Some entrepreneurs may look at their success and think it insulting to consider talking to a business mentor. And others may look at their struggles and think it’s the only solution to getting the business back on its feet. Neither of these views are correct in terms of what a business mentor can do for a business.
What a business mentor is
Before we get into reasons why, we need to clearly define what a business mentor is and that should already start clearing up the reasons why you’d need one. A business mentor is a well-established person in an industry who offers to impart their knowledge and experience to lesser experienced entrepreneurs and employees.
One could consider business mentors as a more personal relationship than one would have with a business consultant, but just as beneficial (if not more). Business mentors are basically business consultants, except you don’t (always) have to pay for their advice and mentorship. It’s a mentorship relationship and partnership. So, regardless of who you are and how successful your company is, every entrepreneur needs a business mentor and here’s why.
Related: How can I find a mentor?
There will never be “nothing more to learn”
At no point in any person’s life will they be able to say “I know absolutely everything and there’s nothing more for me to learn”. It may feel that way, but sit down with a business mentor for five minutes and your mind will be swirling with questions. We learn something new every day and with the help of a business mentor, the “something new” will always be related to business and have the potential to lead to business success. Isn’t that something that every entrepreneur dreams of?
There will always be something for entrepreneurs in every industry to learn. Technology is forever developing and providing new innovative ways for industries to work and that’s something entrepreneurs need to stay on top of.
Every bit of experience is beneficial
Now, you may be wondering how a business mentor can help when the years of experience they offer is from a time period where technology wasn’t as great a factor as it is today. And the answer is consistency. While the face of the world changes, there are certain constructs that remain exactly the same and business mentors will be able to teach you about these fundamentals that consumers rely on and need in order to adapt to the changing world.
Every bit of experience that mentors offer their mentees is valuable and beneficial. Entrepreneurs are usually so caught up in the bigger picture that they forget about the smaller, background details that are, in fact, the cornerstones of that end goal. Mentors have been there, made those mistakes and are here to make sure you don’t go down the same paths that caused them business trouble.
So, while their information may seem “outdated”, basic principles never change and should not be overlooked.
Everyone needs a support system
Having the weight of the business rest on your shoulders can be a mentally and emotionally draining responsibility. Entrepreneurs don’t only look to business mentors for advice but for support as well.
Everyone needs a support system and, in business, this means having a mentor. Someone who can back up the difficult business decisions you make and who can listen to the inevitable ranting sessions that follow a rough day in the office. They’re also someone to let you know that you’re doing a better job than you give yourself credit for and someone who can talk some sense into you when you go off the rails a little bit (this happens to all entrepreneurs, don’t worry).
It opens doors to networking opportunities
Generally, business mentors have been in the game for years. And over all those years they have met with some of the most influential people in the industry and business world. Every entrepreneur needs a business mentor even if it’s only for the networking opportunities that come with the relationship.
Business success, these days, is highly influenced by who you know and the importance of networking is not something that entrepreneurs can dismiss. Your business mentor will be able to introduce you to the biggest names in the industry and get you into networking events where you will have the opportunity to meet new people who can help you on the path of innovation.
You need someone to challenge you
Speaking of innovation, another reason why you need a business mentor is so that you have someone who is knowledgeable about the industry to challenge you. Through challenges, you’ll be forced to think about business in a new way and create innovative ways of dealing with standard business issues.
The problem many successful entrepreneurs have is that they tend to stick with what works and choose not to push any boundaries for fear of failure. That type of thinking will only get you so far in the business world and then your competitors will be overtaking you. Any business mentor will be able to explain to you why failure isn’t always a bad thing and that by challenging yourself and innovating, you’re growing. There’s no success to be found when you’re standing still.
What A Grade 1 Sticker Business Taught Me About Business
It’s the very fundamentals that are frequently overlooked amid ambition and “blue sky thinking” – yet, these remain the most crucial element of any business.
