Bob Miller dreams of one day escaping for long stretches of time with his wife to the seaside home they purchased in southern Ireland. With his eye on that prize, he hopes a new business venture catapults him more quickly toward that pot o’ gold.
Though he’s not at all Irish, Miller admits he’s been lucky all his life. Over the years, he worked his way up the ladder from a wet-behind-the-ears Green Bay television reporter at the age of 22, to part owner and manager of WKOW-TV, Channel 27 in Madison. But more recently, after five years at Discover MediaWorks and some consulting work, he decided it was time to recreate himself. “I wanted to do something with business and finance,” he said, “and wanted to get in on the ground floor of a company. I like business banking, but didn’t want to become a banker.”
The answer, he hopes, is Compound Profit Advisors, a new franchise business he opened in May that provides non-traditional financial services to small and medium-sized businesses. The company, he said, works with business trying to get established — from start-ups or young, growing businesses — to mature businesses with financial challenges. “Some companies can be very successful on paper, but in reality, they could soon go out of business because their cash flow is terrible,” he said.
Miller said Compound Profit provides services designed to help companies improve cash flow, reduce operating costs, and increase the bottom line. One method it offers is working capital factoring, also known as accounts receivable factoring, whereby some or all of a company’s accounts receivables are purchased, and the resulting capital can then be used to finance payroll, operations, or provide a revenue stream towards the bottom line.
“So, if a company’s A/R totals $100,000 a month, I buy it,” Miller explained. “I advance the company $80,000 in 24 hours. After I collect the entire $100,000 receivable amount, I return the remaining 20%, less my fees (typically between 3% and 5%).” Receivables, he said, are purchased “with recourse,” so if one client fails to pay, the business client must turn over another receivable to cover [the first] receivable, so Miller remains “whole.”
The company, which partners with several major financial institutions and banks, also offers equipment leasing starting at $500, employment outsourcing, credit card processing, commercial real estate lending, collection services, and is currently BETA testing a medical billing product.
“I’m running a company with a bazillion tentacles, but don’t have the nightmares or staff,” Miller said.
Of all the opportunities out there, why Compound Profit, and why now? “There’s never been a better time,” Miller answered. “Everyone’s needing some help. This is fun. I’m meeting businesses I never knew existed, and I thought I knew everyone!” he joked. It’s not always easy: “I’m a new business trying to establish myself. I’m making cold calls again, so getting the word out is a challenge.” Referrals, he said, are coming in from CPAs, lawyers, and banks.”If a bank provides me the referral, I’ll deposit the receivables into that bank.”
Miller paid $39,000 for the initial franchise, which included a $5,000 training and marketing fee, then purchased the rest of the 14 Wisconsin franchises for an undisclosed package-price. Ideally, he’d like to retain two franchises and sell the others. [He’s also secured a first right of refusal on the company’s Ireland franchise!]
Miller, a local investor in several businesses, including The Great Dane Pub, said he’ll consider Compound Profit a success when he recovers his expenses, and when half of the franchises he owns are sold.
“I’ve never lost money, knock on wood.”
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