11 Surprising Facts About Business Mentorship and Why They Matter
You and a friend are alone in the woods.
Yogi, the bear's evil friend, Ripper (Yogi's hungry helper) shows up.
Who would you rather try to outrun? Your friend or the bear?
Easy decision… Right?
But choosing the right competitors to compete against,.. not so much. Picking the wrong one and you can end up Ripper’s next lunch!
Did You Know…
70% of small businesses that receive mentoring survive five years or more, twice the rate of those who don’t have mentoring relationships.
Just for you 😊, we collected cold hard facts (and my personal experience) about the benefits of business mentorship and how you outsmart the competition.
Facts, not feelings –
Let's face it, in business, feelings are nice, but facts are essential.
Ready to level up your business?
Keep reading.
1. Revenue Growth:
Small businesses with mentors experience higher revenues. The guidance and support from mentors enable these businesses to make more informed decisions, leading to better financial performance (SBA.gov).
Avoid Costly Mistakes
Pricing is a nightmare for many solopreneurs. Even if you eventually crack the code, the financial losses from missteps can be devastating, not to mention the damage to your product's value. Overcharging is a different beast altogether, capable of killing your business.
I know firsthand. My nine-year stint in property preservation was a multiple six-figure rollercoaster, it was brutal. After countless headaches, I finally brought in a processing company.
Huge Advantage.
These experts worked directly with banks and handled bids for damaged foreclosure properties. They understood the maximum payouts, something I was clueless about. When we saw their bids and were shocked – we’d been lowballing ourselves; big time, for YEARS…
Experience is priceless.
2. Survival Rate:
Businesses that receive mentoring early on have double the survival rate. Specifically, 70% of mentored businesses survive more than five years, compared to the average rate of less than half of non-mentored businesses (SBA.gov).
Coach for Success
A football coach isn't just about physical training; they're the architect of mental fortitude. They instill discipline, resilience, and the ability to overcome adversity - qualities necessary for high performance.
Players seek out the best coaches because they understand that superior coaching equates to greater results. It's about more than just learning plays; it's about unlocking potential.
In business, a mentor is that coach.
They guide strategy, build confidence, and prepare you for unexpected challenges. A great mentor doesn't just teach; they inspire, challenge, and empower, ultimately transforming your business from a good idea to a thriving enterprise.
3. Increased Business Growth:
Mentorship leads to increased business growth. Mentored businesses tend to expand faster and more sustainably, leveraging the experience and networks of their mentors (SBA.gov).
Spotting Opportunities for Growth:
It's tough for business owners to see the big picture. Most owners don’t have the time or the know-how to identify potential problems.
A business coach or consultant is like a seasoned detective, uncovering issues before they become crises.
These experts use proven tools and data to guide your business forward, focusing on steady progress rather than unrealistic expectations. By analyzing market trends and recommending growth strategies, they help you navigate your business with confidence.
4. Access to Networks:
Mentorship provides access to extensive networks, including potential clients, partners, and investors, which can significantly enhance business opportunities and growth (SBA.gov).
Leverage Expert Connections
Guess what? You may be the man or woman, but chances are you don’t have the resources your mentor has. As opposed to working on income-producing activities or cold outreach (which is time-consuming (as heck), your consultant can make a few phone calls and voilà.
Mentors have a track record and can accelerate this process by introducing you to key players who know, trust, and like them. It's about leveraging their established network to open doors and create opportunities for you.
A survey by the UPS Store found that 70 percent of small businesses that received mentoring survived more than five years – double the survival rate of non-mentored businesses. The same survey found that 88 percent of business owners with a mentor said that having one was invaluable
5. Improved Business Planning:
Mentors help businesses with strategic planning and goal setting that is needed for long-term success. Guidance helps brands stay focused and aligned with their objectives (SBA.gov).
