Business Mentoring Increases Small Business Survival Rates
Mentoring doesn’t just help young professionals gain the experience and wisdom they need in the workforce, it can also increase the likelihood of small business success.
That’s according to a new survey from SCORE, the nation’s largest network of volunteer, expert business mentors. The data shows that mentored businesses were 12% more likely to remain in business after one year, compared to the national average. This supports existing research that shows entrepreneurs with access to a mentor are five times more likely to start a business than those who do not have a mentor. READ MORE
Top Tips on Having a Mentor for your Small Business
Why should I have a Small Business Mentor?
You’re passionate about your business and love what you do, but the day-to-day running of a business is hard. It can also be a solitary job, with the stress of payroll, clients, and decisions about the next steps all on you.
One of the best ways to help yourself, and your business, is to get a business mentor, someone who has been there and done that to be your support.
HOW DOES A MENTOR HELP MY BUSINESS?
A mentor is someone who can help guide you during your entrepreneurship journey. Mentors can help you in a host of ways, including by:
- Providing perspective
- Offering practical solutions
- Encouraging you to keep going
- Providing key connections
Not enough? Small business owners report higher revenue and increased growth after working with a mentor. READ MORE
You Need a Mentor. Here’s Where to Find One for Free
Mentors have a crucial asset new business owners lack — experience.
1. Mentors put statistics back on your side.
The survival rate of new businesses is understandably intimidating to entrepreneurs, but those numbers can change drastically when you add a mentor to the equation. According to a survey by The UPS Store, 70 percent of mentored businesses survive more than five years. That’s double the rate of businesses that choose not to have a mentor.
New small business owners often lack one fundamental thing — experience. It takes years upon years, and sometimes lots of money, to gain the business experience to run a successful company. Mentors give you the opportunity to draw on that experience right away — and for free.
Running or starting a business will never play out precisely as you planned. When you hit a roadblock, small or large, mentors with business experience likely have come across something similar before and know strategies to move forward. Harvard Business Review surveyed 45 CEOs with formal mentor relationships, and 84 percent said as a result, they have avoided costly mistakes and became proficient in their roles faster. In the same study, 69 percent said mentors helped them make better decisions, and 71 percent were certain company performance improved. READ MORE
How to Develop a Mentoring Plan
A mentoring plan is a way to clarify and formalize a relationship between a mentor and mentee. Once you’ve been matched with your mentor or mentee, you can outline the specifics of your roles and define guidelines for the relationship, such as meeting frequency and location. Then, work together to describe goals and objectives. After you’ve established a plan, revisit it twice per year and adjust it as needed to maintain good progress.
PART 1. Establishing Roles and Guidelines