One key benefit of AHPs is that they can offer more affordable health coverage to small businesses and their employees. By pooling together the purchasing power of multiple employers, AHPs can negotiate better rates and access to a wider range of benefits and services than individual businesses would be able to on their own. This can be particularly helpful for small businesses that struggle to provide competitive benefits packages to attract and retain employees.

Setting up an AHP involves several steps, and the process can vary depending on the type of organization that is sponsoring the plan. Generally, the first step is to identify a group of small businesses that are interested in participating in the plan. Once there is enough interest, the sponsoring organization can work with an insurance broker to design a plan that meets the needs of the group.

The next step is to obtain regulatory approval from the state or federal government. AHPs are subject to a number of regulations, and it is important to ensure that the plan is compliant with all applicable laws and regulations. This can involve filing paperwork with state insurance regulators, providing financial and other documentation, and demonstrating that the plan meets certain minimum standards for coverage.

Once the AHP is established, it will need to be administered. Which may include a variety of tasks, such as enrolling new members, processing claims, and managing the plan’s finances. Some AHPs may choose to hire a third-party administrator to handle these tasks, while others may have a dedicated staff member or team to manage the plan.

AHPs can be a valuable option for small businesses that are looking to provide quality health coverage to their employees. By banding together and leveraging their collective bargaining power, small businesses can gain access to more affordable and comprehensive health benefits that might otherwise be out of reach. While setting up and administering an AHP can be complex, with the right planning and resources, it is possible to create a successful and sustainable plan.

While the economy has been strong in recent years, many experts believe that a recession is on the horizon.

Trade associations and professional associations may be impacted differently during an impending economic recession. Trade associations may see a decline in membership as companies struggle to cope financially. Additionally, they may see a decrease in sponsorship and advertising revenue as businesses cut back on their spending.

Professional associations may also see a decline in membership as individuals lose their jobs or have less disposable income to spend on membership dues. However, professional associations may be less impacted by a decline in sponsorship and advertising revenue, as these organizations typically rely more on membership dues for revenue.

It follows naturally therefore that during a recession, associations may record a decline in attendance and participation in events and programs as businesses show balance sheets with less disposable income, leaving them no choice but to reduce spending on these activities.

Navigate Through the Clouds with New Revenue Streams In Your Flight Plan

New revenue streams can come from developing new products or services and seeking out new sponsors and partners to increase non-dues revenue.

Associations can provide a number of services to help their members steer through a recession and mitigate its impact. Some examples include:

• Research and data: Associations can furnish research and data to members on the current state of the market and trends within their respective industries for them to make informed decisions.
• Legal and financial advice: Associations can provide access to legal and financial experts to assist members with issues related to navigating a recession.
• Increase sponsorship revenue: When was the last time you reviewed your sponsorship model and opportunities? These tend to evolve over time, so your sponsorship strategy should as well. For example, associations are beginning to sponsor mobile directories that connect members while increasing page views and, therefore, sponsorship dollars.

Reduce Costs to Get More Mileage From the Same Jet Fuel

Associations are finding significant cost savings in integrations that connect key systems together. It’s not your grandfather’s cloud anymore, so there are new opportunities through advanced Application Programming Interfaces (APIs) and strategically designed data warehousing to share data and streamline workflows.

Neither you nor your members can afford double data entry, so ensure data is entered only once and shared where needed. For example, technologies like nightly synchronization routines and Single Sign-On (SSO) can free up resources while improving data integrity.

Enhanced data visualization and business intelligence software can surface essential trends and insights without having to allocate staff resources to research them.

A properly configured Association Management System (AMSs) can play a vital role in helping associations weather a recession. By managing operations such as membership, events, and finance. AMSs provide valuable data and insights, such as membership trends and financial reports, which, in turn, can help associations make informed decisions about their scope of work and day-to-day operations.

AMSs can also facilitate a great deal of automation, alerting, for example, staff to engagement changes prior to the renewal or notifying members of expiring credentials or early-bird registration windows. All of these can boost engagement without the labor needed to monitor these dynamics manually.

Of course, AMSs’ level of sophistication today typically goes beyond the plug-and-play of a few years ago, so make sure your AMS is fully optimized for your data environment and functionality requirements. A substantial cost to avoid is the effort to replace your AMS when it was actually fully adequate but merely misconfigured.

Conclusion

To sum up, while the prospect of a recession can be daunting, associations can take steps to prepare and mitigate its potential impact. By diversifying revenue streams and reducing expenses, associations can position themselves for success in any economic climate, however grim the forecast.

Only then will the silver linings be visible.

Questions? Call 719-581-2221 anytime to arrange a consultation with either author. Both have spent a decade or more helping associations grow, can share with you what’s worked and would love your feedback.