The value of guidance: Find the right mentor now

By James S. Cassel

The adage “No man is an island” applies as readily to small or middle-market businesses as it does to an individual — perhaps even more so. According to a 2018 survey by SCORE, the network of volunteer business mentors, mentored businesses are 12% more likely to remain in business after one year, compared to the national average. In terms of revenue, businesses that sought guidance saw a “seven to eight-fold increase compared to those who were not mentored.”

If a small or middle-market business is to get ahead in a competitive environment, it should become familiarized with the wide range of resources that provide quality business mentoring and senior-level advice. These run the gamut from business coaches and advisory boards to formal boards of directors.

Depending on the type of mentoring engaged and the experience and skill set of the mentor, the benefits of receiving guidance cover a broad spectrum from obtaining direction on high-level matters such as strategic planning, to enhancing employee satisfaction.

Business operators can gain invaluable expert advice, tapping into the experience of others and harnessing a wealth of well-honed know-how. Unbiased and frank opinions — which can be hard to elicit from people on your payroll — are also available through mentoring, coaches or advisors, as are the diverse perspectives and innovative ideas essential for a company to stay relevant.

Hard as it can be for some corporate egos to digest, good advisors can teach you things you didn’t know, be a sounding board and expand your knowledge base. They act as an objective source with no dog in the hunt. If a company isn’t committed to learning and being innovative, it’s only a matter of time before it starts slipping behind more zealous competitors.

Mentoring is also a means to expand your network, gaining contacts and opening doors which might otherwise stay locked.

When selecting the business advisors most appropriate for your business, consider whether formal or informal, or a mix of the two, is the best fit.

A board of directors, for example, is a governing body that can provide high- level direction and advice as well as set policy, but this is a formal arrangement and you will have to answer to them. If you prefer a more informal, flexible approach, an advisory board can provide advice about achieving immediate business goals and on issues happening on an operational level.

If you want an even less formal but by no means less effective relationship, high-quality mentoring organizations abound. Joining Vistage Worldwide Inc., a group that provides “valuable perspectives from a trusted group of peers, professional guidance from an accomplished business leader, and deep insights from subject matter experts,” can be useful. Being selected by Endeavor, which is dedicated to matching entrepreneurs with personal mentors, is also an excellent opportunity.

One of the best mentoring organizations out there is SCORE. It offers volunteer business mentors, most of whom are retired business executives with decades of know-how, battle-tested experience and lots of time on their hands to help a fledgling business. Best of all—SCORE is free!

Other options include business coaches and one-on-one mentors who come to your business and can glean a helpful inside perspective.

Many giants in business not only benefitted from good guidance, but without it they might have fallen short. Facebook’s Mark Zuckerberg was mentored by Steve Jobs who in turn was mentored by Mike Markkula, one of the early executives at Apple. Jack Welsh at GE had acclaimed author Ram Charam as his business advisor and mentor.

At Google, executive chairman Eric Schmidt served as mentor to the then young co-founders, Larry Page and Sergey Brin. Interestingly, this mentoring relationship began when Google was already a giant and going strong—proof that expert guidance is vital at every stage of a company’s development.

Mentoring comes in many forms, but regardless of the option(s) pursued, there is no doubt that the result for a business can mean the difference between sinking or swimming. Don’t hesitate; find the right mentor now.

James S. Cassel is co-founder and chairman of Cassel Salpeter & Co., LLC, an investment-banking firm with headquarters in Miami that works with middle- market companies. He may be reached via email at jcassel@casselsalpeter.com or via LinkedIn at https://www.linkedin.com/in/jamesscassel.

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Will an MBA Help You Become an Investment Banker?

By Ilana Kowarski 

An MBA from a highly ranked business school is a major plus for aspiring investment bankers, experts say.

IF YOUR DREAM IS TO become an investment banker at a multinational bank like JPMorgan Chase & Co., then an MBA degree from a top business school may help you achieve that goal, according to experts who have been on this career path or have placed MBA students in investment banking positions.

It is possible for a student from any MBA program to become a successful investment banker, says Karin Ash, a former university career services official who spent seven years helping MBA students find investment banking jobs.

However, the most prestigious investment banking firms tend to choose the bulk of their MBA hires from highly ranked business schools, says Ash, who is now an admissions consultant with Accepted, an admissions consulting firm. “So, while any student from any school could ‘make it,’ it is easier to be noticed if you attend a highly ranked school,” she wrote in an email.

Can You Get an Investment Banking Job Without an MBA?

Current and former investment bankers acknowledge that it is possible to get a job at an investment bank without an MBA degree, and they note that investment banks often recruit analysts from prestigious undergraduate institutions. However, they warn that individuals who did not go directly from college to the investment banking industry may struggle to gain a foothold if they do not obtain an MBA.

