
Five Questions Over Coffee with Allen Kopelman (ep. 153)
Who is Allen? Allen Kopelman is the seasoned founder of a forward-thinking payments company, with an impressive professional career spanning over 25 years in the payments industry. Previously involved in the hospitality sector as a restaurant owner and chef, Allen transitioned to the payments industry with a resolve to help business owners optimize their transaction processes. His deep understanding of both sides of the payment equation empowers him to create client-centric solutions that enhance business growth and efficiency. Allen is a problem solver at heart and a respected voice in the industry, also contributing as a writer for the Green Sheet magazine. Episode Summary: Welcome to It’s Not Rocket Science: Five Questions Over Coffee, where Stuart Webb engages with Allen Kopelman, the innovative founder of a successful payments company. In this enlightening episode, Allen delves into the intricacies of payment solutions, outlining how tailored payment software can significantly reduce costs for business owners. Through sharing his rich experience, Allen illustrates the transformation from traditional payment setups to today’s software-centric approaches. The conversation touches upon key elements that businesses need to consider when scaling their payment operations, with insights into common challenges faced by startups and how his company provides resolute solutions. The discussion highlights practical advice on leveraging payment technologies to maintain cash flow, avoiding the pitfall of becoming a financial buffer for clients. Allen underscores the importance of invoice automation and understanding interchange in order to enhance business operations. His valuable insights and real-world anecdotes underscore the critical role of payment strategies in ensuring business viability. Business owners and payment professionals alike will find this conversation both informative and inspirational, offering actionable strategies for optimizing payment processes and fortifying cash flow. Key Takeaways: * Understanding your payment system is crucial to effective business operations, especially when considering scalability and customer service. * Automated billing systems can significantly improve cash flow and free up resources for core business functions. * Business owners should avoid negotiating long-term payment terms, thereby mitigating cash flow issues by effectively utilizing credit options for customers. * The importance of understanding interchange rates in optimizing payment transactions, particularly as businesses expand. * Transitioning from traditional business approaches to embracing software solutions can improve operational efficiency and customer satisfaction. Notable Quotes: * “Payments is all about software...using the proper technology based on whatever business it is that you have.” * “Your customer already has a bank. You shouldn’t really be doing that as a business owner.” * “Cash flow is king...you shouldn’t really be doing that as a business owner.” * “You have to make decisions, you can’t just wallow around.” * “Don’t be the bank. Your customer already has a bank.” Resources: * Allen Kopelman : LinkedIn Profile [Not explicitly mentioned but relevant] * The Green Sheet : Industry magazine where Allen contributes. * Who Moved My Cheese? by Spencer Johnson, a recommended book. * The Five Second Rule by Mel Robbins, another highly recommended book. * Visit It’s Not Rocket Science: Five Questions Over Coffee for free resources and more insights from the episode. Dive into the full episode to grasp the depth of Allen’s expertise and stay tuned for more discussions that demystify complex topics with simplicity and p 👍 Don’t forget to like, subscribe, and leave your comments and questions below—for Gwen or for future guests! And don’t forget: keep an eye out for next guest. To submit your own questions, subscribe to our newsletter and join the conversation! P.S. Loved this episode? Hit reply and let us know what resonated most _________________________________________________________________________________________________ Subscribe to our newsletter and get details of when we are doing these interviews live at www.systemise.me/subscribe Find out more about being a guest at : link.thecompleteapproach.co.uk/beaguest Subscribe to the podcast at https://link.thecompleteapproach.co.uk/podcast Help us get this podcast in front of as many people as possible. Leave a nice five-star review at apple podcasts : https://link.thecompleteapproach.co.uk/apple-podcasts and on YouTube : https://link.thecompleteapproach.co.uk/Itsnotrocketscienceatyt! Do You Need a P.A.T.H. to Scale? We help established business owners with small but growing teams: go from feeling stuck, sceptical, and tired of wasting time and money on false promises, to running a confident, purpose-driven business where their team delivers results, customers are happy, and they can finally enjoy more time with their family - with a results-based refund guarantee: if you follow the process and it doesn’t work, we refund what you paid. This is THE P.A.T.H. to scale your