Enrolled Agent Business Plan and SWOT Analysis

Enrolled Agent Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Enrolled Agent Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start an Enrolled Agent business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

Enrolled agents serve a very important function as it relates to ensuring that individuals have their taxes completed properly and submitted to the proper authorities. One of the nice things are operating as an enrolled agency firms that these businesses are relatively immune from negative changes in the economy much like their certified public accountant counterparts. The primary difference between an enrolled agent and a certified public accountant that he enrolled agents specifically specializes in tax reporting and tax advice. Most importantly, enrolled agents have the ability to represent their clients in front of taxing authorities. A certified public accountant has the ability to certify financial statements will rendering a host of other services that are not directly related to taxes. It should be noted that many times enrolled agents and certified public accountants work hand-in-hand with each other as it relates to managing a small business or individuals tax matters.

As it relates to the start up cost for a new enrolled agent practice, the startup costs are very low. Typically, these businesses can be stored for as little as $10,000 or as much as about $50,000 depending on the location, size of the office, working capital needs, and other related expenses to establish an effective practice. Most importantly, these businesses are typically able to generate profits very quickly given that this is a business service operation and revenues that are produced are extremely high margin. As it relates to the gross margins generated, most enrolled agents are able to generate 90% to 97% gross margins depending on whether or not they accept credit cards and their bad debt expense. One of the nice things out these businesses as well that there are high barriers to entry given that the individual must pass the enrolled agency exam is administered by the Internal Revenue Service and the Department of Treasury. This exam is very complicated and requires a substantial amount of study. As such, these practitioners enjoy a high barrier to entry as it relates to providing their services to the general public.

Given that this is a professional services business, most financial institutions are willing to provide a small business loan or line of credit in order to commence revenue-generating operations. Most importantly, an enrolled agent business plan is going to be required if an individual is seeking a substantial business loan. This business plan should have a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page features information that is standard to the accounting and enrolled agent industry. There are more than 10,000 individuals who are licensed as enrolled agents with average annual billings around $200,000 per practice. Each year, these businesses generate about $250 million revenue specific for tax related services. In the business plan as well, a full demographic analysis should be included as it relates the number of individuals and small businesses operating within the target market. For the individual demographic profile, an analysis that showcases the annual household income, median household net worth, population size, population density, number of people that are small business owners, and number of people that are professionals should be included within the documentation. As it relates to the business profile, an examination of the number of small businesses operating within the target market should be included with an additional focus on anticipated annual revenues, annual profits, number of employees per firm, and related information as to the small business market within a target market area. For an enrolled agent, the target market radius is typically about ten to twenty miles depending on the population density.

Frequently developed in conjunction with the enrolled agent business plan and marketing plan is the SWOT analysis. For strengths, enrolled agents enjoy a moderately high barrier to entry given the licensure that is required in order to operate in this capacity. The gross margins are very high, the startup costs are low, and given that taxes are due on yearly basis no matter how the economy is doing – these businesses are typically able to always generate profits and a positive cash flow.

For weaknesses, the scope of the practice of an enrolled agent is somewhat limited. Again, these individuals typically only deal with tax matters and may only provide certain ancillary services in order to generate a modest amount of additional income. Additionally, enrolled agents to face ongoing competition from individual tax preparers as well as certified public accountants.

For opportunities, many enrolled agents will seek to boost the revenues of their business by offering services such as bookkeeping and related accounting services in order produce revenues outside of the major tax seasons. It is important to note that bookkeeping practices can be completely integrated with a enrolled agent firm given the nature of these operations. Additionally, many of the bookkeeping clients will ultimately use the enrolled agent for their tax-preparation needs.

For threats, automation is somewhat of a concern for some enrolled agents. There are numerous pieces of software as well as other platforms allow people to very easily fill out their own tax forms. However, one of the key things about the enrolled agent is that they have the ability to represent their clients in front of major taxing authorities on the federal and state level. As such, these individual practitioners will always be able to generate revenues given that when a tax matter occurs they are able to properly assist their clients with dealing with it.

An enrolled agent marketing plan should also be developed so that the individual practitioner can easily reach people that are in need of tax advice and tax form preparation services. Most importantly, a proprietary website should be developed that showcases the operations of the business, the enrolled agents on staff, ancillary services that may be offered, as well as hours of operation. This website she listed among all major search engines. Additionally, many enrolled agents will maintain a presence on popular social media platforms such as FaceBook, Twitter, Google plus, and LinkedIn in order to ensure that they are able to create as much visibility as possible for the business. LinkedIn and FaceBook are of special importance to enrolled agents given that many people use these platforms to find third-party service providers that can assist them with their tax needs. It should be noted that these platforms also allow individuals to write reviews of their experience with these enrolled agents.

One of the nice things about using social media to market as well is that people are looking for specialized services can contact their friends and family members who can then refer them to the enrolled agent social media pages. The expense regarding marketing this type of business to the general public is considered to be moderately low.

One of the other ways that many enrolled agents will create their visibility at the onset of operation is to develop ongoing relationships with municipal agencies as well as local chambers of commerce. This allows for a number of small businesses as well as independent art for viewers to quickly find the enrolled agent when they have a specific tax issue that must be dealt with.

Automation is a modest threat for most enrolled agents, this industry will remain profitable and cash flow positive for the foreseeable future. Taxes and accounting are very complicated matters for many people especially small businesses – and the demand among individuals and entrepreneurs for qualified tax advice and tax management services will always be in demand.