Interview: Warren Dedrick, Chairman of CR Software

A. I've been in the industry for 33 years. It was a fluke that I got into this space. In 1970, I began working for Nationwide Credit Corporation thinking it was a loan company. I soon discovered that it was a collection agency. I had no desire to become a bill collector. But soon I became fascinated by the work and the fact that hundreds of millions of dollars in accounts could be entrusted to a company.

A. After 9 years at National Credit Corporation, I became the second guy in charge, reaching the Vice President level. In 1979, I asked my mentor as well as owner and president of National Credit Corporation, Phil Rosenthal, to sell me part of the company. He refused and to this day, Phil and I muse over the course of events that ensued. His rejection prompted me to go out on my own and buy Capital Recovery Service. I build it into the 60th largest collection agency in the country with five operating divisions. In the early 1980's, Capital Recovery Service became one of the first companies to purchase accounts receivables - our first purchase was from Miller and Rose, a department store chain.

A. Due diligence, due diligence, due diligence. Be prepared and be funded. You need to have enough capital in the bank to cover expenses for 12 months. I've seen folks trying to get into this business who only have enough capital to cover expenses for 5 months - that's a formula for failure. Foremost, understand the sector you're going into. And it always helps to surround yourself with brilliant people, because when you do, people will perceive you to be brilliant, and soon perception becomes reality.