5 minute read
When mentors turn nasty
By James O’Connell, Partner, Mayo Wynne Baxter
Even if you have a technical skill or vision that could form the basis of a successful business, the whole ’how to run a business’ side of things can seem quite daunting. Not surprisingly, therefore, numerous mentors offer their business experience to new entrepreneurs.
At their best, mentors can be a phenomenally useful resource. Regrettably, I often get to see those who have gone over to the dark side and used their superior knowledge of business processes to grab a slice of a promising business before their clients outgrow them. Too often, I see 20% – 40% of a business given away in return for vague mentoring ‘promises’ with few tangible outcomes and invariably no measurable ones.
At worst, dark-side mentors demand
❛❛ Too often, I see 20%-40% of a business given away in return for vague mentoring ‘promises’ with few tangible outcomes ❜❜
a shareholders’ agreement containing technical or arcane legal points that slyly elevate them to equal control of somebody else’s business (but leaving the original founders to do all the work and take all the risk). Clients are always shocked to find themselves in an unwanted but unbreakable partnership with a mentor because of clever legal wording. Mentors are often in a unique position of trust. Clients assume that their mentors act, if not in their best interests, at least fair and reasonably. Learning otherwise is a huge business lesson, but it comes at one hell of a price.
So, what do you do if you have a mentor demanding not only payment but a stake in your business: n Buyer beware! It may be a fantastic offer, or it may be the start of your business imploding. n If you are already paying the mentor, then ask yourself what extra value you will get? n Put a cash value on the shares demanded. If you would reject a cash offer from an investor at that price, then the mentor’s offer had better be something truly amazing. n Make any shares conditional upon targets met. n Don’t automatically throw in a directorship with the shareholding; they are separate things. n Understand the total reward. Monthly payments and capital value of shares and dividends and director status and a say in your business? n Watch out for a ‘land-grab’. Under the guise of ‘I just want to protect my shares,’ the greedy mentor may demand to be treated as an equal
‘partner’ with the same right of veto as the owners. Again, if someone offered to buy, say, 13% of your company, would you give them all the rights of influence, disclosure and veto over crucial aspects of your business as if they had 51%? If (hopefully!) not, why would you give it to a mentor? n Make sure you can sack them if a director, and that you can buy back their shares (at fair value) if they are a shareholder.
There are many great mentors, and this article is not trying to dissuade you from using them - but equally, you may encounter a mentor who sees you as an exploitable opportunity: so, make sure any deal makes hard commercial sense.
James O’Connell, Partner E: joconnell@mayowynnebaxter.co.uk T: 01273 223209 Mayo Wynne Baxter www.mayowynnebaxter.co.uk
1
TEMPERAMENT TEMPERATURE
Ever sat in front of your computer and realised you’re slightly too cold or slightly too hot? End up feeling uncomfortable and ultimately distracted? The right temperature can do a lot to boost morale and ensure staff can work effi ciently – they won’t be stuck trying to fi gure out how to alter the heat or air conditioning.
Avoid peaks and drops with BMS controls as they’ll monitor and optimise the overall temperature in the building. No one will be stuck trying to fi gure out how to alter the system, thereby boosting productivity levels, plus ventilation can be streamlined to ensure employees that suffer from severe allergies can work without any major discomfort.
3
CENTRAL POINT OF CONTROL
As we’ve touched upon already, a building management system allows users to control from one central point of preference. Rather than having to monitor several different systems, you can access all those installed under one point – from fi re and security to heating and ventilation, it’s all under one roof.
Business owners are often inundated with questions regarding the property’s installed systems; where it’s located, how to operate it and so on. But, when there is just one central point of control, this confusion can be almost eliminated.
WHAT ARE THE BENEFITS OF BMS CONTROLS?
BMS, also known as a building management system, is a computer-based control system that can monitor a range of installed mechanical and electrical equipment including a property’s heating, ventilation, power and security systems. Whilst this is often pushed to the side, it’s a crucial component to the overall success of a business. Failure to monitor and optimise your workplace and you may unintentionally create an ineffective environment.
At Javelin Controls, we’ve been specialising in commercial BMS control systems for over 15 years so know exactly how these can benefi t a business. It may not initially seem like an essential step, but BMS control can considerably improve your employee’s work performance.
2
GOING GREEN
One of the most obvious reasons for the installation of BMS controls is to improve your energy effi ciency. In fact, it’s generally considered the primary purpose. Both new and old systems can be optimised, ensuring your carbon footprint is limited.
A building management system also means staff can monitor how much energy is being consumed on a daily basis, saving not only energy but money too. They may be more likely to consider turning off an unnecessary lighting fi xture or perhaps ensure their computer is switched off at the end of the day. Whilst this may seem like small steps, they can certainly add up!