Just as if you were planning a trip to New York. Would you jump in the car and start driving? You could, but if you'd never been, a map or GPS would be good. If you choose the latter, you'll arrive right on time with the least number of U-turns.
One of my mentor's mantras was "strategy over strength." A written plan provides a clear vision and strategic approach.
6. Avoiding Common Pitfalls:
Mentors help businesses avoid common pitfalls through their real-life experiences and insights. This proactive guidance can save businesses time, money, and resources(SBA.gov).
Falling isn't the end of the world.
But I just watched a runner in the Olympics fall. Although she had mad speed and skills, she lost the race. Yes, things will happen, but what about the pitfalls you can avoid?
Like a mother advising teenagers (we've all been there). As parents, we can spot a bad apple on the first visit. Why fall and bump your head when you can learn from the bruises your mentor or other businesses experienced? You can gain wisdom and prevent setbacks.
7. Invaluable Support:
88% of business owners with a mentor consider the relationship invaluable for navigating business challenges and making strategic decisions (SBA).
Essential Assist:
Building a successful business can be a lonely journey. Even the most determined entrepreneurs need a support system. A business mentor provides guidance, encouragement, and a listening ear.
They understand the challenges and celebrate your victories. Just like it takes a village to raise a child, it also takes a strong support network to build a thriving business.
8. Higher Confidence:
Entrepreneurs with mentors report higher confidence in their business decisions, reducing uncertainty and stress (SBA.gov).
Some athletes lack confidence so much that they quit. An athlete who doubts their abilities will underperform every time. We've all watched basketball games where the shooter's lips move before, they throw the ball up. An advisor fosters a belief in your abilities.
They offer encouragement, provide constructive feedback, and help you overcome self-doubt. It's about developing the mental toughness to take risks and pursue aggressive goals.
9. Tailored Advice:
Mentors provide tailored advice specific to the business's industry and unique challenges, ensuring relevant and actionable guidance (SBA.gov).
A generic workout plan won't transform an athlete into a champion. They need personalized training tailored to their strengths, weaknesses, and goals. In business, a mentor provides customized advice based on your industry, challenges, and aspirations. It's about receiving guidance that's directly relevant to your situation.
10. Increased Job Creation:
Mentored businesses are more likely to expand their workforce, contributing to job creation and economic growth. The support and resources from mentorship enable businesses to scale effectively (SBA.gov).
Driving Growth and Job Creation:
Increased Job Creation: A successful sports team generates revenue, which leads to expansion and job creation. A business mentor helps you achieve growth and scalability, leading to increased employment opportunities. It's about building a thriving enterprise that contributes to the overall economy.
11. Enhanced Job Performance:
New employees who receive mentorship outperform their peers by 18% in job performance metrics (Harvard Business School) (HBS Working Knowledge).
Building a High-Performing Team:
Your employees are the backbone of your business. Effective training is essential for their success and your company's growth.
5 Tips for Effective Employee Training:
Set Clear Expectations: Clearly define roles and goals from the start.
Create a Structured Onboarding: Provide a comprehensive welcome process.
Show, Do, Teach: Demonstrate tasks, let employees practice, and then have them explain it, back to you.
Encourage Open Communication: Foster a culture of questions and feedback.
Prioritize Ongoing Development: Offer continuous learning opportunities.
Well-trained employees are more confident, productive, and loyal. Investing in their development is an investment in your business's success.
Conclusion:
As solopreneurs, we obsess over our ideas. Business isn't about what you think; it's about what works and what your customers think. I think Sophisticated Cloud is a great representation of that.
And since the internet tracks our every move... Let's just say it's game over.
So, you can do one of two things: continue to build, grow, and scale your business alone (lone ranger) or duplicate success (the fast track).
Mentorship offers countless benefits. It can be found in various forms, from formal coaching to informal advice.
By seeking guidance from experienced individuals, you can accelerate your business growth and overcome challenges.
I encourage you to explore mentorship opportunities. Remember, you don't have to navigate the business world alone.