Massive Client Potential of B2B Brand Appealed to Pennsylvania Couple
When Ed and Cathy Carroll (above) looked into owning and operating a business, they sharpened their focus on an affordable B2B model that would play to their strengths and required minimal employees. They settled on the Payroll Vault franchise, which does payroll and workforce management for small businesses.
The Havertown, Pa., couple appreciate that the potential client base for Payroll Vault franchisees is huge. There are more than 33.1 million small businesses employing 61.7 million Americans, according to the Small Business Administration. “Everyone needs payroll,” Cathy says. “The opportunities for new clients are really unlimited.”
Evaluating Franchises
The Carrolls hadn’t considered a franchise until a franchise consultant reached out on LinkedIn. “We began to look at the different types of franchise opportunities,” Cathy says. “We knew we didn’t want to hire a big team as I had managed teams of 25-plus for most of my career. We wanted a business that would not require a large expense to build out a storefront. We also were looking for something that fit our skill set. I had a career in retail management and enjoyed the operations side of the business. Ed had a career in medical sales.
“After we decided our interest was a business-to-business franchise, we reviewed a number of financial disclosure documents. We narrowed our selection to three opportunities and had discovery calls with the candidates. After those discussions, we focused on learning more about the Payroll Vault franchise. The opportunity checked a lot of boxes. But the most important thing was we felt they company had values that aligned with our values, including integrity, community, generosity, collaboration and service.”
Covid Crisis
The Carrolls quickly faced a monster challenge with their franchise, which launched in late 2019. “The global pandemic crippled the business community five months after we bought our franchise. We lost a full year of being able to meet in person and develop relationships,” Cathy says.
But the couple kept moving forward. “The opportunities to meet via Zoom were everywhere, and we took full advantage of the time to let people know about Payroll Vault. Franchise headquarters also did a great job of providing information regarding the Paycheck Protection Program and Employee Retention Credit,” she says. “As we shared this information, we gained the trust of the folks that we met on Zoom. When Pennsylvania finally opened back up for business in July of 2021, we had a good base of people in the business community who were willing to talk about their payroll process with us.”
Running the Business
The Carrolls divide their day-to-day responsibilities. Ed does sales, benefiting from his membership in Business Network International (BNI), which helps businesses grow through referrals. “He follows up with the people he meets to learn more about their businesses and see how we can take the pain out of their payroll process. He follows up and closes sales every week.” Cathy handles operations. “The early part of the week is full of payroll processing, and the later part of the week is dedicated to projects including onboarding new clients. I try to get out twice a week to do networking and I find new clients doing that.”
They consistently attend business groups’ meetings and visit with local organizations. “That’s the secret to being top of mind. No one wakes up one day and says, ‘I think I will change my payroll company.’ The timing needs to be right, which is why the seeds that we plant through our networking and marketing are so important,” Cathy says. “We need to be top of mind when clients decide to change their provider.” When needs and timing align, Cathy says the Payroll Vault franchise becomes a valued player on the teams of “small and even very small businesses that are underserved by big payroll companies.”
Pluses of Payroll Vault Franchise
Payroll Vault offers these advantages to franchisees:
- Recurring revenue from multiple streams in addition to payroll, such as filing of quarterly payroll client taxes, handling W-2 and 1099 forms, and workforce management services involving human resources, pay-as-you-go worker’s compensation and attendance monitoring of clients’ workers.
- Home-based model.
- “We are our own boss,” Cathy says. “We are in control of our destiny. We reap the rewards of our efforts as we build our business.”
- Training on Payroll Vault’s easy-to-use systems provides lets franchisees efficiently manage their businesses.
- No accounts receivable, credit cards, checks or inventory.
- Payroll Vault franchisees do not need special certifications.
- Recession-resilient.
“Ed always says his only regret is we did not do this sooner!” Cathy exclaims. The 17-year-old Payroll Vault franchise, which has 62 units, is expanding nationwide. Entrepreneurs need about $50,000 to $65,000 to launch.
For more information, visit https://franchiseexpert.com/franchise-evaluations/payroll-vault/.
