From restaurants to fintech - how this payroll solution got its start
Helping out in his parents’ Mexican restaurants while growing up in Denver, Arthur Garcia experienced the struggles of small business ownership firsthand — especially the headaches of accounting and payroll. Those early lessons stuck with him, sparking a mission to empower Latino entrepreneurs who are often underserved by traditional business services.
Together with Gustavo Suarez he co-founded Trez, a software startup that has been shaking up payroll and benefits since 2022 by creating solutions that actually get what small businesses need.
Here, Garcia explains how his experience in both family restaurants and leadership roles at Paychex and Xero helped shape the vision for Trez, and how the company is making a difference for small businesses today. —Brent LeBlanc
Q: What inspired you to create Trez, and what problem were you aiming to solve in the payroll and benefits industry?
A: Trez was born from my co-founder’s and my own experiences working closely with small businesses. Growing up in Denver, Colorado, I spent years helping at my parents’ Mexican restaurants, where I witnessed firsthand the challenges they faced as entrepreneurs, especially around accounting and payroll. Later in my career at Paychex and Xero, an accounting software company, I recognized just how underserved the U.S. Latino market was. For instance, many services lacked Spanish-language support, leaving Latino business owners with limited guidance on understanding and communicating benefits to their workforce.
In October 2021, my co-founder approached me with the idea to start a payroll company. Initially, I was hesitant, but after researching and testing the concept with potential customers, we quickly saw an urgent need for a tailored solution. New Latino-owned businesses made up 36% of all launches in 2023, highlighting a growing demand. With one in five U.S. workers identifying as Latino, the market is ripe for a payroll and benefits solution designed specifically for this community.
At Trez, our mission is to keep things simple and valuable for a community that’s been waiting for a brand and service that truly understands their needs. We’re leveraging technology to empower small businesses, starting with payroll and benefits and planning to expand into financial services in the future.
Q: Can you share some of the biggest challenges and lessons you've learned while building Trez?
A: As a startup, we face challenges daily, with our biggest hurdle so far being access to capital to drive growth. Fundraising has been tough, and we’ve operated as lean as possible to stretch our runway. Many investors recognize the significant opportunity in our market but are holding off until a lead investor commits.
One of our most important lessons has been to “fail fast” and trust our instincts, especially when it comes to personnel decisions. Early on, we hesitated to make necessary changes, which led to some costly delays across the business. We also learned the value of asking for help. Founders should lead sales in the beginning, but I reached a point where I became a bottleneck by staying in the sales cycle for too long. Delegating client onboarding to a capable team has allowed us to streamline operations and accelerate growth. Now, with a strong team in place, we’re positioned to move forward more efficiently.
Q: How do you see the payroll and benefits industry evolving in the next few years, and what trends are you most excited about?
A: Payroll and benefits have traditionally catered to enterprise and large employers. About a decade ago, new players began offering tech-driven, DIY solutions aimed at startups and tech-forward business owners. At Trez, we’re committed to serving U.S. Latino-owned businesses, where language and cultural understanding are essential to delivering real value.
In the coming years, I foresee a rise in specialized payroll solutions for different industries, like "Payroll for the Entertainment Industry" or "Payroll for Construction." I’m also excited about the impact that earned wage access and lending will have on American households, which have long relied on predatory payday loans in times of financial need. Additionally, international payroll is a space poised for growth, with more U.S. businesses likely to tap into the global talent pool.
Q: As a business owner, what tools or resources do you rely on daily that you can't live without?
A: With our remote workforce, staying connected and collaborating effectively is essential. Tools like Slack are vital for internal communications and real-time notifications, while dashboards in our CRM give me a daily snapshot of the business’s performance and progress. These technologies are crucial in keeping our team aligned and informed.
Q: Where do you typically get your news and insights about the industry, and how do you stay informed about changes and innovations?
A: I stay up-to-date with industry news in payroll, benefits, and fintech by following relevant newsletters, like The Net Gains, and attending numerous conferences each year. These events are invaluable for connecting with customers and exploring the latest tools and technology. Some of the key events we attend include Lattitude, Xerocon, Intuit Connect, Latino Tax Fest, and Negozee, among others.
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This Q&A was conducted by Brent LeBlanc and edited by Bianca Prieto.
Editor's note: A shorter version of this interview published in the Net Gains newsletter on Nov. 19, 2024.