Indeed Schlesinger does, because it provides him with an opportunity to reiterate his strongly felt message: "My best advice is that this is a gem of a business and they haven't come close to exploiting the potential of it," he says. "That's my gut. But they get what they pay for."
Of course, they don't pay a cent. "We could never afford the brainpower he gives us," says Fialkow. "At times, it's like going to a shrink."
That means that sometimes what Schlesinger -- or for that matter, any of the mentors -- has to say is painful. Their meetings with the National Leisure founders aren't just pep rallies; mentors have talked to them both harshly and convincingly about pulling away from joint ventures (Schlesinger), postponing geographical expansion (Gerson), and hiring a chief financial officer ("They all told us to do that," notes Benard-Cutler). Sometimes a mentor's job is simply to shake them and hope they wake up in time.
So it was this past January, when the war broke out. Gerson reinvigorated Fialkow and Benard-Cutler; after leaving his office, they hunkered down in a fish restaurant and drew up plans for managing a business that stayed flat instead of growing 50%. The next day Fialkow called Schlesinger. Schlesinger talked the founders though their P&L, scrutinizing every cost. Act right away, he said, so you can get through this and pick up market share.
They stopped remodeling four stores; they laid off 11 salespeople (roughly 10% of employees); they tightened and tweaked here and there. "It hurt," says Benard-Cutler.
But it worked. Although 1991 seems to be a year in which the industry is going nowhere, the company expects sales to increase about 25%. "What we have done is just a smorgasbord of things people have told us," says Fialkow. "We just try to keep learning from every person we meet."
If they keep growing, though, they may not have time to meet as many people. "When you get bigger, it gets difficult to find time to listen," says Gerson. Stuart Moldaw, a retired venture capitalist who can be counted among their mentors, cautions that "when you are a young man you listen pretty well, but then you start to think you know all the answers." Adds Leo Kahn, "All businesses are details; I've told them that." But the two founders of National Leisure aren't particularly worried about losing touch. "Not us," says Benard-Cutler.
His partner twirls a lollipop inside his mouth. "It'll never happen," Fialkow adds. "Because if it does, one of these people is bound to tell us."
THE ART OF BEING MENTORED
HOW TO PICK THEM . . .
Here are some of the questions to ponder when evaluating potential mentors:
* Is that person ready to share? Typically, young entrepreneurs on their way up simply don't have the time -- or ego -- to offer helpful advice. But people who have reached a certain level of material success get personal satisfaction from seeing others succeed. "We never go to a big braggart," says Joel Benard-Cutler, National Leisure's president.
* Can that person understand your business? If you are an entrepreneur, a surgeon probably isn't the best mentor. It helps to have some connection. Mentor Leo Kahn, for example, hasn't run a travel agency, but he has run low-margin, labor-intensive businesses.
* Does that person have credibility? "The mentors may say all sorts of obvious things, but hearing them from someone who has been there means something," says David Fialkow, National Leisure's executive vice-president. For the most part, National Leisure's mentors have run companies themselves and have battled many of the problems Fialkow and Benard-Cutler now face.
* Will that person share your values? National Leisure's founders love to talk about how they gave up six-figure salaries to start and build their business. If, after hearing about their long friendship and their serious investment, a potential mentor suggests quick-hit strategies such as going public, that person probably doesn't have much to offer. "The guys we've talked to have had similar goals," says Benard-Cutler.
. . . AND HOW TO MAKE THE RELATIONSHIP WORK
Some tips for keeping mentors enthusiastic:
* Respect the mentor's time. "There's nothing that says these people have to sit down and chat with us," notes Joel Benard-Cutler. That's why he and David Fialkow ask only for a quick breakfast rather than a formal meeting. After that, they get together with mentors about once every two months.
* Be straightforward. "We are not looking for any capital, nor are we marketing our company for sale," Fialkow wrote in a letter introducing himself to potential mentor Leo Kahn. Kahn called the pair shortly thereafter. "With them," says Russell Epker, a venture capitalist, "there's never any hidden agenda."
* Shut up. Let the mentors do the talking. "We just ask questions," says Benard-Cutler. They show their seriousness about listening by actually implementing some of the ideas they hear. "That's the greatest compliment of all to someone," says Fialkow.
* Pay promptly. Not in money, of course. But in gratitude and feedback. "There have been a number of times when they have gone different routes from those I suggested," says Epker. "But they'll call and say, 'We just wanted you to know we did it this way, but we still appreciate your input.' " Sometimes mentors even get feedback from a third party. "I'm always running into people who say, 'David told us how you helped him.' "
