
companies that will enable it to store huge amounts of data without any difficulties. The
innovation will lie in the speed with which the process will be carried on and the errorfree
solution that will be provided.
Slide 8: The Business Model Canvas can ideally describe the business process and how it will
gain competitive advantage over others. Key Partners of the business are Software
Developers, Cloud Application Companies. The Key Activities it will carry out are
Recruitment, Processing of Monthly Payslips, Fund and Medical Aid, Reconciliation, Taxes
Calculations, Processing third party payments. The factors which will add value to the

business are Fair Prices, Reduced Risks, Confidential data storage, Freedom to choose salary
transfer options.
Slide 9: The company will focus on customer relationship through Company’s Website,
Advice on best payroll management practices , Updates on the labour laws , Training. The
company will target the customers who are the Small and medium sized companies. Various
channels utilised by the company to communicate are Website, Emails, Physical Addresses.
Slide 10: The resources which are key for the success of the company include Qualified
Employees , Software, Latest technological gadgets. The various places where the company
has to invest are Employee salary, software subscription, facility costs. The company will
earn through Sales and service of software.
Slide 11: The company will be successful because of various factors that will make the
company stand out from its competitors. These factors are Growth strategy created by the
company. The leadership of the company . Latest software and hardware. Perfecting the
services. The leadership will ensure that the growth strategy is finely implemented and
properly planned. Latest software and hardware will provide the required fineness in their
service.
Slide 12: Proper feasibility study is conducted on the company that ensures that the business
idea evolved is feasible and has good potential. The firm is focused on providing payroll
management services to suit the budget of the small companies. Therefore the clients would
not have problem or dilemma in taking the service. The leadership of the company has
already determined the source of capital and identified potential investors to enable the
company to start without any difficulties. Hence the setting up process of the business is well
planned and would happen smoothly. The software to be used is affordable and robust at the
same time.

Slide 13: To conclude, this is one of the emerging areas of conducting business. There is huge
potential in the business mentioned. The company will provide best service in the sector.
Some of the benefits that clients will acquire after using the company’s services include cost
saving, high accuracy levels of their payroll systems and accurate calculation of benefits and
taxes