3 Important Reasons Why Every Startups Must Undergo Mentorship
Updated: Jun 20, 2022
Starting a business from the bottom up is the most crucial stage in determining what will happen next. Many startup protégés are born and raised in Southeast Asia, poised to become the next global innovation hub - striving to be the new Silicon Valley. Thus, many investors are deep-diving into the thriving startup ecosystem, joining the wave altogether. However, according to Embroker, only 10% of startups are successful each year, and they are the ones that know what it takes to overcome the chances of failure. This is because startups come from early stages – they might not have a product yet, or perhaps their startup is just an idea.
While the team only relies on the founder, it can be challenging for the team to excel and grow at the ideal speed. Undergoing mentoring programmes can help plan a better business model and pipeline, making you ahead of competitors. There are few areas where mentorship is more valuable than in the startup industry, where entrepreneurs may feel supported throughout their journey.
Venture capital (VC) can support startups in long-term growth opportunities
With a vast burden weighing on the founder's shoulder, there is also a struggle to secure funding since a small percentage of founders are depleted to the point where they have little time for product development or market potential. Your initial funding will most likely come from you and/or your partners, and the goal is to raise it externally. Funds increase your visibility and attract the attention of the market. It also adds value to your business and shows prospective partners, customers, and future investors that you are worth considering putting money into.
Connecting with a potential investor to acquire funds may take more than half of the work. Joining mentoring programmes gives access to network and source venture capitalists faster and easier, resulting in going through more precise directions and financing.
Mentorship helps startups prevent making expensive mistakes
While a mentor cannot tell a founder exactly what they need to execute, they may assist as a sounding board for their ideas. In the business world, it's either chasing or riding the wave. Hence, it's a continuous learning curve for startups from the beginning. We find that the best mentor matches are to overcome a specific challenge and prevent making expensive mistakes that could affect your company's goals and reputation.
An accomplished mentor can direct you to avoid future risks potentially. Mentors will tell you things no one else will, whether it hurts you or not; their advice is based on conquering hurdles on the path to success.
Entrepreneurs identify business opportunities through mentoring programmes
Often when startups hit rock bottom, they could be experiencing burnout due to the numerous change of business plans in the first few years; the fate of their business hangs in the balance. During these times of uncertainty, mentors can be precious. They can assist in hiring the right talents, link you with speaking to legal and financial advisors, decide your organization's worth from the get-go, and help you establish your business foundation.
You have the chance to get to know more people – get the right kind of information from them or establish new connections.
Mentoring as a part of the startup's operating model can accelerate the company's growth to see if it would fit into the venture mechanism to garner strategic investment and grab opportunities. As a startup founder, by joining mentoring programmes, you'll be open to receiving great business advice and efforts when talking to mentors who have been through it before. FutureLab's Entrepreneurs Subscription package provides you with long-term support. Be inspired and challenged to craft a better approach. It can help you save money, time, and effort.