The Business Benefits of Being a Good Mentor

When you own a business, you want it to succeed. Yet 18% of businesses fail in the first year, 50% fail after five years, and 65% are gone by year 10, according to Bankrate’s 2022 Small Business Statistics. So what can you do to make sure your business continues to thrive and grow? Find a good mentor who can provide advice, guidance, resources, motivation, and emotional support to help you grow your business and avoid mistakes.

Traits of a Good Mentor

• Experience.  Has relevant experience in the field or industry for which they are mentoring.
• Resources. Has relevant resources in addition to advice that can help the mentee grow.
• Empathy. Has the EI/EQ to understand and relate to the mentee’s challenges, struggles and goals. A good mentor should be able to put themselves into the mentee’s shoes and offer guidance from their perspective.
• Good listener. An active listener who can understand and respond to the mentee’s needs. Open-ended questions and constructive feedback encourage growth.
• Committed, not casual. Committed to the development of their mentee and not just a passive resource.
• Non-judgmental. Puts their ego aside to let the mentee find their own path rather than having them duplicate your own.
• Patience. Willing to invest time and energy to help the mentee develop their skills and achieve their goals.
• Positive attitude. Able to motivate and inspire, while also being supporting and encouraging.
• Self-awareness. Knows their strengths and weaknesses, and how they can help someone else.
• Availability, with boundaries. Is available on the mentee’s schedule, not their own.
• Motivational. Provides encouragement and support to motivate action and celebrate achievements.
• Trustworthiness. Able to maintain confidentiality and build trust in a safe space to encourage open and honest communication.

The Difference Between EI and EQ
EI and EQ are related concepts with a subtle difference between the two. EI represents Emotional Intelligence, which refers to the ability to identify, understand and manage one’s own emotions as well as the emotions of others in order to guide thought and behavior. EQ stands for Emotional Quotient, a measure of a person’s Emotional Intelligence. It is a numerical value assigned to a person’s ability to manage emotions and often used in the same way as IQ to evaluable a person’s overall intelligence. 

Being a good mentor requires not only the ability to impart knowledge, resources and skills, but also the ability to connect with and understand the needs of the person being mentored. Developing EI and EQ can lead to improved communication, better decision-making skills and increased motivation.

How Can You Be a Good Business Mentor?

Being a good mentor involves a combination of skills, experience and personality traits. Here are some ways you can become an effective business mentor:

• Be a good listener. Listening is a critical skill for a mentor. You need to be able to hear and understand the challenges and goals of the person you are mentoring before you can offer advice and guidance.
• Provide honest feedback. Give both positive and negative feedback and encourage your mentee to learn from their mistakes and improve their skills.
• Set realistic goals. Help your mentee set goals that are achievable, measurable and relevant to their business. Provide guidance on how to achieve those goals and hold them accountable for their progress.
• Share your own experience. If you’d had successes and failures, share them. This can help your mentee avoid common mistakes and gain insights into how to succeed in business.
• Be supportive. They need to know you’re on their side.

Defined Plans Help a Mentee Grow Personally and Professionally

A good mentor doesn’t just explore, they help their mentee develop a planned outcome. What are they trying to accomplish? What are the best steps to take to get there? How do you know when you’re done; is the relationship endless, or will you pass the mentee onto someone else? Here are some ways to define an effective plan:

• Set goals that are clear, realistic and achievable within a reasonable timeframe.
• Provide guidance and feedback on performance and help the mentee identify areas for improvement.
• Share your own experiences and insights to provide new perspectives.
• Encourage continual learning and skill development. Recommend courses or books, and introduce them to new ideas or concepts.
• Build a strong relationship based on trust and mutual respect within a safe space.
• Offer emotional and practical support. Listen when they need to vent and provide encouragement and motivation when they are struggling.
• Celebrate successes and milestones along the way to boost confidence and motivation to continue to grow and develop.

Mentors vs. Sponsors

Sometimes people confuse the terms mentor and sponsor. Although both can play an important role in career development, a mentor is someone who provides guidance, advice and support to help a mentee develop their skills and knowledge. They may offer career advice, help navigate organizational politics and provide feedback. This relationship is informal and based on mutual trust and respect.

A sponsor actively advocates for a person’s career advancement. They may use their own influence to help their mentee gain access to opportunities, secure promotions and develop a higher profile either inside an organization or within their own industry. This relationship is formal and structured, with specific goals and objectives.

Good Mentoring is a Core Reason to Join the Association for Enterprise Growth

The Association for Enterprise Growth (AEG) is a nonprofit organization providing mentoring and support to business owners by offering the following:

• Access to a network of experienced mentors who can provide guidance and support on a wide range of business topics, and who address specific challenges and opportunities to help you develop your skills and knowledge.
• Tailored support and a customized growth plan that identifies key performance indicators (KPIs), with ongoing support to help you achieve your objectives.
• Networking opportunities with other business owners and entrepreneurs to share knowledge and experience, and identify new opportunities for growth.
• Access to resources including training programs, educational materials, tools and templates.
• Accountability and motivation to help you stay focused and committed to achieving your goals quickly and effectively.

Our goal at AEG is to help you grow and thrive as a business leader, build personal wealth, and exit on your own terms. We invite you to join one of our communities of Elite Advisors, Inner Circle, Sponsorship, and Growth Advisors and benefit from the mentorship and networking opportunities offered.

To learn more, visit our website, or contact us at info@enterprisegrowth.com.