Somebody with a business-related undergraduate degree from a college with a strong business program may not need an MBA to enter the investment banking industry, says James Cassel, chairman and co-founder of the Cassel Salpeter & Co. investment banking firm in Miami. However, for someone without an undergraduate business degree, an MBA can significantly improve the odds of getting investment banking job offers, he says.

Cassel, a former securities lawyer who transitioned from a legal career into the investment banking sector, notes that he took a nontraditional path into the industry. He says it’s more typical to enter the sector immediately after either college or business school.

The best way for college graduates who are working outside the investment banking sector to pivot into the industry is to pursue an MBA degree, says Delano Saporu, a former investment banker who is now a financial advisor and the founder of New Street Advisors Group financial advising firm in New York City.

Saporu, who earned an MBA from the University of Chicago Booth School of Business, says attending a top B-school offers abundant opportunities to network with investment bankers and meet investment banking recruiters. He adds that getting to know the “gatekeepers” of the investment banking profession makes it easier to enter the highly competitive and selective industry.

Saporu’s choice to pursue an MBA was driven by his interest in investment banking. “I just wanted more of a challenge,” he says.

What Investment Bankers Do and How Much They Earn

Unlike banks that focus on serving the general public, investment banks tend to cater to corporations and other large institutions. They help businesses, governments and other organizations raise capital through sale of stocks or bonds. They also assist with mergers and acquisitions, and they may provide money advice.

An allure of the investment banking profession is the generous compensation that investment bankers receive. Entry-level compensation often exceeds $120,000 per year when base salary and various bonuses are combined, and the pay for higher-level investment bankers is even better. Leaders at investment banking organizations, such as managing directors, may earn more than $1 million per year.

It’s important to note, however, that investment bankers typically work exceptionally long hours. In a single week, an investment banker may clock 50 to 60 hours or more, and someone with a particularly demanding job may work 80 to 100 hours.

What Is the Job Outlook for Investment Bankers?

Competition is fierce for entry-level positions in the investment banking industry, since it is a high-paying occupation and seems glamorous, experts say. In addition, there has been significant instability in the global investment banking industry since the Great Recession, which caused many investment banks to downsize and caused some – like Lehman Brothers Holdings Inc. – to collapse.

In its 2019 report predicting the future of banking and capital markets, international accounting and consulting firm Deloitte had this to say about the long-term outlook for investment banks: “The global investment banking industry has yet to find its footing after the financial crisis. However, the industry seems to be inching back to normalcy, in terms of capital adequacy and profitability.”

This August, Moody’s Investors Service – a U.S. credit rating agency – downgraded its outlook for the global investment banking sector from positive to stable. Moody’s warned that global economic growth was slowing and that interests rates were low, which could result in a reduction investment banking activity during the subsequent 12 to 18 months.

“The prospects are pretty good in the investment banking industry at the moment,” Cassel wrote in an email. “However, as real signs of a recession emerge this will change. At some point, firms will slow down their hiring and start to cull their staff as business stops being as robust.”

What Type of MBA Degree Helps People Become Investment Bankers?

The prestige of an MBA program tends to have a significant influence on whether its students receive job interview invitations from investment banks, Cassel says. For individuals determined to find jobs at top-tier investment banks, Cassel says an MBA from a highly regarded B-school would be very “important and helpful.”

He says MBA grads from top-20 business schools have a significant advantage in the investment banking hiring process. “The problem is, you may get just as good an education from not-a-top-20 school, but it’s very difficult to get the entree in or to get into the hiring process unless you have that on your resume,” he says.

Cassel suggests that MBA hopefuls who are interested in investment banking choose a business school with a solid finance curriculum, plus strong courses in other disciplines. “Know more than how to crunch numbers,” Cassel says, adding that MBA students with dreams of working for investment banks should take courses in marketing, human resources and technology in addition to their finance classes.

Although it is harder for MBA students from lower-ranked business schools to start an investment banking career than students from higher-ranked MBA programs, it is possible if they reach out to alumni of their schools who work at investment banks, he adds.

“They generally can’t get you the job,” he says, “but they may get somebody to look at your resume.”

Click here to view the PDF.

Will an MBA Degree Help You Become an Investment Banker?

By IIana Kowarski

If your dream is to become an investment banker at a multinational bank like JPMorgan Chase & Co., then an MBA degree from a top business school may help you achieve that goal, according to experts who have been on this career path or have placed MBA students in investment banking positions.

It is possible for a student from any MBA program to become a successful investment banker, says Karin Ash, a former university career services official who spent seven years helping MBA students find investment banking jobs.

