Small Business Mentoring

The following was published in the Colchester Sun on March 20, 2008.

++++++++++++++++++++++++++++++++++++++++++++++++++++

Mentoring Small Businesses

We all know Vermont is a small business state. Yes, we are fortunate to have a few large companies and employers, mostly concentrated in Chittenden County, who provide good jobs with generally excellent wages and benefits to 12% of Vermonters.

But 90% of businesses employ less than 50 and 58% have four or fewer employees. In my career, I have worked for both very large and small companies and I have learned much from both. The one truism that transcends all others is this: skilled, motivated and inspired people who are well led create success for a company.

As I entered the last third of my life, I became involved with the Peer-to-Peer (P2P) Collaborative at the Vermont Sustainable Jobs Fund because it provides an opportunity to give back some of what Vermont has given to me.P2P matches a team of two or three CEOs, COOs and CFOs as advisers with the owner and management team of small businesses.

After an extensive interview with each client company, these entrepreneurial firms 'hire' us as business consultants at a fixed cost, approximately half to a third of usual consultant fees, for 8-10 work sessions. During 12-18 months the adviser team meets with their peers in the business to tackle problems of growth, operations, financing, marketing and customer service. We advisers willingly share what we've learned in business...and in life... with clients as they grapple with issues to make their businesses successful.

In working with these entrepreneurs and their teams, I have come to respect their intense commitment and passion for their ideas. They want to succeed, not only for the possible, although not guaranteed, financial payoff, but to be able to pay their employees well with benefits they can afford. Those that I've worked with sincerely want to be in Vermont and 'do their thing' in this state, rather than elsewhere.

P2P advisers work directly with businesses generally with annual revenues in the $1-15 million range who desire to grow and become more efficient in their operations, or to position the company to be sold. Teams of 2-3 advisers are matched to the needs identified in an extensive intake interview by a successful CEO. That interview produces a work plan and a set of goals for the engagement.

So far, I have worked with three companies. Two design and manufacture innovative products and the third is a service company. The one factor I find in common is their need for and difficulty in finding skilled, reliable employees. As I contemplate Vermont's present business environment, we are extraordinarily blessed because so many creative and thoughtful people want to do business in a state they love. Policymakers should take great care to enable an environment where they can do that without unnecessary barriers to success.

Speaking for myself and not for the Vermont Sustainable Jobs Fund, the Legislature should not unduly tax these business owners or the fruits of their labors and risk-taking when the time comes for them to realize capital gains. I also caution against excessive regulation and higher than necessary workers compensation costs caused by laws and rules that are out of step with those elsewhere.

Finally, the personal income and property tax burdens should be constrained. Vermont should carefully control its costs and taxes thus enable all of the private sector to thrive and grow. Otherwise, we run the risk of even more young people leaving Vermont, the very people our small businesses need for their growth and success.

David Usher lives in Colchester. He and his wife, Carol, run a small business.