Are you like most business owners, with limits on your time and budget? Would you like an efficient and cost-effective way to reduce your expenses?
If your answers are “yes” and “yes,” then you may want to develop a relationship with a Third Party Administrator (TPA).
A TPA is a broker that handles administrative duties for companies that don’t have the time or financial resources to manage them internally. TPAs can offer professional cost savings advice and act on your behalf to buy or sell services from companies operating within vertical markets.
A good TPA can be worth their weight in gold. Their success is based on knowing how to match your business with the comparative markets that provide high-quality services at a competitive price. Consequently, rather than doing the research yourself, you can have a TPA do it for you, which can be an enormous savings in both time and money for a small business.
Here is more good news: most TPAs won’t charge you for this service!
TPAs maintain a network of service providers that offer them a modest commission for making their services available. Everybody in these relationships wins.
Therefore, a TPA will not only improve your company’s financial bottom line, but you will also rest easier knowing that your business is running efficiently in the areas where you don’t have (or want to have) this expertise.
It’s really that simple.
So, let’s get down to the specifics. If you own or operate a business with limited time and resources (as so many of us do), you know firsthand how hard it is to keep up with the rapid pace of advancing technology. Why? Because research takes up a lot of time.
Qualified Third-Party Administrators can save you that time!
The fact is that 2019 promises to surpass last year’s incredibly rapid pace of developing new and evolving technologies for SMBs.
How does technology continue to accelerate so quickly year after year? American inventor Ray Kurzweil may have the answer. He calls it the “Law of Accelerating Returns.” Kurzweil believes that new technology leads to even newer technology by creating a system of building blocks that lay groundwork to build more advances, allowing technology to evolve faster and faster over time. As long as the innovations are profitable, they will perpetuate on their own and will not slow down anytime soon.
So, in this constantly shifting environment, how do small business owners keep pace? Here are a few areas where a Third-Party Administrator may help your company hold its competitive edge
1. Review your internet and phone plans. Have a TPA look at your existing service and compare it to what else is out there. If you have a second phone line for faxes, consider taking advantage of an inexpensive internet-based fax service instead.
2. Have a TPA look at your health care policies to see if switching to higher deductible plans will help you, and your employees, save money. There can be great value found in shopping multiple providers, and this will help you decide which plan is best for your company.
3. With all the current options available for energy and utility providers, not to mention variable and fixed rates involving annual contracts, a TPA is almost a must! Provide your TPA with your recent bills, and they will show you how to significantly reduce electricity and gas usage. Many will also provide information on how to save energy, such as by installing automatic light switches and programmable thermostats. A TPA may even show you how you can avoid disreputable energy resellers (please be assured, there are plenty of them out there).
4. TPAs can help you choose efficient cloud-based services for functions such as customer relations management and invoicing. They’ll advise you on how to optimize your security systems and help prevent data failures.
5. Have your TPA evaluate your insurance policies. They will make sure you have the right type of coverage and will also benchmark your premiums.
6. Have them assess your 401(k) and other retirement plans, review the plan expenses, and assure you that your plan is ERISA compliant.
7. Some TPAs are experts in efficiency and will help evaluate your manual processes for possible automation or outsourcing solutions. Automation saves you your most valuable resource: time.
Freeing up your time allows you to do the important things within your business that will provide you an edge over your competitors who are trying to do everything themselves.
TPAs will also consider the cost your business is spending on labor, materials, equipment, and overhead versus what you would pay a service provider to handle certain operations for you. Outsourcing is a good tool when your staff doesn’t have the time or expertise to manage a task or project.
Odds are that the right TPA will provide cost-saving services for your company’s bottom line, allowing you that all-important peace of mind that comes from knowing your business is running at peak efficiency and that all your bases are covered.
As the rapid pace of technological advancement continues, a small investment of your time with a professional TPA will pay valuable dividends for many years to come.