the value of a mentor
our focus lies in the realm of small business, but we stay connected to the “big-market” world of venture capital and their “sexy” startups because 1) there’s a lot of talented folks who hang out in that neighborhood, and 2) they’re consistently sharing valuable experiences and insights about growing businesses.
though much of the perspective and advice associated with growing a large market venture is irrelevant to growing a small business, every once in a while we encounter a universal truth worthy of sharing. today we were inspired by an article published by the venture development center at umass boston. here’s our condensed translation for the small business owner ::
- they complete a skills gap :: small business owners rarely have a “team” of high-level thinkers, which means they’re even more behind the 8-ball than a big-market startup when it comes to covering all the skills needed to successfully start and grow a business (think marketing, sales, finance, operations, legal, technology, and human resources). bring in a mentor, however, and many of these skill gaps get plugged.
- experience with prioritizing :: it’s been repeated a gazillion times… to be successful, small business owners need to work on their business rather than in their business. even then, there’s an incredible amount of things to do. the sheer volume makes it particularly challenging for a business owner to prioritize. mentors with years of experience (especially with operating small businesses of their own) have the perspective to guide small business owners towards what they should be spending the most time on.
- making connections :: experienced mentors will have an extensive network — more than the typical business owner. they’re able to introduce the small business to people who can really help make things happen for their business.
- building credibility :: having an experienced mentor can help business owners gain the trust of prospective customers, business partners, bankers and others.
- avoiding mistakes :: mentors have “been there, and done that.” they’ve already made the mistakes every small business runs the risk of making and can help a small business owner avoid dangerous land mines.
the folks at umass rightly posed the question of “how do you know if a mentor has the right qualifications, motivation and time commitment to help?” in response, they came up with a rating system based on four simple questions to help business owners determine if a prospective mentor is likely to meet their needs. again, we’ve made some slight adjustments to account for the variations associated with building a company for “main street” vs. wall street ::
(attach a score to each of your answers, with 1 being low and 4 being high)
- qualifications :: does the mentor have experience successfully building and/or running a small business? has he/she gone through the experience of selling or acquiring another company?
- motivation :: does the mentor really care about helping to build your business or is he/she just involved to do business with your company?
- attitude :: does the mentor spend a lot of time telling you the “right way” to run a company instead of listening to and asking you questions that get you thinking?
- accessibility :: how available is the mentor when you have a burning issue? does the mentor use regular one-to-ones with you as the means of mentorship, or does the mentor swoop in for one-to-manys?
total your score and divide by four. here’s what it means:
1.0 to 2.99 – the mentor is just a contributor.
3.0 to 3.99 – the mentor is, well, a mentor.
4.0 – the mentor is a super mentor, the kind you want.
like the umass venture center, mentorship lies at the core of ZENCubate and all of our other business-building services. we buy into the concept of scoring a “4.0″ on their scale, and you should, too.
common traps for the unwary :: advertising
most small businesses advertise their goods or services at some point. the overwhelming majority of owners decide what to say, how to say it, and where to say it without benefit of outside guidance or expertise. this all-too-common approach poses 2 major risks :: 1) the money and effort spent will yield little to no “results;” 2) the business will be exposed to a number of potentially serious liabilities (ranging from dissatisfied consumers and a damaged reputation to illegal practices with serious financial repercussions).
before starting any conversations around the first set of risks, it only makes sense to start with the second. after all, no advertising results are good if they ultimately lead to costly trouble! so here’s a brief primer on 3 fundamental legal mistakes many small businesses make in their marketing communications.
this is about the proverbial fine print. many small businesses create ads that fail to clearly and conspicuously disclose all the information about an offer that’s likely to affect a consumer’s decision. another common shortcoming is in failing to place the most important information (key terms) close to the advertised price.
perhaps most problematic of all, however, is when a business attempts to hide an offer’s real cost or critical terms and conditions by ::
- putting them in obscure locations (such as the border area of a print ad)
- burying them in numerous, densely packed lines of fine print
- including them in small-type footnotes
- in the case of internet advertising, using pop-up windows or hyperlinks to communicate key terms or cost information
- consumers should never have to wander through an electronic maze to discover important conditions or limitations of an offer. place all important info at or near the top of the page on which you make your offer.
TIP :: with digital advertising is playing an ever-increasing role in marketing communications, here’s one thing to remember that can help with communicating the essentials :: you can use hyperlinks to inform consumers about less critical terms and conditions (especially when the information is extensive, such as terms around subscription cancellations or rebate offers). just be certain your hyperlinked disclosures are clearly labeled to show their importance, nature and relevance (for example, “early cancellation of this service may result in substantial penalties. click here.”) vague labels like “terms and conditions” are not enough to direct consumers to important restrictions or qualifications.
advertisers (and ad agencies) must be able to document their basis for all advertising claims before they are ever published. the federal trade commission (ftc) is pretty serious about this stuff, with violations deemed “unfair and deceptive acts” under the law (in case you harbor any doubt, that’s not a good thing).
so, if you’re communications make any express claims (think of phrases such as “tests prove”, “doctors recommend”, and “studies show”), make certain you have the backup in place to prove it before anything is released. if you’re claims are implied, be sure your records document a “reasonable basis” for what’s been communicated.
TIP :: most small businesses only be make a limited number of claims, if any, so documenting your substantiation is often just a one-time affair (especially if your ad copy is phrased to anticipate future change). this is where expert guidance can be particularly helpful.
endorsements and testimonials are an increasingly popular way for businesses to communicate credibility and trust, and there are some pretty concrete rules around their use.
first, your endorsements must always reflect the honest opinions, findings, beliefs, or experience of the endorser. they should never contain representations that are deceptive or that you can’t directly substantiate (see “prior substantiation” above). and while the message does not have to be phrased in the endorser’s exact words (unless your advertisement represents them as such), you cannot take your endorser’s words out of context or distort their opinion or experience in any way. this all essentially boils down to “no embellishment.”
just like reckless drivers don’t always get pulled over by the cops when they’re weaving in and out of traffic, businesses don’t always get called to task when they play fast and loose with their advertising.
bear in mind, however, there are even more undesirable outcomes than a ticket (like causing an accident). the business risk associated with “bad” advertising lies in causing damage to your reputation — a risk that’s highly amplified in today’s world of social media and other on-line platforms).
so if you’re a ZENLegal client, here’s our reminder :: engage your attorney and have him or her review your marketing communications before they head out the door. and if you’re not a ZENLegal client… well, why not?
jack speranza is an attorney, small business owner and principal of main street ventures. for 15 years he has helped his companies and his clients strike the right balance between risk and reward by weaving good business, good technology and good law into new services and operations.
