10 Questions with...Ben Milne, Founder of Dwolla

Something we like to do over here at DreamBigGrowHere involves sharing the stories of fellow Iowa entrepreneurs.  The insights you can learn from your peers are often the most powerful anyway.  This week we are featuring Ben Milne of Dwolla - an amalgam of Web and Dollar.  Check out their site and you'll better understand why they've put that together. 

What was your first entrepreneurial endeavor?

Like a lot of Iowa kids, I did the lawn mowing thing.  But for me, I really went after it.  I started when I was maybe 12 years old, back in Cedar Falls and stayed with it through high school and made some good cash.  I ended up growing it beyond the simple 3 to 4 lawn type of deal, to mowing lawns all over the city. 

What is your current business all about and how did you get it started?

I always tell people to think of Dwolla as PayPal without the fees.  To keep things simple, we allow 2 entities to do a transaction without major fee structures (like a typical merchant services offering) on a propriety system. 

I actually started Dwolla by funding things through my tax return.  In the early stages I was able to self-fund and have since been able to attract some venture funding for the business.  Being able to find outside investors has really helped me to keep the start-up in Iowa.

Why did you choose Iowa to base your business?

There are many reasons:  familiarity with the state and having had my previous business was in Iowa sure helped. I had originally planned to do a US tour of startup hot spots like Boulder, the Silicon Valley, Austin,etc. -  to base the business. As I was about to do that, I ended up getting some local funding and was able to keep things in Iowa.  For Dwolla, we have always gotten what we’ve needed here, so we haven’t had to take that tour yet. 

What is one thing Iowa could do better for small business?

Find ways to better connect us all and instill a cooperative culture rather than a competitive one.  We can all be stronger together rather than competing so strongly with each other, realizing we don’t just compete with John Doe down the street, but with the globe. 

What is the best/worst business advice you ever got?

Be careful as you go along looking to raise funding as some brokers in that industry end up with their own selfish interests at heart.  They may know nothing about your firm, but end up bleeding you dry. 

How do you chill out?

Sadly, I don’t.  I’m just too focused on Dwolla right now.  I try to get out and do a little 4 –wheeling from time to time.

What has been your worst business idea ever?

A few years back, I decided I wanted to build tiny after-market products for cars.  I called them “black-boxes”.  They would trouble shoot after-market electronic issues.  It was a great product, but the margins were terrible.  I did some actual prototyping of the product and ended up putting 3 months into it, but trying to land a large client was near-impossible.  Going consumer direct is what I learned from this. 

If you weren’t running your own business, you would be…?

Trying to start another one. 

To make it as an entrepreneur, you’ve got to…

Have no problem being accountable and able to screw up and work through it.  Screwing up will happen, put the company before your pride, learn from those mistakes, and you will be ahead in the long run for having tried.

Finally, you are stranded on a desert island, who do you take with you (dead or alive)?

I would actually waive my right to bring someone along and trade that in for the ability to bring along a pen and paper.  Eventually, I would get tired of talking to whoever came along, but I would write endlessly.