When I was a kid, my father believed that instead of getting pocket money, my brothers and I should learn how to make money. Stickers were the school craze when I was in Grade 1, and we wanted a collection for ourselves, so Dad said if we wanted to buy the stickers, we needed to make the money. So, logically, we started a sticker trading business. Dad gave us the start-up money and took us through the basics of business.
We had a cash float for purchases, and learnt about cost price, mark-up and selling price – very basic accounting. We kept recycling that money, making extra and using it to buy more stickers. Then we worked out that if we increased the mark-up, we’d make a bigger profit – so why not make the mark-up as big as possible? The obvious happened. Our prices were too high, and we lost customers.
Valuable business lesson learnt, we came back down to a mark-up that other kids were willing to pay for.
More lessons to learn
Then people came to us and asked if they could take a sticker today and pay us tomorrow. We saw no reason not to trust them. Guess what? They didn’t pay us back. We had bad debt on our hands. When we sold out of stickers, we had cash-flow issues and couldn’t buy more stock. Dad was there to help us out, though, so we received another capital injection to get back off the ground. And this time, if we did extend credit, we loaded it for the privilege of “buy now, pay later” – another lesson learnt.
We ran a proper ledger for the business, tracking our inventory, sales and profit. Even if our “bank” account was a piggy bank, we had a clear record of what was going on. When I look back on it, none of what I learnt was irrelevant.
Today, I run a leading financial services company with billions of rand running through our bank accounts. Even though the finances of the business are run on a much larger scale, the principles of business – those basic principles that we learnt trading stickers – still power our company. And when I see entrepreneurial ventures failing, or when friends come to me for advice because their business is struggling, it’s almost always because they haven’t got these basics right.
One of the most important lessons I’ve learnt is that if you don’t fully understand how the money is being made, walk away. Whether you are dealing with stickers or financial services, the business principles should be straightforward: money coming in, money going out, and profitability.
Every day, I look at an Excel statement of my company’s forty bank accounts. Every day, I look at the cashflow, and unusual big-ticket items get a note so I know what’s going on. It’s just like that Grade 1 business, only on a bigger scale.
Once the other kids saw the success of our sticker business, they started to want to get in on the action, so they came to market with their own competing products. At first, we were able to innovate as the competition squeezed our margins and started to impact on our profits. Eventually, the whole situation got completely out of hand and the school banned sticker trading for profit.
While I didn’t become a sticker magnate, the lessons I learnt in Grade 1 remain central to every business I am involved with – get the basics right.
How To Handle A Director Who Always Says No
Diverse opinions on a board is a good thing — but is it boosting your business, or hindering growth and decisions?
Do you have that director on your board who always says ‘no’? Regardless of what the issue is, regardless of the context, who raises it or whether or not it is indeed a good idea, their response is either a simple ‘no’ or an elongated perspective on why they disagree? It can even feel at times that they are actively working against the company and against the board. Although they obviously do not see it that way.
Experienced directors will have multiple war stories related to this subject. Aspiring directors should be aware of how to approach these situations when they arise and how to avoid becoming the subject of such stories.
Develop a culture of trust, candour and professionalism
A board’s conduct must be characterised by trust, respect, candour, professionalism, accountability, diligence and commitment. It is the board’s collective responsibility to build this culture and to engage with one another in a productive and effective way.
Dissent should be welcomed when it is constructive and engaging. The idea of being the ‘devil’s advocate’ for the sake of it however, is not the best way to approach this. Dissent should be based on a real belief that the issue has not been fully debated or creates a real challenge for the company going forward.
If you have a director who genuinely believes a different path is right for the company, hear them out and engage in the discussion. In my experience, this often opens up an issue or changes a detail that when taken as part of the whole, improves the decision-making outcome for the board and the company.
Related: Contributing In The Boardroom
Remove the politics from the boardroom
At the heart of this issue is often politics. Politics between directors, who are also shareholders or executives. Politics between the ‘new guard’ and the ‘old.’ Regardless of the genesis, politics really do not have a place in the boardroom and directors who engage in it should be called out by the chairman or another senior director.
