9/17/11 5:32 AMEven old-hand entrepreneurs need mentoring | Crain's New York Business

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Buck EnnisKenny Lao, right, owns Rickshaw Dumpling Bar, and Peter Klein isone of his mentors.

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Even old-hand entrepreneurs need mentoringThe mind behind Rickshaw Dumpling Bar isn't alone in turning to seasoned experts for advice; tips onlocating mentors and building a strong working relationship with them.

By Elaine Pofeldt

Published: September 16, 2011 - 5:59 am

Then Kenny Lao found out in July that his RickshawDumpling Bar had won a proposal to open a restaurant inTimes Square this fall, he realized that the tight timeframe allowed no room for mistakes. “This was anunplanned opening,” Mr. Lao said.

Mr. Lao turned to the two mentors he had been matchedwith in the CEO/Small Business Advisory Program, apartnership of UBS Wealth Management Americas andthe Clinton Economic Opportunity Initiative. The ownergot frank input on a number of vital matters from PeterFurth, chief executive of FFF Associates, a family-ownedfirm that evolved from a spice importer into aninternational trade consultancy; and Peter Klein, seniorvice president of investments at UBS. Their regularconference calls have been vital in keeping Mr. Laofocused on two, big-picture points: opening on time andmanaging cash flow, he says.

“They are not as emotionally invested, which is really nice,” said Mr. Lao, whose two stores and four food trucks havecombined annual revenues of $3 million to $5 million.

While getting confidential advice from trusted experts has always been valuable to new entrepreneurs, in this economy,even experienced ones like Mr. Lao often find that getting an outside perspective helps prevent missteps.

“Young entrepreneurs have not seen times like this,” said Magnus Greaves, who advises many of them as CEO ofTheCashFlow. It creates online courses that assist entrepreneurs in turning their ideas into profitable companies. Mr.Greaves also co-founded 100 Urban Entrepreneurs, a group that supports the creation of minority-owned businesses. Probono consultation becomes crucial in such a hard-pressed economy, according to Mr. Greaves. “When capital is hard tocome by, good mentorship can stretch that capital even further,” he said.

Here are some tips on locating mentors and building a strong working relationship with them.

1. DON'T EXPECT A MENTOR TO FIND YOU.Accomplished professionals are likely to be busy, so expect to put in some effort to meet them. “A very good way is througha church or synagogue, or by doing charity or volunteer work,” said business coach Arlene B. Isaacs. “There are always

9/17/11 5:32 AMEven old-hand entrepreneurs need mentoring | Crain's New York Business

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individuals on the board who have distinguished themselves.”

If you've got a high-concept business, consider entering one of the many local contests in which entrepreneurs pitch theirideas to potential mentors and investors. Winning DailyCandy's “Start Small, Go Big” contest last year earned Vi Hoang,women's clothing designer and founder of online retailer Dolly Pearl, guidance from apparel and accessories designerRebecca Minkoff on practical matters like sourcing and manufacturing. The prize includes just a day of mentoring, but thetwo continued the relationship. Ms. Minkoff welcomed the opportunity to show Ms. Hoang some ropes. “I know I needed a lotof help early on and would have benefited from [these kinds of] resources,” the veteran said.

It's not necessary to meet in person, either. “Facebook is really important,” said Ms. Hoang, who has gotten valuable tipsfrom contacts she has made via the site.

2. LOOK FOR SOMEONE WHO “GETS” YOUR PRODUCT OR SERVICE.It's best to find a professional who is involved in your industry or uses what you're selling, says Ryford Estores, who marketsa package of home-haircutting equipment for men at Self-Cut System. He speaks regularly with Mr. Greaves, whom he metthrough 100 Urban Entrepreneurs. “He understands and believes in my product,” said Mr. Estores. “He actually cuts his ownhair.”

Drawing on his experience, Mr. Greaves suggested that Mr. Estores offer an after-haircut cream to generate recurringrevenues. The entrepreneur, who used to be a barber, loved the idea. “I'm in the process of developing that product,” hesaid.

3. KNOW WHAT TO EXPECT FROM THE RELATIONSHIP.Mentors want to be of assistance, but a high-maintenance entrepreneur will have problems. “Mentors are there to bounceideas off and to give you insights,” said Mr. Greaves. “They're not there to run your business for you. They're not there to tellyou the right answers every time. It's your job to make the decisions for your own company.”

On the other hand, don't hesitate to ask questions for fear of looking like a newbie. “Invariably, they'll end up touching onmany other things,” Mr. Greaves said.

4. DON'T OVERLOOK ONE-TIME SESSIONS.A benefit of competitions like DailyCandy's, which announces its 2011 winners later today, is that they offer manageabledoses of direction, according to participants.

Finalist Laura Williamson, founder of online knitwear retailer Le Loup-Garou, said that if she wins she will absorb everythingpossible from program mentor Jonathan Adler and other high-profile entrepreneurs. “Just to hear everyone's story will beinspiring for me,” Ms. Williamson said.

5. BE CANDID WITH ADVISERS.His mentors point out that one thing aiding their work with Mr. Lao is that he didn't hide details—including his persistenttrouble delegating tasks that he thinks he can do better than his staff. “Communication is key,” Mr. Klein of UBS said. “Youwant all your cards on the table.”

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