Column: What you need to know before you search for a mentor
by Tom Johnson, publisher, Set-Aside Alert
Interest in mentor-protégé programs is growing significantly. After only eight months, more than 180 companies have set up mentor-protégé agreements under SBA’s new All-Small Mentor-Protégé Program. There is still substantial interest in the several other programs managed by the Department of Defense and other agencies.
The question we hear frequently at networking and matchmaking events is, “How do I find a mentor?”
It’s a tough question, but one that should be approached systematically and analytically. Scanning a database of companies is not the best place to start. Here are some suggestions for approaching the task.
Establish your objectives
Why do you think a mentor relationship would be good for your company? Are you looking to:
- Gain skills you don’t have
- Get free support to establish in-house administrative procedures and systems, say in accounting, payroll or human resources
- Beef up your proposal writing and business development effort
- Gain financial capacity, perhaps with increased bonding levels or operating capital
- Team on a specific contract, perhaps through a joint venture
- Link with a graduating small business to become its successor
- Get access to the mentor’s training program or courses or one-on-one training support
- Get access to the mentor’s customer agency contracts and reputation
Think through these and the many other objectives you might have, write them down and prioritize them in concert with your entire management team.
Correlate your objectives with a mentor’s objectives
It is often said that a mentor-protégé arrangement is like a marriage. In order for the arrangement to be successful, it has to have value for both parties. What will you offer to the arrangement that makes it worthwhile for the mentor?
- Skills the mentor does not have, such as cybersecurity expertise or subject matter expertise
- Access, perhaps through an existing contract, to agencies or buying offices where the mentor is not already a familiar name with a known reputation
- Facilities the mentor does not have, such as training rooms or geographical advantages
- Certifications or clearances, such as CMMI III or DCAA compliance or approved SCIF
- Lower costs, including low overhead rates
- Rapid ramp-up capabilities
Every mentor-protégé arrangement is a two-way street. Review what you have to offer and ask yourself what that is worth to a mentor. Be able to explain to potential mentors what your company is bringing to the table, as well as what you expect from the mentor.
Understand the constraints
Along with the current excitement about the All-Small program, there are numerous other mentor-protégé programs in existence in the federal arena. Each of these programs operates with a different set of constraints.
Obviously, the main constraints are the eligibility requirements that determine which set of small businesses are eligible to qualify as proteges. Some programs are specifically for companies in the SBA’s 8(a) Business Development Program; others are agency-specific. Some place limits on the acceptability of the larger business as a mentor.
Two of the most important constraints deal with the number of proteges a mentor can have, and the number of mentors a protégé can have. If a mentor is limited to only two protégés, and already has two, save your effort and find another candidate. If you can only have one mentor, you will need to be sure that a candidate is willing and able to meet all your objectives, or whether you will accept someone who can fulfill most if not all criteria.
Another key constraint is the allowable term. Mentor-protégé agreements may be limited to one, two or three years, or may have no fixed term length.
Can you achieve your objectives in an arrangement that is limited to one year? Alternatively, would you be disadvantaged in the marketplace by tying yourself to an agreement that continued long after you had achieved your desired results?
Other considerations
As you evaluate your objectives and options, there are several additional factors to keep in mind.
Affiliation describes the possibility that you will lose your small business status by engaging with a large business; it is certainly a situation you want to avoid. The SBA 8(a) mentor-protégé status is generally exempt from affiliation, as is the Defense Dept.’s mentor-protege program, but other agency programs do not share that exemption. The new All-Small program is generally exempt from affiliation and is suitable for non-8(a) companies.
Another factor revolves around the creation of joint ventures. Parties to a mentor-protégé agreement often decide to work together on a specific contract. The parties may team as a joint venture, or create a prime-sub relationship. Such joint ventures may qualify for affiliation exemptions if carefully documented and the protégé does not become overly dependent on or indebted to the mentor. Cover your bases carefully.
In a future column, we will discuss the next step – finding potential mentors.
Tom Johnson can be reached at tjohnson@setasidealert.com.
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