Hundreds of tech startups are launched yearly. However, failure rates are sky-high around the globe. Many companies can't make it after 5 years, demonstrating that good ideas for products or services are not enough to succeed.
Therefore, if you don't want to see your business sink and strive to become an industry leader, you must utilize all the available resources. And this includes the secret sauce of many successful startups, professional mentorship.
In the entrepreneurial world these days, mentoring is becoming an essential resource in the planning process. It helps founders take their first steps with more confidence to position the business, among several other benefits that we'll discuss later.
However, before digging into that rabbit hole, we would like to shed some light on the difference between mentors and coaches. People usually mistake these terms, which may lead to hiring the wrong person.
Both roles are prevalent nowadays, and even though they may resemble similar, mentors are focused on providing knowledge and support from their experience. On the flip side, coaches are usually oriented to change mindset, habits, and behaviors.
That being said, if you want to minimize the initial struggle when launching a new venture, you need an experienced professional. A mentor will give you valuable insights to make the right decisions and help you build a solid network.
We know that startups have tight budgets, though. But it is in the initial stages when companies make most mistakes. So, consider these trusted consultants a long-term investment.
What’s The Role Of A Mentor?
Many think that seeking a mentor is a sign of weakness. Well, it's time to ditch that disbelief. The right consultant will help you lead the company in the right direction, avoiding the most common pitfalls of the process. Their goal is to help founders with the frequent interrogations in the startup funding path, through the knowledge and experience they have acquired over the years.
Mentors can be divided into two categories. On the one hand, we have professionals who have succeeded with their own companies. And now they're dedicated to supporting founders with the experience they have earned. On the other hand, we have mentors with a business school formation. They provide a more technical approach focusing on marketing, finances, international expansion, and others).
A mentorship can be divided into three stages: initial, acceleration, and growth. They act as incubators of the idea during the initial phase and focus on how the product or service will be launched.
This is followed by the acceleration stage, where mentors work on specific subjects, such as how the income will be generated and how results will be measured. Finally, in the third phase, the startup formalizes its operations, and mentors focus on management.
How Your Startup Can Benefit From Mentoring?
Now we have given a picture of the role of mentors, and we’ll now discuss the benefits of startup mentoring.
Famous businessman and investor Richard Branson once said, "No matter how incredibly smart you think you are, or how brilliant, disruptive or plain off-the-wall your new concept might be, every startup team needs at least one good mentor. (...) No matter who you are, where you’ve come from, or what you have achieved, a good mentor is an invaluable asset in business. Building a new business takes more than technical skills and creative genius.”
There are several aspects where mentors can make significant contributions to the company. Some of the most relevant contributions are:
Avoid Common Pitfalls
Mentors have already been where you are now. They have already answered the same questions you are making now, sharing insights on how their journey was. Launching a startup entails some challenges that sometimes can be paralyzing and end up in mistakes. A good advisor will help you navigate those rough waters, avoiding common missteps.
Help Save Time and Money
Think about how much time and money you would spend if you had to learn from your own mistakes? These two are pillar assets during the entire business life. And yes, there'll be trial and error, but mentors can minimize the number of failures and the impact on the initial stages. Consequently, founders can save time and money that they can spend on improving the startup development.
Build a Solid Network
Experience is not the only benefit of having a mentor working by your side. They can help you enlarge your network, which is essential for business growth. Moreover, they can share the networks they have built during their years of work. Therefore, startup mentoring can help you find investors, make new connections, and know other founders.
Provide Realistic Perspectives
Starting a new business comes with a lot of enthusiasm, which is good, but can blur your vision regarding expectations. A good mentor can give honest and realistic perspectives on the vision and goals of the company. Mentorship is key when it comes to decision-making and taking or not the next step towards growth. A professional consultant will be the first to tell you honestly that you're not ready yet.
Motivate During Tough Times
Difficult times are part of the scaling process of every company, and sometimes they are unavoidable. Motivation during those moments is crucial to avoid making desperate moves and remain calm. By providing support, mentors allow founders to have a clearer vision of how to proceed.
Parting Thoughts
Mentorship is a vital resource for founders. Having a product idea that fills a gap in the market is great, but not enough. A professional mentor will help you outline the strategy to fit that product in the market with their experience based on their own triumphs and pitfalls. Trust those who have already paved the way and gain new perspectives for your business.
If you wish to provide your experience as a mentor to Latin American founders in our programs at Base Miami, reach out to us today! LET'S CHAT!