business. ————————————————————————————————————————————- Transcript Note, this was transcribed using transcription software and may not reflect the exact words used in the podcast. SPEAKERS Allen Kopelman, Stuart Webb 0:00:00 - (Stuart Webb): Foreign. Hi, and welcome back to It’s Not Rocket Science. Five questions over coffee. I am here with my, my lizard mug, which is where I get my coffee for these things. And there’s Alan. I can see Alan has got his drink in front of him. So welcome to you, Alan. Alan Koppelman is our guest today. Alan is the founder of a payments company. So I guess we’re going to get in some really interesting discussions about how payments can help business owner grow their business with reduced costs. So welcome to five questions over coffee, Alan. 0:00:59 - (Allen Kopelman): Well, thank you for having me today, Stuart. 0:01:02 - (Stuart Webb): Absolutely no problem. So, Alan, let’s start with sort of trying to understand from, from the sort of business owners that you speak to, who is it that you’re trying to help with the solution that you’ve got? 0:01:15 - (Allen Kopelman): Well, we always talk to the business owner. I mean, in a larger company, we might be talking to the CFO or talking to someone in their IT department because, you know, today, you know, payments used to be, you know, a bunch of little machines around. And you know, now today, today payments, you know, been doing this for 25 years. Payments is all about software. So we always have to make sure, you know, how are we doing these payments, how are we connecting everything? 0:01:46 - (Allen Kopelman): How is that all put together? And you know, so, you know, doing payments is not just a commodity. It’s all about, you know, using the proper technology based on whatever business it is that you have. 0:02:02 - (Stuart Webb): And, and tell me, what solutions have business owners tried before they come across somebody like you? What, what is it they’re trying to do? What is it they’re trying to do without perhaps sort of seeking help from the sort of solutions that you’ve got? 0:02:18 - (Allen Kopelman): Well, a lot of times people are starting a business and they run to Stripe, but you know, sometimes they run into problems over there scaling because Stripe doesn’t really do underwriting of the merchant. They kind of underwrite the transactions and it’s kind of a little bit different of a setup. And then they could run into issues based on their business type and things like that. A lot of people today, you know, I probably come across one person a week that’s starting a business that virtually there aren’t, they’re either the first one or there’s maybe only a few of those around. 0:03:05 - (Allen Kopelman): And a lot of times they don’t understand, like, oh, well, I’m going to the, like, we had a guy recently had a cost recovery company and I was like, well, what is that? Explain it to me. So he explained, he goes, oh, it’s for Medical, Medical billing, recovery. Let’s say you’re a doctor and you did an operation and the bills, you know, you sent the bill to the insurance company for 10,000 and they agreed to pay 10,000. 0:03:33 - (Allen Kopelman): But in the end they re reviewed it and they only sent the doctor 6000. So what it doctor do they get with this medical recovery company? And they, they go after the other $4,000 and they get a percentage of it. And you know, so is that really a collections company? No, it’s cost recovery. They’re not recover. They’re not collecting money from a consumer or a business in essence, right? They’re, they’re recovering, they’re collecting money from an insurance company. 0:04:09 - (Allen Kopelman): So it’s not really, they’re not really a collections company. So we had to explain it to a few banks. Finally one of them got it and they were like, oh, okay, this isn’t really a collections company. It’s closer to medical billing than collections. So, you know, this is the things that like, we can help people with. You know, there’s so many companies out there today that are fintech companies or SaaS companies or AI companies. 0:04:37 - (Allen Kopelman): And then these companies have no phone numbers. You can only email them or do some kind of online chat with them. And you know, if you’re a business owner and you need to have that, you know, I don’t say we need to hold your hand the whole time, but you want to be, you want to have that assurance that when you have an issue in your business, you’re able to call somebody and get your issue taken care of. 0:05:02 - (Allen Kopelman): You know, then you should work with a company like mine. 0:05:06 - (Stuart Webb): And, and how long have you been in business? I think you said just then you’ve been doing this for 25 years. What, what, what, what was the sort of starting point for this? 0:05:16 - (Allen Kopelman): So the starting point was I owned a restaurant and I was, you know, in a chef and I was in the hospitality industry. I worked in hotels, country clubs. I worked for a consulting company where we would go to hotels, mostly country clubs, not, not very many like individual restaurants. And then we would do, you know, help them with menu engineering, costing, hiring, you know, staffing, recipes, all kinds of, you know, all kinds of different things. 