Only 50% of businesses survive beyond their first five years. In some industries, the startup failure rate can be as high as 90%. With business being so costly, and the landscape so competitive, entrepreneurs need all the help that they can get to ensure business success.
One thing that some entrepreneurs can overlook is the need for a business mentor. A mentor can provide essential guidance and insights, helping entrepreneurs to avoid common mistakes that could lead to business failure. New business owners who are smart and who want to achieve success should recognize supervision and mentorship as one of the most important factors contributing to longevity.
Startup mistakes can usually be broken down into some key areas:
- Developing products or services for a non-existent market.
- Hiring the wrong people.
- Lacking focus for basic business tasks (spreading resources too thin).
- Lacking marketing knowledge.
- Lacking experienced leadership.
- Focusing on investors rather than customers.
- Poor financial management.
- Lacking experienced help at an executive level.
The last one is particularly important. It relates directly to business mentors and the help that they can provide to a fledgling business. The best mentors are successful business owners themselves, they are veterans of the startup process and can bring key insights and operational knowledge.
A new entrepreneur with an oversized ego and no help will have a much harder time finding success with a new company. Business mentors can share a wealth of knowledge that won’t be found in books or websites, helping to develop the next generation of successful businesses and entrepreneurs.