Know How to Handle Ambiguity Says Entrepreneur David Eason

At the age of 39, David Eason has achieved a remarkable level of success as an entrepreneur. He and his business partner started Berkeley Payment Solutions in 2006, and in less than four years the company has become the largest competitor in its sector.

Berkeley delivers prepaid Visa cards to companies looking for creative ways to reward their employees and customers. These prepaid Visa cards can be used just like cash. Take them anywhere Visa is accepted and use them to buy anything you want. Many companies are choosing to give their employees prepaid Visa cards in place of bonus cheques, which cost more to issue and process. And retailers are choosing to use prepaid Visa cards to reward customers instead of traditional loyalty cards, which can take a while to build up points and are sometimes a hassle to redeem.

In this article, I talk to Eason about Berkeley's success, and what makes him a natural entrepreneur.

What were you doing before you started Berkeley?

I graduated from business school and got into the world of management consulting, where I focused on strategy and financial services. I worked for Deloitte Consulting and American Express.

What made you leave management consulting to start this company?

I've always had a passion for entrepreneurship. I wanted to be able to do something that had real benefits for the greater good of a company versus just one small division or silo of a company. I also have a strong interest in filling a market or niche that's underserved by larger companies.

My business partner had this concept of prepaid cards that wasn't being done in Canada at the time. He also realized that he wanted to find a partner to help him drive the concept forward. At the time, I was looking to do something entrepreneurial and it seemed like a great fit. The first year we squatted in law offices on Toronto's Berkeley Street, which is how we got our name, developing the business model and bringing on our first corporate clients in the U.S., and then demonstrating the success of that business model to the banks in Canada.

The big Canadian banks are averse to risk. We had to put a proposition to them that eliminated all risk and talked about where the market could grow. When my partner Jonathon and I met with the big banks, we presented them with our model. We said "This is what we're currently doing. This is the risk that's involved (which is next to nothing). And here's the financial model." And it was really that demonstration of the success we had in the U.S., and communicating that we wanted to bring this same concept to Canada, that convinced Scotiabank to partner with us. We found a great partner in Scotiabank.

It took about a year, from the time I joined my business partner to the time we signed Scotiabank as a partner. Then it was a question of who were our first Canadian clients going to be? We wanted to focus on large, reputable companies. Nissan and LG were our first two clients that we launched with, and it just grew from there. From that point on, it's been quite a ride. We've had 200 to 300 percent growth over the past few years and will for the next few years.

What makes Berkeley different from its competitors?

We're what you would call a program manager in the sector. In Canada, there are a few others, but we're the largest and the only one that's partnered with one of the big five banks. That really differentiates us in terms of instant credibility. And bringing partners like Scotiabank and Visa to the table, we benefit from the confidence those brands inspire when we're dealing with our corporate clients.

We also have a very strong customer focus. We don't feel that we're trying to sell a service. We feel that we're actually consulting with our customers to help them meet their business objectives. We're continually innovating and trying to exceed expectations, and I think that also differentiates us and makes us the largest program manager in Canada.

What's next for Berkeley?

The way we look at is, we've done very well with filling the niche in the corporate incentive sector. But as we see it, our vision is to improve others' lives. There are several segments in the general population that are currently under served, and we think our product can have a positive impact on their lives. We're looking at continuing to provide financial disbursements to the recipients of social assistance, because some of these people have never before had the opportunity to have a Visa card.

So what's next for us is looking into those underserved market segments and putting together offers for them that make sense and will drive value, both in Canada and internationally.

Before we close off, do you have any advice for aspiring entrepreneurs?

First, you really have to have passion for what you do. If you don't believe in your product or service and what you provide to your clients, you're not going to find that passion. Second, our success is really built upon our people, and who we're able to bring to our team. An ability to communicate your vision and build a strong team, as well as grow your partnerships, is really key.

Finally, be good with ambiguity and the impact it has on your life. When you're an entrepreneur, there's ambiguity within the workplace, and a lot of people are going to be looking to you to navigate through that, to focus on your vision and to drive forward with a business plan that is very stable. Then there's also the ambiguity that being an entrepreneur creates in your personal life. With entrepreneurialism comes a lot of risk, and with a lot of risk comes a lot of stress. You have to be able to manage that stress and keep it out of your relationships with family and friends, and also make sure that you've got their support behind you.

In fact, I had a friend from business school call me, and he asked, what's the number one thing I need to know about becoming an entrepreneur, and I said make sure you've got support from your spouse. I've been really fortunate to have that.

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