Why consider using a business mentor

As I was contemplating writing this posting, somebody asked me why they should consider using a business mentor.

Sometimes, it is difficult to give a direct answer. And much depends on where your issues are centred – sales, production, admin, manpower – or at least where you consider them to be. Certainly, a mentor can be that professional shoulder to lean on, when you are searching for direction from a neutral source. Some argue that the mentor becomes a member of your board, forcing you to consider issues that you have preferred not to ask or have tried to avoid.

A recent case study illustrates what I mean.

A couple of months ago, a bank asked me to take on a growing client of theirs in Jerusalem, who effectively greeted me with the line: “I have built up this business for 25 years. It is something that you know nothing about. What on earth can you do for me?” He was right, it was the kind of operation that I have no clue about.

Well, we shortly established that his cash flow planning was ineffective. This was forcing him to take loans and at bad rates. Further, his time management was poor, leading to spend too much effort being spent in his office rather than creating new sales. Not a bad start, but not the “wow factor” that he was looking for.

So, I suggested a trip to his accountant, who knows all teh numbers. The company has been using the same expert for decades, but ususally only meets up once or twice a year. Our CEO agreed, although without much faith. The accountant himself was also initially sceptical and tried to put off the meeting. As for the result of this 60 minute encounter……………?

After some polite introductions and light questions, I threw out a ‘tester’. Turning to the man of finance, I merely asked him what our CEO could do to improve his income. The slightly sarcastic response referred to better sales. However, I persevered. Cautiously, the accountant suggested two technical adjustments to how specific costs are registered in the books.

And the value of these brief sentences? It is estimated that over twelve months, these changes will lead to tens of thousands of dollars entering the pockets of our CEO rather than donating them to the tax man as in the past. Not a bad return for the CEO for some prodiing from a man he had never met until recently.

Explore posts in the same categories: Business, Jerusalem

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2 Comments on “Why consider using a business mentor”

  1. […] Why consider using a business mentor […]

  2. Kieran Perry Says:

    I am linking this webpage from my personal blog . this has all of the usefull information necessary.

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