Q. How did you come up with the idea for your business?

A. I started out working for a computer manufacturer, in sales. Then, in the early 80's, I formed my own business to resell computers with accounting systems. But, it never made the kind of profits I wanted. So, around 1990, I decided start another company. When I looked around for a niche, a payroll service seemed the best idea. We had been putting in accounting systems for clients, both hardware and software, so we had a payroll package we could use. I turned the first company into a computer consulting business and, three years later, I sold it.


Q. How did you fund the business?

A. We basically used the existing infrastructure from my first company, so we had most of what we needed in place. I also got some money from my vice president of sales, and from my father. The three of us put in $30,000.


Q. What is the biggest challenge you've faced and how have you resolved it?

A. Finding enough of the right people. It's a problem that's unresolved, though we've tried a number of things. For example, for administrative positions, we give a test. It really helps a lot. Although I've had people apply for comptroller positions who are quite surprised when we whip out these clerical tests. But, those tests have done a pretty good job of differentiating the sharp people from the not so sharp people.


Q. What's the most significant mistake you've made as a small-business owner, and what did you learn from it?

A. Hiring the wrong employees and not doing something about it soon enough, in the hopes they'd change.


Q. Have you changed your business strategy?

A. When I started the business I always had plans to expand. But it took longer than I thought. Just within the last couple of years, we've opened two more offices.


Q. What have been the biggest surprises you've encountered?

A. Early on, when I was attempting to get bank financing, I assumed that if you had some form of collateral or a clear repayment method, banks would lend you money. I learned they usually want three ways of getting their money back; that's something I hadn't understood.


Q. Who in the business world do you look up to and what have you learned from them?

A. Jack Welch. I bought an audiotape version of his book and I tremendously enjoyed it. I listened to it a couple of times. It helps me to think bigger. And I learned a lot about the importance of doing something about the employees who aren't performing.


Q. How do you set yourself apart from others in your industry?

A. Price and service. The best way to provide good service in our business is to provide accuracy. You want your checks to be right all the time. Of course, we believe in being friendly. But the thing we stress is being accurate. Price-wise, when I started my business, I said to myself, people don't want another expensive payroll service. They want one that will provide value. In some cases, our customers save up to 50% over other services.


Q. What one piece of advice would you give someone starting his or her own small business?

A. If someone was starting a business and had the time to take one course, I'd say take an accounting course. You've got to understand the financials of the business, understand your statements. You've got to understand the bottom line.