0:05:49 - (Allen Kopelman): And, you know, and I decided, okay, I’m going to make a change in life and look for something else to do. And I got into this business and I kind of knew what it was to be on the other side, to be the, the business accepting credit cards. And one of the things that I, you know, there was things that I hated about it and you know, and I wanted to make sure, like if I was going to get into this business that I was going to be able to help business owners, you know, navigate like what’s going on, how to read the statement, how to make sure, like I’m working with a good company that has an easy to read statement that people are going to understand and make sure that there’s customer service for our customers, make sure that we’re able to take, keep them in business by, you know, making sure that they have equipment that’s reliable and if it breaks, you know, we’re going to be able to replace it quickly and things like that in the, in the very beginning because that’s what the business required. And over time, you know, that’s changed to the point where, you know, today people are looking at software and not necessarily looking at just getting a credit card machine. 0:07:08 - (Stuart Webb): And so what’s the valuable piece of advice that you could give to a business owner from somebody like you who’s been on the side of collecting money, but now helps them to sort of collect that money quicker and make it flow through their business? Because we all know it’s cash flow that kills businesses. The business may have great ideas, may have great customers, may have great products, but unless you can collect the money quickly and turn that into operating cash, it becomes difficult to keep that business running. 0:07:40 - (Allen Kopelman): Yeah, one thing is, and today a lot of businesses are not like they don’t, it’s not like a credit card machine on the counter thing. It’s more like, oh, I’m sending steward an invoice, right. And then getting you to pay the invoice. So you know, you have to really start to think about, you know, I have a saying, don’t be the bank. 0:08:00 - (Stuart Webb): Right? 0:08:00 - (Allen Kopelman): Your customer already has a bank. So you know, you don’t need to go, you know, the days of negotiating terms like 30, 60 day terms with people, you shouldn’t really be doing that as a business owner. As a business owner, you should be, you should be saying, okay, I need to collect my money up front, send the customer an invoice, let them pay by credit card or ach. So I can collect my funds up front and let their bank be their financer of, of it is, let the bank, let their bank finance their, the, the purchase. 0:08:42 - (Allen Kopelman): Because today when you, you know, and this hasn’t probably, I mean, I would say maybe, you know, 25 years ago, maybe money, I don’t think money was much cheaper than it is now. But you know, when you look at if you had to access a line of credit, you could be spending 7 to 10% or you’re using your capital that you could be using to buy more cups or more microphones or whatever it is that you sell and you’re depleting your ready cash that you have to purchase inventory. 0:09:16 - (Allen Kopelman): Right. So, you know, don’t float, you don’t need to float. Customers have a way to float money now by using their credit card. They can put the purchase on their credit card and, and it’s only costing you, let’s say, two and a half to 3%. And you don’t have to let go of your cash because you need your cash to, you know, pay your employees, pay your bills, pay your rent. And believe me, I’ve helped businesses turn this like whole thing around, you know, over, over 25 years. 0:09:50 - (Allen Kopelman): You know, I, I always tell the story. I had this client that he was a CPA and he decided to expand his business. He was going to get into bookkeeping. So he bought a book, a small bookkeeping company with more than 100 clients. And they grew it to like 300 clients. But the problem was the clients weren’t paying on time. And I had met him and I said, hey, let me show you our billing system. And once I showed him the billing system, within 90 days they got everybody, all new customers signed up for automatic billing. 0:10:24 - (Allen Kopelman): And all the old customers, they got them all signed up too. And then that freed up their staff from chasing money. Yeah, you know, they were all sitting around making phone calls, hey, when can you pay your bill? When can you pay your bill? They’re waiting for checks in the mail now. There’s no check in the mail. And they’ve literally like in two years, they ended up doubling the size of the company. 0:10:49 - (Stuart Webb): Yeah, brilliant, brilliant story, brilliant story. And rightly so. Because you need that cash to, as you say, to pay inventory or bring in new inventory or pay cust your, your employees bills. You can’t afford to have it sitting around in customers wallets waiting for them to, to pay your invoice, can you? 0:11:06 - (Allen Kopelman): No, you can’t afford to do that. You, you know, today in any business, cash flow is king. When you, whenever you read stories online about this place or that place, when they go bankrupt, they just don’t have any cash flow and that’s the main problem that they’re having. 