As a small acquirer you have the plan, the funding and the systems. But do you have the key ingredient to growth – the right people?
    Many small organizations are looking to move up the food chain, take on more responsibilities, and grow into mega-acquirers. Organizations often try and take leaps to the next tier of the acquiring world, only to be held back by a lack of knowledge and a very steep learning curve. The most over-looked aspect of growing a business is hiring the right people, which can prove to be a costly mistake. Industry veterans can help short-cut the learning curve and help move an organization to the next level quickly.
    Most acquirers start with a well-thought-out sales and marketing plan. In fact, the majority have the luxury of abundant leads and sales. These “sales shops” are well-versed in the art of signing merchants, but often have little experience in running a back- office, full-scale acquiring business. Institutional acquirers and processors can often provide these smaller organizations with the tools or the “science” to move to the next level. The art of the trade, however, comes only with experience. Some organizations try to “organically” learn with existing employees, merchant accounting system methodologies, surcharge table management, underwriting, risk management, reserve methodologies, terminal file building/driving, etc. These organizations can spend months, if not years, trying to figure things out - spending money, time and resources while performing these functions incorrectly. Loss can be the greatest lesson. Through the loss of merchants, sales reps or even fraud, organizations realize they should have hired industry experts from the very beginning. The lack of qualified employees can, and has, cost acquirers thousands of dollars.
    As you move your business up the ladder, you must be prepared to invest in human capital. Larger acquirers procure senior industry veterans to develop or build-out their functional areas of operations. For smaller acquirers, finding the number two or three person at a well-run organization and giving them the chance to build their own department will help your organization grow. These individuals understand the art, and given the right drive and cultural fit, can help your organization move quickly to the next level. It could take someone with little-to-no expertise years to learn these disciplines, while you could hire an industry expert and get moving in the right direction immediately. In the implementation of your business plan, there is no doubt that the return on an industry master is well worth the investment.
    As you grow and spend money on sales, marketing, and systems – do not forget the most valuable asset: human capital. Merchant acquiring is a very specialized business and every small organization should invest in industry veterans. Obviously, take your time finding the right people as they must fit into your culture and buy into your vision, but nothing can replace the years of experience they bring to the table.