FINANCE AT YOUR FINGERTIPS by Moses Ayiku, Jr. MBA OP/ED
In the last piece we mentioned two organizations that provide free services to entrepreneurs within the community. They are the S.C.O.R.E. Program and the Small Business Development Centers (SBDC). They are both great resources for budding entrepreneurs. The big bonus in utilizing either of these two resources is the fact that the cost is zero! It is highly recommended that one take advantage of this opportunity.
Having worked with diverse entrepreneurs in the past 30 years, it has dawned on me that several of the entrepreneurs we worked with benefited greatly from mentorship and advisory roles. We worked with a transport company that wanted to acquire tankers to move oil and related products for Oil Marketing Companies. Though we started the relationship as consultants tasked with developing their business plan, we eventually provided advisory services.
In this capacity, management would call us on a regular basis to meet and discuss trends, challenges and opportunities. This client was highly knowledgeable. In addition, they thrived on obtaining as much information as possible as well as assessing such information, prior to making any business decisions. These were all very sound business practices.
The client was more than capable of making their business decisions without our assistance. However, they saw my consulting firm as a resource and took advantage of that to ensure efficiency in decision making with optimal results. To our client, our advice assisted them to make strategic decisions that increased their profitability. They recognized the contribution that we could make to their business and utilized it effectively to grow their business.
The beginning of the business set-up process can be overwhelming. As a result, it can be very helpful to have a mentor or coach that can advise as one continues to learn and grow the business. A mentor can assist an entrepreneur to minimize the risk of making decisions that can push one out of business. That alone is a major reason to have a mentor.
There are various options when it comes to finding a mentor. Sometimes, entrepreneurs meet people along their business development journey that grow into the role of mentors. Typically, a good mentor should have certain characteristics. First and foremost, the person must have business experience. They ideally should have successfully set up and grown their own businesses. Such a person comes with business experience that money cannot buy. They can advise and guide you as you continue to grow your business.
We have already mentioned SCORE and the SBDC. They can also be credible options for obtaining mentors. In addition, there is the advantage that your mentor can utilize their extensive network to support your business as and when necessary or possible.
In most cases, mentors are not paid. However, there are options for those who can afford it to identify and utilize mentors for a fee. For example, in the case of our transport client, he compensated my company for the advisory services that we provided. The other reason why our client paid us was because they would identify areas where the business needed more information, and we were tasked to obtain such information for them. This allowed our client to benefit from our services while staying focused on their core business. All in all, this relationship worked positively for both parties.
In the next part we will continue with information about starting a new business. Please feel free to share with me your questions and experiences on starting a new business. I will do my best to respond, and, in some cases, I will write on some of these questions.
Your questions and comments can be sent to localtalknews@gmail.com.