0:11:22 - (Stuart Webb): Yeah, brilliant. Alan, what brought you, you mentioned, you mentioned being a chef, but what was the origin story? Was there a, was there a, a final moment of being a chef when you went, no, I can’t take this anymore. I’ve just got to get into being a. A business owner. Or was there a cash flow problem? What was it that brought you to what you do now? 0:11:41 - (Allen Kopelman): No, Well, I didn’t. I had a very. I had a. I had my own restaurant at the time, and it was. It was. It was successful. And I wanted to add liquor because liquor is a lot more profitable than food. 0:11:55 - (Stuart Webb): Yeah. 0:11:56 - (Allen Kopelman): And I was like, I need to add liquor. So I was going through the process of getting the liquor license, which I obtained, and then I was expanding the business because you have to have a certain amount of seats in order to have an liquor license. When you’re serving food, there’s a consumption license. They call it in Florida, cop consumption on premises. So I was going through the process, and then all of a sudden, I went down to the city, and the city’s like, oh, the landlord said, you weren’t gonna. 0:12:29 - (Allen Kopelman): You weren’t gonna open the other side of the store? And I’m like, what? I was in the middle of the construction. I went down there to pick up the. The next. You know, go. Go down there to find out when they coming over to inspect so we could finish the project. And then we got into a lawsuit and this and that and whatever. I ended up recovering all my money, and then I was just like, I’m done. And for a few months, I was looking for other. 0:12:56 - (Allen Kopelman): Other locations, but I kept running into the same problem where I needed to have X amount of seats to have this liquor license. And at the time, in the area where I was in Boca Raton, Delray, these cities were not allowing for outside seating, so you couldn’t get liquor. A liquor license. And I was like, you know what? Not gonna open another restaurant unless I can get a liquor license. And it doesn’t look like it’s gonna happen. 0:13:24 - (Allen Kopelman): And I was still doing, like, catering and stuff because I had another kitchen in a warehouse, and I was doing that. And then one of my friends said, hey, you should try this credit card business. And I. I worked for somebody. Yeah, I worked for somebody for about a year. And then I said, you know what? I kept that. People were asking me about, like, technology solutions, and they were like, no, no, just sell them a machine. 0:13:48 - (Allen Kopelman): And I was like, you know, there’s more to this business. And then some. I met somebody, and they told me. They said, hey, read this magazine called the Green Sheet, in which I write for that magazine. I’ve been writing for that magazine for a while, for two years. I wrote a column in there and so I ended up opening my own company. 0:14:10 - (Stuart Webb): Brilliant. I love the story. The frustration led you to be the person that solves the problem. That’s brilliant. 0:14:19 - (Allen Kopelman): It’s important, you know, you want to solve the problem. And you know, if anybody wants to look at like our, we have like a cash flow calculator on our website and it’s on the solutions page. We have a bunch of different calculators that can show you, you know, how much money you can save. But we have one under B2B cash flow and it has a whole calculator talking about, you know, you tell it how much business you do and, and then it will explain how much money you can save by taking credit cards versus waiting for a check in the mail. 0:14:54 - (Stuart Webb): And if you go to our vault, which is five questions over coffee.com freestuff you will get a direct link straight to what Alan has just des there, which is a, a, the, the, the calculator where you can see exactly how much you could save by doing that calculation. And believe me, the number of businesses I point towards things like that in order to get them to understand how cash flow can kill them is absolutely critical. 0:15:23 - (Stuart Webb): So yeah, brilliant. Thank you very much for that, Alan. Uh, Alan, just as a final question now that we uh, as we’re reaching into the, into the, to the final point that we’re getting to on this, is there a question that I should have asked you? Is there something that I should have asked but I’ve not yet been able to sort of get that from you? Is there something that you’re thinking, you know, there’s a killer question in here and he just hasn’t spotted it. What, what is the killer question that I should have, I should have asked you by now? 0:15:56 - (Allen Kopelman): Well, I don’t give out all the secrets, but you know, one, one of the, one of the things that we do do tell people is there when you’re on, when you’re using, when you’re doing at least 25,000 or $50,000 a month, you don’t. Businesses need to start to learn about Interchange and how Interchange works and why those flat rate companies who are charging 2.9 to, let’s say 4% are charging people, you know, why you shouldn’t be on that program anymore and why you should be on Interchange. Pass through and you can contact me and I will explain the secret to you about how the, how, how credit card interchange works and how that can impact your business. 