Recently, I had the honor of speaking with Dave Brereton, the founder and owner of Wisconsin Merchant Services, LLC., where he shared insights into his experiences as an entrepreneur and what it takes to successfully start and run a small business. Graciously, Dave agreed to have our conversation recorded and transcribed as it's a great real-world example that others can relate to and learn from as they set out to build small businesses of their own. You can learn more about Wisconsin Merchant Services, LLC by visiting https://wisconsinmerchantservices.com
Note: This interview has been edited for length and clarity.
Lucus: So, tell us about your business. Where is your business located? What does your business do? Who is your target audience?
Dave: Wisconsin Merchant Services is based out of Lodi, Wisconsin. We provide payment processing to small to medium sized businesses that have 75 employees or less. We basically target anyone in Wisconsin that needs to process credit cards.
Lucus: When was your business started and/or how long has it been in business?
Dave: I started my company around 15 years ago (2006).
Lucus: What made you start your business? What problem were you trying to solve?
Dave: Well, before founding Wisconsin Merchant Services, I actually started a company in the telecom's industry. We provided re-billing through Hertz Rental (via Hertz Communications). We used AT&T’s fiber backend to make that happen. When the Federal government broke up AT&T, we continued to use their backbone to rebuild my company. Then, the industry fell apart completely. I used the money I got from that closeout to start Wisconsin Merchant Services. I started it mainly to provide inexpensive credit card processing to anyone that wanted and needed it because the other players in that space weren’t really doing much good for the actual companies themselves.
Lucus: Why did you decide to setup your business as a LLC? Was it for tax purposes? Was it the easiest for you to get started?
Dave: I founded Wisconsin Merchant Services as an LLC because I found it easier to get started with, and for tax purposes. It was much better for a company our size.
Lucus: Did you start Wisconsin Merchant Services with a business plan, or did you just wing it as you went? Why did you go with that approach instead of the other?
Dave: My dad was a business consultant, previously the president of two universities, and taught Organizational Theory Design. Before he passed away he helped me put together business plans for both companies. It’s always best to start with a plan.
Lucus: Walk me through the step-by-step process you went through to get to where you are today. What was the first thing you did? The next thing? And so on.
Dave: As I said before, the first thing I did was develop a business plan for my first company, the telecoms company. When that industry went belly up, I launched my next company, Wisconsin Merchant Services. Almost immediately after launching that company I was introduced to another larger payment processor in Arizona who I partnered with to handle all the "heavy lifting" of the processing itself. At that time my company pretty much took off because there was a huge demand for it.
Lucus: How long did it take for you to reach profitability? How long were you running the business before you started paying yourself? And, how did you live through those first few months/years?
Dave: It only took me about sixty days to reach profitability. Then, after about ninety to one-hundred and twenty days after launch, I was able to pay myself. Until then, I lived off the money I earned from my telecom company.
Lucus: What are some of the struggles you faced when starting and/or growing the business? How did you overcome?
Dave: My business and industry are all about face-to-face selling, and marketing is difficult for that type of sales cycle. We can’t really rely on TV commercials, ads, etc. It’s very non-traditional from people that sale credit cards or other direct-to-consumer products.
Lucus: What was your "aha" moment where you realized your business was actually going to be successful?
Dave: During my second week of being in business at Wisconsin Merchant Services, I brought a huge book of business to that company I mentioned in Arizona. It was during those days when we both (myself and the president of that other company) realized our partnership was going to work and my company was going to be successful.
Lucus: What’s your best advice for people looking to become small business owners?
Dave: Do what you love, not what’s going to make you money.
Lucus: If a kid walked up to ask your advice and you only had a few minutes to give them your best tip, what would it be?
Dave: Never take no for an answer. "No" will only get you nowhere.
Lucus: What is the legacy you wish to leave behind for your business? How do you want people to remember it when you’re gone?
Dave: That I’ve done a good job and helped my customers. It’s all about the experiences we have with people that matter.
You can learn more about Wisconsin Merchant Services, LLC by visiting https://wisconsinmerchantservices.com