Hire a mentor and share the care of being a mini-tycoon
by Widget Finn
Reprinted from Financial Mail on Sunday, November 21 1999
Running a growing firm can be a lonely business. One of the toughest aspects
of setting up a company is the feeling that there is no one to turn to for help
and advice.
Many budding entrepreneurs find that the answer is a mentor.
Mentoring, formal or informal, is common in larger companies where younger
employees form a relationship with a more senior figure who offers guidance
and career advice.
The concept is catching on in growing firms, where business experts believe
it can make a big difference to an owner-manager's peace of mind.
A good mentor should be able to offer advice on business processes and direct
entrepreneurs to experts in key fields such as tax planning, design or marketing.
It can prove an invaluable service for those who start out with little commercial
experience. But perhaps most importantly, a mentor will be a friendly, impartial
listener with no axe to grind.
Jacqueline de Baer is chief executive of London-based De Baer Corporate Clothing,
which she founded in 1984 and now has sales of £9 million.
In the past two years, she has seen her profits rise by 500%, a success she
credits largely to her mentor.
De Baer found her mentor through the Academy for Chief Executives, a forum
that provides mentoring and development for its members through one-to-one sessions
and peer-group support.
She wanted a mentor who had successfully developed a small business and turned
down the first offer in favour of Phillip Gee, founder of the healthfood chain
Holland & Barrett.
She says: 'A mentor is totally dispassionate and can be the catalyst for making
tough decisions. He or she doesn't necessarily know the answer, but will help
you work your way towards it'.
Mentors can be found through accountancy firms or consultancies. Costs vary,
with accountants sometimes offering free mentoring until a company can afford
to pay, while commercial schemes charge up to £10,000 a year.
Leading accountant Arthur Andersen recently launched the CoNect initiative,
acting as a broker to bring together senior members in large companies as mentors
to young organisations.
The programme is based in eastern England but is expected to go nationwide
later.
The government also plans to launch a Business Volunteer Mentors' Association
in April and is seeking 1,000 volunteers with business experience.
Nationwide advice network Business Links offers mentoring for small businesses
with 10 or fewer staff. It also offers the services of a personal business adviser
for firms with fewer than 200 staff. The extent and cost of the service varies
locally.
Opinions differ on whether a mentor should have direct experience of a growing
firm. While owner-managers such as De Baer set a premium on having a mentor
who has worked in a growing company, Jane Darlington at Arthur Andersen believes
that big company experience is vital.
She says: 'A small firm may want to expand into global markets but lacks the
expertise. We can find a mentor who has international experience'.
To be effective, the entrepreneur must get on well with the mentor and be prepared
to run the relationship within firm boundaries. It is worth interviewing several
potential mentors before settling on one.
Entrepreneurs must be prepared to commit to regular sessions over an extended
period.
Steve Schneider, managing director of the mentoring consultancy CPS, meets
a client for 20 sessions, each lasting 90 minutes over a 52 week cycle. He says
that he can demonstrate progress that soon adds value to the business.
But what is in it for the mentor? In the case of some of the consultancies
charging high fees, the answer is obvious. And accountancy firms admit that
they have a commercial motive in nurturing future potential clients.
But there is an element of altruism as well.
Colin Beale, senior partner in accountant Harrison Beale, spends much of his
time mentoring though his local Business Links scheme.
Unlike many accountants, he has hands-on experience of business. A millionaire
at 24 and broke at 25, he owns a nursery chain and other enterprises.
'I get a tremendous kick out of it', he says. 'I love seeing someone succeed'.
Mentoring do's and don'ts:
- Do ensure that the personal chemistry is right before you start
- Do establish a structure to the relationship
- Do be committed to the relationship
- Do insist on a trial period
- Don't expect instant results
- Don't become dependent on your mentor
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