0:16:44 - (Allen Kopelman): And a lot of businesses just don’t realize that you know these flat rate companies, while they can help you get started, we can help you optimize what you’re, what you’re doing so that you can spend less on credit processing. 0:17:00 - (Stuart Webb): So let me just suggest, and I’ve just. 0:17:01 - (Allen Kopelman): That’s the screen. 0:17:02 - (Stuart Webb): If you, yeah, if you would like to get that, that from Alan, if you drop a message into the chat, it, if he doesn’t see it and answer it, I will and I will point anything that I see people dropping into the chat beneath this video on LinkedIn or wherever. If you see that question, if you’ve got that question and you haven’t, you drop it into the chat, Alan will get to answer it and he will be able to guide you through the next stages. 0:17:30 - (Stuart Webb): And if you’ve listening to us now on Spotify or Apple podcasts or anywhere like that, once again there’s a chat function, you could drop it into the chat function and you can ask that question. We will get Alan to answer those questions for you. Alan, thank you so much for spending a few minutes with us and talking us through that. I know you’re a busy guy. You were busy just before we came on air. So I’m not going to sort of make you stay and try and keep going for, for many hours. So I’m just going to give you, 0:17:57 - (Allen Kopelman): I’ll give you like two, I’ll drop you two tidbits because you gave me the question about, about books. So I would tell anybody, business owner, two books that I really like in my life. Who moved the cheese? Somebody gave me that book when I first started my business. I think it’s a really important book that can really change your mindset. And the other one was Mel Robbins, the Five Second Rule. 0:18:26 - (Stuart Webb): That’s a brilliant, that’s another really brilliant suggestion because the one thing I love about the Mel Robbins book, it’s so easy to implement everywhere you go, isn’t it? I mean, from getting out of bed to making a decision. It really is. And I think that the thing about the Mel Robbins and the thing I’m always very conscious of, so many business owners believe that a decision they’re taking is, is final and one way and most of the decisions we’re taking as business owners, we can reverse them. If you sort of do it and then you say, hang on a minute, that was a mistake. It’s so easy to step back. We, it’s our pride that stops us from stepping back rather than anything else. 0:19:03 - (Stuart Webb): You can so easily turn around and say, no, I made a Mistake there. I did it. I did it the other day with something. I went, no, no, I’ve made a mistake. Let’s just go back. I apologize to people. And I just go, look, we’ve got to go back. Too often. We think, I’ve made a decision, I’ve got to keep going. That’s the wrong way to do it. 0:19:19 - (Allen Kopelman): Yeah, but the thing is, you know, you gotta. You have to make decisions. You can’t just wallow around, oh, should I do this? Should I not do that? You know, have a, have a limit. Like, oh, can I waste. Can I spend a thousand bucks and I won’t be mad? 0:19:32 - (Stuart Webb): Yeah, yeah, that’s your limit. 0:19:34 - (Allen Kopelman): Then that’s, Then that’s your limit. And you go, okay, well, this only costs 500. Let’s try it. It’s worth it. 0:19:40 - (Stuart Webb): And if it, if it doesn’t work out, hey, you know, you tried. It doesn’t work out. So that’s the. That’s it. And that’s a great piece of advice. I’m glad we finished on that one. I think that’s a great way to finish this. Get people to make a decision. Thank you so much for coming and spending a few minutes with us. Really appreciate that. And I look forward to sort of seeing how people comment and thank us for, for bringing some of that wisdom here. 0:20:05 - (Stuart Webb): If you’d like to be informed of what’s going on, I send out notes every week about who’s coming on and who’s going to be available. Just go to this link, which is five questions over coffee.com. if you click on that link, you can subscribe. You will get access to the podcast, you’ll get access to notes about who’s coming up. And also remember, if you go to the five questions over coffee.com forward/freestuff, you will get access to the brilliant free advice that not only Alan’s been giving here, transcripts and things like that, but also from other guests. So, Allan, thank you so much for spending some time with us. Really appreciate it. 0:20:45 - (Stuart Webb): You’re a busy guy and you’ve got lots of other people that you got to talk to, so I’m going to let you go and we’ll talk again very soon. 0:20:51 - (Allen Kopelman): Well, thank you for having me on today. I really appreciate it. It was fun. 0:20:56 - (Stuart Webb): No problem. Thank. Get full access to The Leak at thecompleteapproach.substack.com/subscribe