However, the most prestigious investment banking firms tend to choose the bulk of their MBA hires from highly ranked business schools, says Ash, who is now an admissions consultant with Accepted, an admissions consulting firm. “So, while any student from any school could ‘make it,’ it is easier to be noticed if you attend a highly ranked school,” she wrote in an email.

Can You Get an Investment Banking Job Without an MBA?

Current and former investment bankers acknowledge that it is possible to get a job at an investment bank without an MBA degree, and they note that investment banks often recruit analysts from prestigious undergraduate institutions. However, they warn that individuals who did not go directly from college to the investment banking industry may struggle to gain a foothold if they do not obtain an MBA.

Somebody with a business-related undergraduate degree from a college with a strong business program may not need an MBA to enter the investment banking industry, says James Cassel, chairman and co-founder of the Cassel Salpeter & Co. investment banking firm in Miami. However, for someone without an undergraduate business degree, an MBA can significantly improve the odds of getting investment banking job offers, he says.

Cassel, a former securities lawyer who transitioned from a legal career into the investment banking sector, notes that he took a non-traditional path into the industry. He says it’s more typical to enter the sector immediately after either college or business school.

The best way for college graduates who are working outside the investment banking sector to pivot into the industry is to pursue an MBA degree, says Delano Saporu, a former investment banker who is now a financial advisor and the founder of New Street Advisors Group financial advising firm in New York City.

Saporu, who earned an MBA from the University of Chicago Booth School of Business, says attending a top B-school offers abundant opportunities to network with investment bankers and meet investment banking recruiters. He adds that getting to know the “gatekeepers” of the investment banking profession makes it easier to enter the highly competitive and selective industry.

Saporu’s choice to pursue an MBA was driven by his interest in investment banking. “I just wanted more of a challenge,” he says.

What Investment Bankers Do and How Much They Earn

Unlike banks that focus on serving the general public, investment banks tend to cater to corporations and other large institutions. They help businesses, governments and other organizations raise capital through sale of stocks or bonds. They also assist with mergers and acquisitions, and they may provide money advice.

An allure of the investment banking profession is the generous compensation that investment bankers receive. Entry-level compensation often exceeds $120,000 per year when base salary and various bonuses are combined, and the pay for higher-level investment bankers is even better. Leaders at investment banking organizations, such as managing directors, may earn more than $1 million per year.

It’s important to note, however, that investment bankers typically work exceptionally long hours. In a single week, an investment banker may clock 50 to 60 hours or more, and someone with a particularly demanding job may work 80 to 100 hours.

What Is the Job Outlook for Investment Bankers?

Competition is fierce for entry-level positions in the investment banking industry, since it is a high-paying occupation and seems glamorous, experts say. In addition, there has been significant instability in the global investment banking industry since the Great Recession, which caused many investment banks to downsize and caused some — like Lehman Brothers Holdings Inc. — to collapse.

In its 2019 report predicting the future of banking and capital markets, international accounting and consulting firm Deloitte had this to say about the long-term outlook for investment banks: “The global investment banking industry has yet to find its footing after the financial crisis. However, the industry seems to be inching back to normalcy, in terms of capital adequacy and profitability.”

This August, Moody’s Investors Service — a U.S. credit rating agency — downgraded its outlook for the global investment banking sector from positive to stable. Moody’s warned that global economic growth was slowing and that interests rates were low, which could result in a reduction investment banking activity during the subsequent 12 to 18 months.

“The prospects are pretty good in the investment banking industry at the moment,” Cassel wrote in an email. “However, as real signs of a recession emerge this will change. At some point, firms will slow down their hiring and start to cull their staff as business stops being as robust.”

What Type of MBA Degree Helps People Become Investment Bankers?

The prestige of an MBA program tends to have a significant influence on whether its students receive job interview invitations from investment banks, Cassel says. For individuals determined to find jobs at top-tier investment banks, Cassel says an MBA from a highly regarded B-school would be very “important and helpful.”

He says MBA grads from top-20 business schools have a significant advantage in the investment banking hiring process. “The problem is, you may get just as good an education from not-a-top-20 school, but it’s very difficult to get the entree in or to get into the hiring process unless you have that on your resume,” he says.

Cassel suggests that MBA hopefuls who are interested in investment banking choose a business school with a solid finance curriculum, plus strong courses in other disciplines. “Know more than how to crunch numbers,” Cassel says, adding that MBA students with dreams of working for investment banks should take courses in marketing, human resources and technology in addition to their finance classes.

Although it is harder for MBA students from lower-ranked business schools to start an investment banking career than students from higher-ranked MBA programs, it is possible if they reach out to alumni of their schools who work at investment banks, he adds.

“They generally can’t get you the job,” he says, “but they may get somebody to look at your resume.”

Click here to view the PDF.