James and Linda Gryczewski of Small Business Exchange Inc.

TYPE OF BUSINESS: Professional employer organization providing a full array of outsourced human resources services
EMPLOYEES: Four in-house (overseeing about 750 employees through outsourced services)
YEAR ESTABLISHED: 1998
GROWTH RATE: 79.7 percent since 2003

"The challenge is educating others to what we do."

JIM GRYCZEWSKI, Vice President

Jim and Linda Gryczewski had no idea what they were getting into when they took on their first client in 1998. But eight years and many clients later, the hard-working Chicago natives have a successful professional employer organization with clients in eight states.
"And the funny part of that story is that the client came to me," said Jim Gryczewski, Vice President.
Small Business Exchange Inc. offers small and midsize businesses the opportunity to outsource the majority of their human resource functions to a single company. According to Jim Gryczewski, his company can provide clients with customer service and cost savings through economies of scale, which allows his clients to focus on the core competencies of their business.

With more companies opting to outsource non-core functions, Small Business Exchange has grown from revenue of $1.3 million in its first year of operation to projected revenue this year of $17 million. While the couple is thrilled with their company's growth, they're mindful of the tough and unlikely road that got them there.
Jim Gryczewski is an accountant by trade while Linda, the firm's president, worked in customer support at SBC for many years. The blending of their skill sets, and their shared entrepreneurial spirits, led them to start other businesses before hitting on Small Business Exchange.
We started probably four or five businesses from nothing," said Jim Gryczewski. "Some were winners, some were losers. But we liked the idea of trying new things, trying something new."
But when one of his clients suggested they take over human resource function of his small business, Small Business Exchange was born.
The business now supports 11 clients in eight states and oversees roughly 750 employees for those clients. Services include everything from payroll and insurance administration to tax payment service and employee benefits. They see their business as a growth industry in a time when companies need to find more economies of scale to remain competitive.
"The challenge is educating others to what we do," said Jim Gryczewski. "Once they understand, they realize the type of benefit a service like ours can provide."

— Maripat Blankenheim

 

© 2007 Small Business Exchange