I have been mentoring entrepreneurs for over 20 years now, helping them plan and get their businesses off the ground and then go on to start in business and grow. Over that time, I have helped so many different people, from varied backgrounds and careers, with such diverse ideas of what they want to build and how they want to do so.
While I believe a tailored approach is crucial to mentoring as everyone’s business stories and motivations are personal to them, I’ve come to recognise certain patterns – green and red flags so to speak –that stand out to me when talking to business owners. These signals help me guide entrepreneurs more effectively through the complex journey of building a successful business.
Green flags: Confidence
Confidence is key when starting a business. Embarking on the entrepreneurial journey can indeed be intimidating, but it’s important for business owners to recall the initial spark that set them on this path – their original idea. Reaching the milestone where a business plan is approved and funding is secured is no small feat; it’s a testament to the entrepreneur’s capabilities and vision. Mentors, along with friends and family, can provide invaluable reassurance during moments of doubt. Entrepreneurs should hold onto their confidence, an essential ingredient for success and remember, the belief in the idea and their ability to bring it to life has already brought them this far.
Budget and cash flow
It may seem straightforward, but budgeting and cash flow management truly are the bread and butter of running a business. A robust business plan will have these financial elements finely tuned, detailing a clear strategy for managing the company’s finances and will be updated on a regular basis.
Marketing
Marketing is so important and successful businesses recognise the importance of a well-defined marketing strategy, whether it’s centred on social media engagement or online advertising. Whatever the chosen avenue, a clear and coherent plan is essential, along with a vision for the company’s brand identity.
From a mentor’s perspective, working with mentees to both revisit and continue developing their marketing strategies is a key part of the mentoring journey. During our discussions we look at things like online reputation management, website user experience (UX) and offline marketing, and my role largely involves supporting mentees to plan and execute strategic marketing activities that lead to tangible results.
Red flags
Starting a business often means charting new territories, and an inherent part of this journey is making mistakes – no business launch is ever completely smooth. However, as a mentor, I keep an eye out for certain indicators that suggest areas in need of work or guidance. These signals help me to steer entrepreneurs towards more effective strategies and to navigate the inevitable bumps along the road to success.
Inflexibility
Inflexibility can be a significant hindrance in business. While mentees may believe they have the most watertight business plan, the reality of business is that it’s subject to real-life variables, including external circumstances that are often unpredictable. Being adept in business isn’t just about having a solid plan; it’s also about how you react and adapt to the unexpected. The ability to pivot and adjust your strategy in the face of new challenges or unforeseen circumstances is a hallmark of a resilient and potentially successful business.
Neglecting or having little understanding of marketing
Neglecting marketing is a common oversight that can stall a business’s growth. Marketing is not just an afterthought; it’s a critical part of business strategy that demands attention and investment. A well-executed marketing plan can make the difference between a business that merely survives and one that thrives.
As a Start Up Loan mentor, I have had the privilege of mentoring some extremely intelligent and talented people who have had amazing business ideas and a clear vision as to how they can and will succeed. Often mentoring involves confidence building, one of my most recent mentees has successfully started a franchise, secured an NHS contract, secured investment and is on track to apply for grant funding via Innovate UK. Another mentee I worked with quite recently described the best part of her mentoring journey as being when she was encouraged to “step into her own power”, taking control of both business and personal circumstances to ensure her ongoing success.
I would really urge entrepreneurs to take advantage of the free resources at their disposal. The Start Up Loans programme, for instance, offers pre- and post-loan mentoring, which can be incredibly beneficial for first-time business owners
At the end of the day, I’d encourage all business owners to have some kind of formal – and potentially informal as well – mentoring in place. Starting up a business is full of unknown and new challenges and can be a lonely place. National Mentoring Day was a fantastic opportunity to remind ourselves that having an impartial sounding board to help is very useful and can help with coming up with solutions to the inevitable problems that will come up when running a business.
