"You would be amazed how many businesses can't tell me what they sell.
"If they don't know where they get their money, they haven't got a business, they have a hobby.
"I ask them what they sell."
The second question was how did the person in the street know what services the business was offering, she said.
People could be highly skilled at what they did but had never thought of marketing those skills.
"People need to know you are there.
"It's a basic problem, but it's very common."
One of the rules of business was that 20% of customers usually provided 80% of your income but businesses had to find the next level - what services generated that 80% of income.
If businesses found out where their income was being generated, they could make sure they concentrated on areas that were the most profitable.
For a hairdresser, that could be hair colouring rather than perms.
"You need to think of the easiest way to get the most income and provide the best service."
Small business owners were usually passionate about what they did but they had to watch they were not taken advantage of in any business deals.
They should never be afraid of asking for professional advice on business deals to ensure they were fair, Mrs Aldridge said.
When she arrived at a business to provide mentoring assistance, Mrs Aldridge listened to her client to find out what they were wanting.
Mostly, it was about needing more customers or help with a budget.
While she did not provide help with a budget, she recommended the people wanting that service ask the Otago-Southland Employers Association to provide a mentor with those skills.
The association was the agent for Business Mentors New Zealand.
However, her husband, Trevor Hislop, also a mentor, did provide that sort of help when he was assisting businesses.
They have both been mentors for more than eight years because they felt they could give something back to the business community.
Mrs Aldridge also asked more about the business and what owners would like done that would help.
Sometimes, it was just down to not having a system in place for employing staff even though employment contracts were required by law.
Business owners were sometimes too friendly with their staff and were taking on the duties they were paying others to perform, she said.
"Employers have every right to ask staff to perform the duties they were being paid for."
In one case, Mrs Aldridge was mentoring a bakery owner who had allowed one of his employees to start a catering business using not only the kitchen and ovens, but also ingredients.
When she asked why that was allowed to happen, the owner said he "didn't want to be mean".
"That's not being mean; that is business.
What was going to happen in a year when the staff member went out on her own in competition?"
There was no quick fix that could be rolled out on each mentoring visit, she said.
Each business was different.
Mrs Aldridge was a small business person herself with an office and one support person.
Many others were like that but each had different circumstances.
However, there were benefits from being a small business owner.
They were nimble and could respond to changing circumstances quickly.
"When something happens, we don't have to go through a board or a leadership team."
She urged small business owners to belong to professional organisations like the Otago-Southland Employers Association where they could receive good advice for a modest membership fee.
She also believed it was sensible to buy professional advice and develop a good working relationship with lawyers, accountants and business advisers.
There were times as a mentor when she felt the owner had to make a hard call about their future.
Sometimes, she could see the person did not want to take the advice about the changes they might like to consider.
"People in business on their own often don't like to be seen competing with others.
"They feel it is unkind to their colleagues.
"That's not a business mentality.
"Even if they are employing no-one else, they are employing themselves and that has freed up a job for someone else."
Mrs Aldridge's final warning for small business owners was to remember to pay their tax.
She had an account specifically for tax, which she always paid because not to do so put more pressure on a business operation.
The best piece of advice she could offer during the downturn was to never spend your last $20: you never knew what was going to happen tomorrow.
Mentoring help
• Business Mentors New Zealand 0800 209-209 www.businessmentors.org.nz
• Upstart 03 471-9974 www.upstart.org.nz
• Biz 0800 424-946 www.bizhealth.co.nz
• DCC Economic Development Unit 477-4000 www.dunedin.govt.nz/business
• Accountants and lawyers. Some offer first hour free.Check Yellow Pages
• Ministry of Economic Development www.business.govt.nz
• New Zealand Trade and Enterprise 0800 555-888 www.nzte.govt.org
• Te Puni Kokiri 04 819-6000 www.tpk.govt.nz
• Institute of Accredited Business Consultants www.iabc.org.nz
• Otago Southland Employers Association 03 455-5165
• Otago Chamber of Commerce 479-0181 www.otagochamber.co.nz
• NZ Federation of Business and Professional Women www.bpwnz.org.nz
• YWCA Angel Fund 03 453-6751 www.ywca.org.nz/dunedin
• Industry associations
