Questions To Ask A Business Mentor
Running a business isn’t child’s play, especially if you’re putting together a startup. The encouraging news is that you don’t have to do it alone. Seeking the guidance and counsel of someone who has walked that road before will make the journey much more manageable.
Having a business mentor in your corner significantly increases your chances of success. But say you’ve found yourself the best business mentor possible; how exactly can you make the most of the opportunity? In other words, do you know the best questions to ask a business mentor?
The key is to ask questions with answers that make the most impact on your business journey. You can ask many standard questions, but you don’t have to adopt a cookie-cutter approach that doesn’t address your individual needs. The beauty of a business mentorship is that it’s tailored to you.
Some issues worth looking into include raising startup money for a business and taking operational risks into account. You may also simply ask them to detail their business journey and share the significant challenges they faced and how they came out on top.
How Do I Raise Capital For My Business?
Research into the development of new businesses suggests that raising capital is one of the hardest things for any entrepreneur to do. Not everyone about to start a company has the privilege of funds lying around. If you do, that’s great. If you don’t, asking a mentor about the different ways to raise capital for your business should be a top priority.
You’ll probably need a business proposal to show a potential investor; you could download a standard template online. But getting advice on approaching the proposal from someone who’s successfully done it before is priceless. Also, pitching your startup plan requires some level of unique skill set. Your business mentor is better suited to equip you with the necessary skills to clinch the deal.
As you can imagine, it’s a big ask to convince someone to believe in your dream and invest in your vision. As such, rejection from several investors is part of the game. Quitting at the first bump won’t help you realize your dream.
A business mentor will advise you on how to handle different scenarios and keep your head up in the face of rejection. Also, at some point, you’ll need to invest your business proceeds for continuity’s sake and financial stability. As such, inquiring about the four types of investments is advisable.
What Are The Risks Involved When Running A Business?
Running a business is a risky affair; nine out of ten startups will fail. This is a grim statistic, and several factors explain it. Reasons include the mismanagement of funds, a lack of necessary skills required to run a business, and a weak management team.
Any established business owner has had their fair share of failures. The fact that they are still in business speaks volumes about their understanding and experience in overcoming hurdles.
Tapping into that wealth of knowledge will help you better understand the imminent risks and how to tackle difficult situations should you find yourself stuck in one. Make sure you ask about the additional risks associated with running a business, such as financial, reputation, economic, operational, and competition risks.
What Are The Four Types Of Investments?
Mismanagement of funds is one of the biggest threats to a business’s continuity. The moment a company fails to manage its funds effectively, its viability is compromised.
Once you start to turn a profit, a knowledgeable investor will advise you to invest some of those proceeds. Investments are crucial to your company’s financial stability in the long term. Businesses do not operate in a vacuum; several variables directly affect operations and bottom lines.
In some cases, you have little to no control over these factors. Take the Covid-19 pandemic, for example, that has plunged several businesses, even established ones, into dire financial straits. Some companies have even shut down as a result.
Having long-term investments can provide somewhat of a financial cushion for unforeseen events, and can allow you to weather the storm.
A business mentor is the perfect person to ask about the different types of investment. They’ll likely tell you about the main four types: shares, property, fixed-interest, and cash. They’ll be able to provide their own experiences of each, but here are our thoughts.
Each type of investment attracts different levels of risk and returns. Your business’s financial goals will dictate how you feel about each kind of investment. A mentor will be able to discuss these further with you.
For instance, investing in property or shares is ideal if you’re looking for long-term investments. Such investments are risky but avail higher returns when you stick them out.
On the other hand, cash or fixed interest is more of a short-term investment. These are less risky options but have lower returns. Ask your business mentor to walk you through the different types of investments and the risks involved.
Conclusion
For optimal business navigation, finding the right mentor for you is a serious task. The best mentor will provide you with detailed insights, as they’ve walked the same path before. There’s so much to learn, and so making sure to ask the right questions will unlock that knowledge for you.
Of course, every relationship between a business mentor and mentee varies. But there is standard information every new startup owner must know. Raising capital, the risks associated with running a business, and how to invest are excellent examples. Never take the opportunity to learn from your mentor lightly. Prepare for each mentoring session adequately by asking hard-hitting questions, and you’ll find that the advice you receive is invaluable.