Thoughts on Mentoring for small business

Small business owners can benefit from relationships they build with peers in the business community. Discussing business struggles with others who may be experiencing similar hardships can be constructive in resolving issues. Mentors offer wisdom and knowledge acquired from their experience with growing their business.

Mentoring can be used in a variety of situations and different mentors may be used.

There is no need to rely on a single mentor. It is rare that one mentor will have expertise on all operational issues so it is useful to search out several sources. Find a group of people you can work with that you would trust to have the best interest of your business in mind.

 The relationship with a mentor does not have to be a formal or long term contractual relationship. It can be a few hours of mentoring sessions, or periodic reviews over time depending on the current needs.

If you can find someone who knows your business and industry well the mentoring is likely to be more relevant and satisfying.

Mentoring can be used across the organization ranging from coaching younger executives to time spent with the most senior group. If the business environment is changing rapidly a mentor may be valuable guiding the organization through the process of managing change.

Remember, mentoring is not likely free advice; the relationship with a mentor should satisfy the needs of both the organization and the person providing the service. There may be fees involved but a business may also provide the mentor with a unique opportunity to see a new perspective on an issue and fees may be waved in lieu of the experience gained by the mentor.

You can determine when a mentor will be of benefit through self-assessment and determining the challenges the business faces. If you can resolve the issues with resources internally you do not need a mentor but if the answer to the question is you lack the talent in house it may be time to seek the support of one or more persons with the right kind of advice.

Small business staffing options

Here are issues I see in small business as they deal with staffing:

      1.     Should the business hire permanent staff or contract help?

Staffs usually provide more continuity and stability but add to cost due to employment taxes and perhaps benefit programs.

Staffs provide the advantage of employee loyalty and an edge in a more positive morale and productivity.

Contract people can be terminated at any time negating the costs of severance programs.

Contracting can add flexibility by allowing the adding or deleting of staff as demand requires.

Compatibility is sometimes harder to than competence so staff can be more productive within a group or department.

Hire a contract person as a temp. If the person works out you can make the job permanent.

2.     Should business promote from within or add new employees.

Promoting from within does enhance employee morale and loyalty to the company. Employees who see the company as interested in career development and loyal to staff tend to make a greater effort in supporting company goals and success.

Introducing new employees from the outside does provide a fresh approach to some positions and can re-energize the company. Also, securing new outside talent may reduce the cost of training and development of current staff.

 

3.     Full time vs part time staffing

Businesses should be careful not to add staff too soon. Temp or part time staff can be used as the business grows and changes to permanent positions can be made as the business matures.

If the business has seasonal peaks and valleys, use of part time staff provides the flexibility to adjust to demand.

In some situations, job sharing can provide the opportunity to maintain a larger pool of employees who are familiar with the work but prefer to work part-time.

Let growth, profitability, and demand dictate when to expand permanent staff.

Small business mentoring

Thoughts on Mentoring for small business

Small business owners can benefit from relationships they build with peers in the business community. Discussing business struggles with others who may be experiencing similar hardships can be constructive in resolving issues. Mentors offer wisdom and knowledge acquired from their experience with growing their business.

Mentoring can be used in a variety of situations and different mentors may be used.

There is no need to rely on a single mentor. It is rare that one mentor will have expertise on all operational issues so it is useful to search out several sources. Find a group of people you can work with that you would trust to have the best interest of your business in mind.

 The relationship with a mentor does not have to be a formal or long term contractual relationship. It can be a few hours of mentoring sessions, or periodic reviews over time depending on the current needs.

If you can find someone who knows your business and industry well the mentoring is likely to be more relevant and satisfying.

Mentoring can be used across the organization ranging from coaching younger executives to time spent with the most senior group. If the business environment is changing rapidly a mentor may be valuable guiding the organization through the process of managing change.

Remember, mentoring is not likely free advice; the relationship with a mentor should satisfy the needs of both the organization and the person providing the service. There may be fees involved but a business may also provide the mentor with a unique opportunity to see a new perspective on an issue and fees may be waved in lieu of the experience gained by the mentor.

You can determine when a mentor will be of benefit through self-assessment and determining the challenges the business faces. If you can resolve the issues with resources internally you do not need a mentor but if the answer to the question is you lack the talent in house it may be time to seek the support of one or more persons with the right kind of advice.

Business Valuation Tips

Business owners should be planning for their own future!

Business owners are so busy running their companies every day, they never seem to have time to plan for exiting the business. But they can’t avoid planning for this critical time in their lives. Presenting a business for sale is very different than managing it with the business owner’s personal management style and priorities.  It can take years to properly prepare a business for sale to get the highest price.  Business owners should start creating an exit strategy at the earliest possible opportunity!

Realistic Expectation of Business Value

Unfortunately, most business owners have a very inflated view of the value of their company.  And why not?  They have put so much money, time and heart into it.  But they need to realize the price is based on what someone else is willing to pay for it.  Periodically having an evaluation prepared by a professional is a good way to help determine what the business owner needs to do to reach his or her goals.

 Tips courtesy of Bill Sivell – VR Windsor Inc.