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The Value of a Mentor

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One of the most useful tools a business operator can implement is a business mentor. A Mentor is usually a businessperson who can provide advice, knowledge, experience and a network to a new or existing business. Mentors usually spend a few hours per week with a business owner, time which is provided free of charge.

The biggest value a Mentor can bring is that they have likely already been there or done what you are trying to do. In other words, they have lived through the perils of running a business and can identify what the pitfalls will be. This means that you are able to benefit from their previous successes and failures. This not only saves you time and money, but also the embarrassment of making the wrong decision.

Mentors have an extensive and established network consisting of people and businesses with varied backgrounds. A mentors network can provide the business owner with connections to new clients, financial assistance, like-minded entrepreneurs, potential employees and investors for example. Not only can a well-rounded network provide you with the above-mentioned connections, but it also can speed up the time required to access or obtain information or make specific contacts.

Most people who get involved in mentoring do so because they want to make a difference and enjoy helping other like-minded entrepreneurs. While most mentors are looking to get something out of the relationship, quite often it is no more than having the satisfaction that they have helped another entrepreneur become successful. Mentors are only interested in making your business run better. Other interests do not influence them, such as you might find from your banker, customer or supplier.

Mentors are also interested in keeping the business owner on track and focused. Since mentors are providing their services for free, they tend to maximize their efficiency by ensuring the business owner is actually staying on track and following the mentors advice. Most mentors are not going to get involved in the day-to-day operations of the business. Instead they will concentrate on working with a few critical and crucial issues. Normally they will provide some possible solutions or contacts and leave it to the business owner to act upon them.

No cost to the business operator is another significant reason why mentors are valuable. Buying lunch or taking them out for a round of golf is usually more than any mentor expects to receive. While the adage regarding you get what you pay for can’t be ignored, the value of a mentor will certainly prove that they are worth their weight in gold.

While it is possible that your mentor may eventually provide capital or become a part owner of the business, they will always end the mentorship relationship beforehand. Again, a mentor can be quite valuable if you are looking to find financing or sell shares in the business. Most mentors will have experience with these issues and can thus help you to avoid the pitfalls. They will also help to legitimize your financing requests or sale of shares.

While a mentor isn’t meant to replace a financial or business manager, they will provide independent advice, knowledge and experience which will prove to be invaluable to any business owner.

Next week: Where to find a Mentor. 

Myron Gordon owns TMSG Management Services Group, which provides management and financial services to growing businesses.
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