Benefits are definately a tougher area to compete in, a very small workforce can't get much better rates on things like health Ins than an individual can.
Disability Ins is about impossible to get except in a group. We just instituted a short/long term disability plan here where I work. Covered 43 people short term, and 17 People long term. The premium for each policy is less per month than I got quoted for an individual plan on myself.
Question, are there any "associations" you could join that may offer group
Benefit plans?
The one thing that is unsolvable is time off, ie: one person on vacation in a five person company is 20% of the work force. Tough tough tough.
Anyway, sorry to hear it, good luck with it.