In local government I have heard stories of councillors who always vote ‘no,’ so that whenever something goes wrong, they can say “I told you so,” and show the public why they should be re-elected. But that is indeed politics. The boardroom is a very different space. It is private and discussions should be confidential.
Board rotation, a simple solution
While the removal of an errant director should never just be left to resolve itself, there is a simple solution that can support the easy removal of the most difficult directors. The challenge is that it requires forward planning prior to the appointment of any new director.
Directors should only ever be appointed for a predefined term, with automatic rotation at the end of that term. This does not stop you from reappointing a director for a further period. It is, however, always easier to ask someone to consider a further term than it is to tell them that their time has come and they should resign from the board.
Having a predefined term for a director essentially ensures an automatic resignation period. A simple rotation policy for directors is not just good governance, it is a practical step you can take to provide a way out of a sticky relationship.
Ultimately the board as a whole must address issues that detract from the board fulfilling its function as and when they arise. A rotation policy might provide an effective backstop. A high-performance board is one that will tackle the issue head-on.
Read next: How Diversity Drives Board Performance
The Power Pose: Using Body Language To Lead
Use the way you move and stand and interact with others to become a better entrepreneur and leader.
In 2012, the power pose became a global sensation. A Ted Talk by Amy Cuddy hit a staggering 46 million views and became the second most popular Ted Talk in history. The premise was simple – hold a powerful pose and it will not only affect the way you behave but it will even change your body chemistry. Since the talk, the power pose has met with heavy criticism and been labelled as nothing more than pseudoscience. Fortunately for believers, they were proven right. Amy Cuddy released further research this year and it fundamentally proves that this bold stance works exactly how she said it did back in 2012.
The power pose isn’t something that you’d adopt in a meeting or around the office but the science behind it shows how important it is to pay attention to your body language as it can fundamentally change how you are perceived.
Notice how you are noticed
People spend a lot of time reading one another’s body language and the way a person stands or holds their hands or moves can influence how others see them. It’s very natural to judge someone else’s posture, but what about the way they are judging yours? Few people look at how their body language is affecting the way people engage with them.
So, what are you supposed to do?
Fake it until you make it
Want to know how can you adapt to become a better leader? You can fake it.
The power pose isn’t the only way to change your mood. Research has shown that whether you laugh naturally or put on a smile and make yourself laugh, your body still releases the same levels of serotonin.
Whether you are really laughing or just pretending to laugh doesn’t matter – they both have the same impact on your demeanour.
Change how others see you
Think about the pose that every athlete adopts when they win a race or achieve something that’s been physically taxing. They hold their hands outstretched in the air. Even blind athletes hold the same pose. It’s big, it’s bold and it’s a physical manifestation of success.
Now consider the defensive pose. The tight hunched shoulders or inward curve of the spine. These poses immediately make a person look nervous, afraid and lacking in confidence. Like the porcupine curling in on itself for protection.
The same ideas apply to daily business life. While the power pose and the athlete pose are not necessarily a team activity, ensuring that you hold your body upright and with confidence means that you’re conveying an attitude of strength. You come across as confident and capable and positive. You are ready to take on anything and overcome the odds.
By contrast, if you are hunched and withdrawn, you come across as nervous and lacking in confidence and these are not the qualities you want associated with you as an entrepreneur and a leader.
Body language for entrepreneurs
- Shake hands like a hero. The way you shake hands with someone is very significant in terms of establishing equality. Be even, be firm but don’t pull people towards you or turn their hands under your own. This makes them feel like you are trying to establish dominance.
- Create an atmosphere of openness. Maintain eye contact, say hello to people with warmth while holding a strong posture. A warm and open greeting is essential to establishing trust.
- Do the power pose for two minutes before any meeting or interview. This will get those chemicals stirring and make you feel confident and in charge.
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