Dr Jeff Cornwall

The Better Business Bureau has implemented a new approach to rating businesses.  Although it was put in place early in 2009, it is just now getting noticed as its impact is beginning to be felt in the market.

The new system uses a more detailed A+ through F letter-grade, which replaces the old system that rated businesses as either “satisfactory” or “unsatisfactory”.

As small businesses look to trim their budgets to survive the recession, they need to be aware of any potential impact on quality and customer satisfaction.  Also, expect consumers to pay more attention to such rating reports, as they attempt to focus more on getting the most value from their spending.

The scores are calculated using a variety of measures about the specific business, such as the nature and age of the business, its complaint history, government actions against the business, its approach to advertising, and honors and recognition from its industry.  To get a full explanation of its system click here and here.  You can see if your business is currently graded by searching their database here.

Rick Spence writes in the Financial Post that Canada needs to focus on entrepreneurship education to rebuild their economy:

[If Finance Minister] Mr. Flaherty is serious about getting Canadians to take responsibility for their financial futures, he would instead focus on entrepreneurship education. The days when the banks, the post office or General Motors hire for life are gone. People have to get used to the notion they must create their own jobs — probably many times — throughout their working lives. They have to understand entrepreneurship isn’t some hopeless last, desperate resort. It’s a lifestyle of hope, empowerment and accomplishment. The accelerating pace of change today — economic, technological and demographic — is spinning off countless new business opportunities, if people can only be encouraged to see them.

My father (still an active octogenarian entrepreneur) taught me years ago that every entrepreneur needs a three legged stool of support – an attorney who knows business law, a CPA, and a banker.  With all due respect to my father, I believe there is a fourth leg to that stool that is equally important – a mentor. 

For each of the legs of this stool you need to take care to pick the right person for you.  Just because a certain attorney has a great reputation and is recommending by others does not always mean that there will be a fit with your business, and more importantly, a fit with you.  Ideally, the people who serve as your four legs of support will become an advisory team that you can trust to offer clear-eyed advice in good times and in bad.

Finding a banker, CPA and attorney for your business is rather straightforward.  Talk to other entrepreneurs and other people who know business to get a list of professionals to consider.  Meet with each to find one that truly is a good fit with you and your business, and who can provide any specific expertise you may need.

But finding the right mentor is not as straightforward.  It is not as simple as doing a web search or talking to other entrepreneurs.  The right mentor may come from your networking in the business community.  He or she may come from your circle of family and friends.  Your mentor may be a professor or an advisor you secured through programs like SCORE.

Finding a mentor is not like hiring an attorney or setting up your accounts with a banker.  It is more like a friendship that naturally kindles and then grows in intensity over time.  You can never really choose a mentor – it just seems to happen.

So what makes a good business mentor?

A Dreamkiller, not a Cheerleader.  Entrepreneurs seem to always have plenty of cheerleaders.  Family and friends are there for encouragement and lifting your spirits.  A good mentor is someone who will tell you the truth — even if it hurts.  My students and alumni will sometimes refer to being “Cornwalled”.  When they bring their ideas or fledgling businesses to me for advice, my job is to try to find every weak spot, every possible flaw, every vulnerability they face in the competitive market.  One student once said to me, “Dr. Cornwall, you are such a Dreamkiller.”  As much as I would love to join the ranks of cheerleaders, I know that my role has to be to help ensure they get their business right and find their way to be able to thrive in the market. 

Trust.  A mentor should be someone you can share your wildest dreams and your darkest fears.  A mentor often acts more as a therapist than technical advisor.  The stress and strain of starting a growing a business can become overwhelming.  A good mentor is someone who can listen and empathize with these struggles.

Wisdom from Experience.  Find a mentor who has “been there and done that.”  They may not have all the answers, but they have enough experience to be able to help the entrepreneur navigate through difficult times.

Network.  Along with their experience also comes their network.  A mentor can help connect with possible customers, suppliers, funding sources, and so forth.

When you find a person who is willing to invest the time and energy it takes to be a true mentor, cherish that relationship. I appreciate the support and guidance I received from my father and the other mentors in my life.  And when the time comes to become a mentor for others, remember all of those who helped you throughout your entrepreneurial journey.

From Entrepreneur.com:

The economy tanks. You have two options: hole up in a bunker and hope it ends before you run out of tinned peas, or innovate and emerge stronger than when the economy took the hit.

The article offers five steps to successful innovation during the current slump.

Just make sure you have the resources to pull it off!

One source of invaluable information when thinking about starting a new business is to talk to entrepreneurs already in business.  My students are generally hesitant to call on entrepreneurs to get information or advice.  I stress to them that my experience has been that most entrepreneurs are more than willing to help an aspiring entrepreneur, even a possible new competitor, because an entrepreneur probably helped them out when they were first getting started.

I tell my students that 9 out of 10 (90%) of entrepreneurs I have known are more than willing to help new entrepreneurs out with some wisdom, advice or even market intelligence.

That 90% figure I use was just a wild estimate.  But, a recent survey by SurePayroll of small business owners seems to back me up.  It found that 91% are willing to offer advice to new entrepreneurs.  OK, so I was off by 1%….