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Company Springs Dojo Software into New Markets

Capital Processing Int’l Inc. morphed into a multi-million dollar company by offering back office services to martial arts studios. But early next year, the Tarzana firm will kick its way into new markets, expanding its services to a wide swath of industries, including IT and real estate. “If (our service) can work for martial arts businesses, it can work for … any business that does any billing,” said President Thomas Kim, in an interview at the company’s brand new, freshly-painted office. In January, the firm plans to launch a set of rules that helps developers create customized software, which will serve as the basis for its expansion, Kim said. Through partnerships, billing software developers will formulate the program for industries they are familiar with, while Capital will handle the invoices and billing. Such partnerships will allow Capital to more easily expand into other markets, Kim said. “We wouldn’t be able to go out to a rental property company and be like, ‘Hey! We do payment management for the martial arts industry (and) the fitness industry, and we can do it for you guys,’” he said. “But if we provide our services through a partnership … then it’s obviously a lot easier for us to penetrate those markets.” Headquarters: Tarzana Top Local Executive: Thomas Kim, CEO/President Growth 2008 to 2010: 155 percent REVENUE 2010: $5.1 million revenue 2008: $2 million Capital currently derives the majority of its business from the martial arts industry, handling billing and more for busy senseis. Martial arts companies were a natural fit, Kim said, because it’s what he knew. His father owns a fleet of Pennsylvania martial arts schools. “The martial arts industry, they do a lot of things the old school way — with pen and paper,” Kim said, who earned a black belt as a pre-teen. By taking over the paperwork and time-consuming tasks such as sending out membership renewals, fitness instructors can focus on teaching and increasing sales, Kim said. And with more customers, business is growing. From 2008 to 2010, revenue increased 155 percent to $5.1 million. Kim said 2011 revenue is expected to hit $7 million. Business has skyrocketed for various reasons, including the increased popularity of martial arts from the popular UFC fights, referrals in a chatty martial arts industry and clients switching over from big back-end providers, Kim said. The growth has pushed to company to the max, spurring the new, larger office and plans to hire on about three more by the end of the first quarter of 2012. If Capital’s expansion into new markets works out, the firm could grow again, possibly hiring on about a dozen new people if the customers flood in, Kim said.

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